These rules cover a new requirement to offer guaranteed hours to agency workers, to give reasonable notice of shifts and to provide payment for short notice cancellation or curtailment. Read more….
The announcement is contained in a government response to a consultation that closed in early December 2024, states that the rules will apply to agency workers despite arguments put forward by industry representatives including the Association of Recruitment Consultancies (‘ARC’). There is risk that any measures such as are proposed may interfere with flexibility that agency work offers to businesses and hirers, pushing up cost for a benefit that is not altogether clear, especially in a period of low growth.
Key points
The headlines in summary are as follows:
- The Employment Rights Bill previously excluded agency workers from being subject to zero hours rules. This exclusion has been removed, and so all zero hours rules will now apply to agency workers, but subject to new regulations which have yet to be provided.
- Hirers must offer guaranteed hours contracts to zero hours agency workers after 12 weeks of supply
- No changes to current laws on transfer fees
- Reasonable notice of shifts and shift changes must be provided with both the agency and hirer responsible for doing this
- Agency to be liable to pay for short notice cancellation or curtailment, but with a right to recoup these payments from the Hirer
What should businesses do now?
Agencies will undoubtedly be concerned at what, as a minimum, will be another change to their operational requirements. At this stage, there are no draft regulations to refer to nor is there a date for any consultation on the detail of any of the proposals. Multiple questions clearly arise, but in the absence of the detail these will be difficult to formulate.
The next step is the enactment of the Employment Rights Bill which contains the primary legislation, this is likely to be followed by one or more consultations on the detail and draft regulations. At that stage the position will become clearer.
Right now there is little additional detail, but whilst these proposals were initially planned to be implemented in 2026, from our discussion with the Department for Business and Trade (DBT), it would seem that the volume of work required to complete all the steps leading to final legislation could take longer.
Association of Recruitment Consultancies (ARC)
We welcome any comments. Whilst the devil will be in the detail the big question is whether the proposals could affect cost and/or productivity and thus the recruitment supply sector. There is risk that the result, whilst intended to protect agency workers, may be unhelpful overall.
ARC is an independent trade association solely representing recruitment businesses on the issues that really matter. Working with the recruitment law specialist Lawspeed, which itself has a history of successfully representing recruitment business, ARC has a track record of successful representation. Together, we help make a difference to the outcome for the long term benefit of the industry.
Our consultation response is available on request. To join ARC please call 01273 236236.
