Casual & zero-hour contracts – major changes ahead???
Individuals across the country will be given more say over their working patterns as the Workers (Predictable Terms and Conditions) Act 2023 achieved Royal Assent on 18 September 2023. The bill is now an Act of Parliament (law) and when it comes into force in around a year’s time, it will amend the Employment Rights Act 1996 to support many workers who currently experience one-sided flexibility.
So, what are the rules?
Those on atypical contracts, including those on zero hours contracts and fixed-term contracts of 12 months or less, are given the right to request a more predictable working pattern if they meet the following criteria:
- Minimum length of service: requests are subject to a minimum service requirement. It has not yet been confirmed what this will be. However, it is suggested that it will be 26 weeks’ service, although those weeks will NOT need to be continuous.
- Lack of predictability: if there is a lack of predictability with regards to any part of the worker’s work pattern (for example, if they are on a zero hours contract and do not have a guaranteed number of hours). Fixed term contracts of 12 months or less are presumed to lack predictability too.
- Work pattern: the requested change relates to the individual’s work pattern, for example, the number of hours, days and times worked, and the length of the worker’s contract.
- Purpose of request: the worker’s purpose of the request is to receive a more predictable work pattern and the date the change is to take effect should be confirmed.
- Number of requests: the worker has made no more than two applications in a 12-month period (this limit includes any flexible working requests asking for a change in terms and conditions having the effect of providing a more predictable working pattern).
The employer must consider applications in a reasonable manner and provide a decision within one month. Workers will be able to bring claims for breach of the Act based on procedural failings by the employer, unlawful detriment, and automatic unfair dismissal.
Not a guaranteed right
It is important for employers to remember that the Workers (Predictable Terms and Conditions) Act 2023 only provides the right for an individual to make a request. It is NOT an automatic right to more predictable working arrangements. An employer will be able to refuse the request for the following reasons:
- Burden of additional costs
- Detrimental effect on the ability to meet customer demand
- Detrimental impact on the recruitment of staff
- Detrimental impact of the temporary work on other aspects of the employer’s business
- Insufficiency of work during the periods of work proposed
- Planned structural changes
However, if the request is approved by an employer, they must offer the new terms within two weeks.
What does this mean for employers?
Employers with casual or zero-hour workers, or who regularly use agency workers should begin to examine their long-term needs, consider the potential impact of these new rights and as the Act comes into force in approximately a year’s time you have time to start planning accordingly.
Acas In response to this legislation, Acas have been asked by the Government to prepare a new statutory Code of Practice. The purpose is to help workers and businesses understand the law and to provide guidance on how requests should be made and considered. Acas will launch a public consultation on the draft Code this autumn.
