Category: Employment Law
Zero-hour contracts are also known as ‘casual contracts’, and they are a type of employment agreement that provides flexibility for both workers and businesses. The amount of hours that someone on a zero-hour contract will work varies from week to week. This is often dependent on the worker’s availability and how much work there is for them to take on.
Several changes have been made to the rules under the Employment Rights Bill to benefit workers. One of these big changes impacts how businesses must treat workers who are on zero-hour contracts. It is crucial to ensure your business adapts to follow the changes made to the Bill, also taking into account how these changes will impact the way you run your business. A recent BBC report outlines some of the changes being made to zero-hour contracts.
Here is our advice on how you can make sure your business adheres to these changes…
Workers having a set number of working hours per week
Workers will now be entitled to a set number of working hours, which means that they will always be guaranteed work. The minimum number of hours will be detailed in a contract, and this will be worked out based on the average hours that they normally work. This means work will need to be provided even if your business is going through a quiet period.
Therefore, this reduced flexibility needs to be taken into account when planning out your business’ schedule and forecasting the workload and demand that needs to be met. It may be beneficial to your business to review your staffing model and adjust the contracts of workers where necessary.
Agency workers entitled to compensation
Following another change made to the Bill, agency workers will now be eligible for compensation, should their shift get cancelled or modified at short notice. To comply, your business will need clear procedures in place for managing shifts and cancellations. Your business needs to be able to pay your zero-hour contract workers even when they haven’t worked, so systems should be implemented where possible for scheduling that reduces the need for last-minute changes. If cancellations are unavoidable, you should ensure workers are notified early to avoid penalties. Reviewing contracts and establishing transparent communication with agencies will help minimise issues.
‘Fire and rehire’
This refers to an employment practice where businesses are dismissing employees who disagree with changes to their contract, and then offering to rehire them under new terms. These terms are typically worse for the worker and they do not get much input into this decision. Amendments have been made under the Bill to stop businesses from doing this, including doubling the penalty the business will face.
To ensure that your business adheres to this new change, workers should be consulted proactively on anything that would impact them and their employment contract. Your business should be made more flexible wherever possible to accommodate your workers’ needs.
Changes in legislation can often feel confusing and scary to navigate. By working with us, we can do the hard work for you and make sure you stay fully compliant with existing and new legislation. Contact us today to learn more about how we can support your HR needs.