Agency workers to be included in zero-hour contracts ban

A ban on zero-hour contracts will apply to agency workers, and umbrella companies will be regulated, under Government plans to strengthen workers’ rights.

The Government is tabling amendments to its Employment Rights Bill after consultations with business groups and trade unions.

Business Secretary Jonathan Reynolds also set out moves to “align” trade unions with modern work practices and extend statutory sick pay.

“The Government believes that every worker should be able to access a contract which reflects the hours they regularly work.

“We believe this should extend to agency workers, not only to offer them greater certainty of hours and security of income, but to also ensure that agency work does not become a loophole in the plans to end exploitative zero-hours contracts,” the Business Secretary said.

Collective redundancy rules will also change to increase the maximum period of protective award from 90 to 180 days.

And umbrella companies, which Mr Reynolds said leave many workers unaware of who is responsible for their rights or whether they are entitled to any, will be regulated over employment rights.

The Government also plans to update the framework for trade unions to “align it with modern work practices”, Reynolds said.

This aims to remove unnecessary restrictions on trade union activity and create a system that “balances the interests of workers, businesses and the wider public”.

The amendments aim to streamline the process for unions to gain recognition from employers, extend the expiry of mandate for industrial action from six to 12 months and ensure that trade unions provide a 10-day notice period for industrial action.

About 1.3 million people paid less than £123 per week in the UK will get guaranteed sick pay equivalent to 80% of their weekly salary as part of changes expected to come in next year.

They will get 80% of pay or the new rate of statutory sick pay, whichever is lowest.

Unions were largely positive in their response.

Unison general secretary Christina McAnea said: “This comprehensive package of measures is what working people and decent employers have been waiting for.”

He added: “The focus must now turn to getting the implementation of this legislation right, including resourcing the agencies responsible for enforcement so that these rights exist in reality as well as on paper.”

The GMB union’s general secretary said the Bill was “far from perfect” but a “massive step forward”.

The Resolution Foundation said low-paid workers stood to gain the most from the changes.

Nye Cominetti, principal economist at the think tank, said: “The Government’s employment rights reform agenda will, if successfully implemented, amount to the biggest shake-up of UK workplaces in a generation.

“The provisions being proposed today will improve the quality of many people’s lives. But the scale of change they’d bring about in low-paying sectors like retail and hospitality means they should be implemented carefully.

“Workplace reform shouldn’t end with this Bill either. Today’s provisions should be reinforced by greater clarity over workers’ employment status, and better enforcement of workplace rights.”

Meanwhile, the Conservatives called it a “flawed Bill” and said the changes made it worse for businesses and employees.

Shadow business secretary Andrew Griffith said: “Jonathan Reynolds’ head remains well and truly in the sand as he prepares to unleash waves of low-threshold, short-notice strikes through this unemployment Bill under direction of his trade union paymasters.

“Despite months of businesses warning of job losses, price hikes and shuttering up shop, the amendments the Government have introduced make the Employment Bill worse not better for businesses and employees.

“Under new leadership, the Conservatives understand that without supporting business to grow, the economy will not grow which is why we are calling on the Government to end their assault on business.”