Workers (Predictable Terms and Conditions) Act 2023

Earlier this year we discussed the proposed changes to the Workers (Predictable Terms and Conditions) Act 2023 that were due to come into force in September 2024 after receiving royal assent in September 2023. The amendments to the Act would have created a new statutory right for atypical workers – for example those on fixed term contracts under 12 months, zero hours contracts and agency workers – to request a predictable working pattern. We commented on this in our last newsletter; however, the amendments to the Act will no longer come into force this autumn as originally planned. The new Labour Government is likely to bring about similar changes under its proposed new Employment Rights Bill instead.

These include a ban on ‘exploitative’ zero-hour contracts ensuring workers have a right to a contract which reflects the number of hours they regularly work using a 12-week average. The policy also includes giving workers "reasonable notice" of any shift changes and compensation for any cancelled or curtailed shifts. This will provide more stability for workers, while maintaining the flexibility that some employees find beneficial.

At this stage, there is limited information available regarding the proposed right to request a contract that reflects regularly worked hours, or the specifics of the new Employment Rights Bill. However, it is expected that the Bill could be presented to Parliament by October 12, 2024. The proposals will likely undergo further consultation, and any resulting legislation is not anticipated to come into effect until autumn 2025 or later.

In the meantime, you should begin preparations by reviewing your workforce, particularly identifying those on zero-hour or a typical contracts. This will help you assess how the 12-week average calculation might impact these workers. Staying informed and proactive will be key as more details emerge.

There are many outstanding questions including.

• Will there be a qualifying service period and, if so, how long?
• How will seasonal variations in workloads be accommodated?
• Will workers who wish to retain full flexibility over the hours they work be able to do so?

If you need support with these calculations HR solutions can advise and work with you.