Predicting the unpredictable

We previously reported on the Workers (Predictable Terms and Conditions) Act, which was due to come into effect around about now.

It now seems unlikely that the new Government will bring the legislation into force. Does this mean that unpredictable working patterns will remain in place?

Background

The Act received Royal Assent in September 2023. It was intended to give workers and agency workers the right to request more predictable terms and conditions of work, where there was a lack of predictability to their work pattern. Employers would only be able to reject such applications on specific grounds.

If an employer failed to follow the correct procedure in dealing with an application, dismissed a worker, or subjected the worker to a detriment for making an application, the worker could have brought a claim.

Predictions

As part of its Plan to Make Work Pay, the Labour Government has committed to ending one-sided flexibility and ensuring that all jobs provide a baseline level of security and predictability by:

• Banning exploitative zero-hours contracts.
• Ensuring that workers have the right to:
  • a contract that reflects the number of hours they regularly work, based on a 12-week reference period; and
  • reasonable notice of any shift changes or working time, with compensation proportionate to the notice given for any shifts cancelled or curtailed.

Whilst not confirmed, similar provisions will likely find their way into the Employment Rights Bill, due to be introduced within the first 100 days of Labour coming into power (by 12 October 2024).

Comment

Although some ability to use unpredictable contracts (such as fixed-term contracts for seasonal work) is likely to remain, we can expect the Government to either significantly limit the flexibility currently available to employers or provide employees with a stronger right to request a predictable contract than would have been available under the Act.

Employers can prepare for the upcoming changes by reviewing working patterns such as zero-hours contracts, minimum-hours contracts, and rolling temporary contracts to identify whether they can issue workers contracts that represent a more predictable working pattern.

For more information about this article or any other aspect of People Solutions. Reimagined. download our App for Apple or Android, and contact your integrated employment law, HR, and health & safety team at AfterAthena today.