UK to Ban Zero-Hours Contracts for Agency Workers, Boosting Job Security in Major Employment Bill Reform

March 4, 2025
UK to Ban Zero-Hours Contracts for Agency Workers, Boosting Job Security in Major Employment Bill Reform
  • Currently, statutory sick pay rates in the UK are among the lowest in the developed world, leaving many low earners without benefits.

  • The employment rights bill also aims to guarantee sick pay for 1.3 million of the lowest-paid workers, providing 80% of their weekly salary from the first day of illness.

  • However, big recruitment firms have raised concerns that these changes could negatively impact hiring flexibility and reduce employment opportunities.

  • On March 4, 2025, the UK government will present an amendment to the employment rights bill aimed at banning zero-hours contracts for agency workers.

  • This proposed change is part of broader reforms to the employment bill that seeks to enhance job security for vulnerable workers.

  • With approximately 900,000 agency workers in the UK, their inclusion in these new regulations is significant.

  • Unions advocate for this inclusion, arguing it is crucial to prevent employers from evading the law by hiring agency staff.

  • Under the new regulations, employers will be required to provide agency workers with contracts that guarantee a minimum number of working hours each week.

  • Additionally, agency workers on zero-hours contracts will be eligible for compensation if their shifts are changed with short notice.

  • The government has yet to determine whether the minimum guaranteed hours for agency workers will be based on a 12-week reference period or a longer duration.

  • Currently, over 1 million people in the UK are employed under zero-hours contracts across various sectors, including hospitality and healthcare.

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