UK to Ban Zero-Hours Contracts for Agency Workers, Boosting Job Security in Major Employment Bill Reform
March 4, 2025
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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