As part of upcoming changes to the UK government’s employment bill, agency workers look set to be included in a ban on so-called “exploitative” zero-hours contracts.
Under these proposals—reportedly to be presented on Tuesday—employers would be required to offer agency staff a guaranteed minimum number of weekly hours, while those who opt to remain on zero-hours agreements would qualify for compensation if their shifts are changed at short notice.
This inclusion of agency workers follows union pressure to avoid a potential loophole: companies facing new restrictions on zero-hours contracts could otherwise shift to hiring through agencies to bypass any ban. With an estimated 900,000 agency workers in the UK, labour groups argue that leaving them out of legislation could undermine the bill’s aims.
While Labour has repeatedly promised to stamp out exploitative zero-hours contracts, some industry bodies worry about unintended consequences. The Recruitment and Employment Confederation says it is critical that any new rules maintain the flexibility that many workers and employers value in zero-hours arrangements. Major staffing firms—such as Hays, Adecco, and Manpower—have labelled the reforms “unworkable,” warning they could lead to reduced hiring and more tasks being outsourced to self-employed contractors.
According to the TUC, more than a million people in the UK are engaged on zero-hours contracts, with many working for the same employer for years. These arrangements are common in sectors ranging from hospitality to healthcare and often lack guaranteed hours, leaving workers exposed to sudden changes in wages and schedules.
Alongside the zero-hours ban, the employment rights bill includes an expansion of sick pay coverage for 1.3 million of the lowest-paid workers. The government has proposed guaranteeing them up to 80% of their weekly salary from day one of illness, addressing what the Resolution Foundation has called one of the least generous statutory sick pay systems in the developed world.
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UK ban on zero-hours contracts set to include agency workers