The Workers (Predictable Terms and Conditions) Act 2023 represents a significant legislative shift aimed at providing workers with more stability and predictability in their working hours. This Act, which came into effect in September 2024, grants workers the right to request a predictable work pattern, addressing the longstanding issues associated with zero-hours contracts and other forms of precarious employment. The Act is designed to reduce the "one-sided flexibility" that has historically favoured employers, thereby empowering employees to gain more control over their schedules and financial stability.
Key provisions of the Act
Eligibility and Scope: The Act applies to all workers, including those on zero-hours and agency contracts, who have been employed for a minimum of 26 weeks. This eligibility criterion ensures that a broad range of workers can benefit from the new rights.
Right to Request: Workers can request clarity on the total hours they will work, the specific days and times they are scheduled to work, and the duration of their contracts. This right extends to both long-term and short-term contracts under 12 months.
Employer's Obligations: Employers are required to handle these requests seriously and follow a structured process. They can only deny a request for legitimate business reasons, and employees have the right to appeal if their request is turned down. Employers must also provide a decision within one month of receiving a request.
Impact on zero-hours contracts
Zero-hours contracts have been a contentious issue due to their inherent unpredictability, which often leads to instability for workers. The introduction of the Workers (Predictable Terms and Conditions) Act aims to mitigate these issues by providing workers with the ability to request more predictable working patterns. This change is expected to bring about a more balanced labour market, where both employers and employees can benefit from mutual flexibility.
Challenges and considerations for employers
Business needs vs. employee rights: While the Act empowers employees, it also poses challenges for employers who must balance business needs with employee rights. Employers can refuse requests based on several statutory grounds, such as additional costs, detrimental effects on customer demand, or insufficient work during proposed periods.
Implementation and Compliance: Employers must establish clear processes for handling requests and ensure compliance with the new regulations. This includes documenting legitimate reasons for declining requests and preparing for potential appeals or tribunal cases if a worker faces dismissal or similar treatment after making a request.
Practical steps for employers
To effectively manage requests for predictable hours, employers should consider the following steps:
Develop a policy: Create a comprehensive policy that outlines the process for handling requests for predictable hours. This policy should be communicated to all employees and included in staff handbooks.
Training and awareness: Train managers and HR personnel on the new rights and obligations under the Act. This will ensure that requests are handled fairly and consistently across the organisation.
Structured process: Implement a structured process for receiving, reviewing, and responding to requests. This should include holding meetings with employees to discuss their requests and providing written decisions within the stipulated timeframe.
Documentation and record-keeping: Maintain detailed records of all requests and the reasons for any refusals. This documentation will be crucial in the event of an appeal or tribunal case.
Explore alternatives: If a request cannot be granted, consider alternative arrangements that may meet both the employee's needs and the business's operational requirements.
Legal and regulatory framework
The Workers (Predictable Terms and Conditions) Act 2023 is supported by a draft Code of Practice developed by ACAS, which provides guidance on handling requests for predictable working patterns. While not legally binding, this Code will be considered by courts and tribunals when determining cases, making it an essential resource for employers.
Grounds for refusal
Employers can refuse a request for predictable hours on several statutory grounds, including:
Additional costs: If granting the request would incur significant additional costs for the business.
Customer demand: If the request would negatively impact the ability to meet customer demand.
Staff recruitment: If the request would affect the recruitment of staff or other aspects of the business.
Insufficient work: If there is insufficient work available during the proposed periods.
Structural changes: If planned structural changes to the business would be affected.
Anticipated challenges and future developments
While the Act is a step towards greater predictability and stability for workers, it is not without its challenges. Employers may face difficulties in balancing the new rights with operational needs, particularly in industries that rely heavily on flexible or zero-hours contracts. Additionally, the Act does not address all issues related to precarious work, such as in-work underemployment or the need for advance notice of work schedules.
Potential reforms
The government is considering further protections for zero-hours workers, including financial penalties for last-minute shift cancellations and a right to reasonable notice of working hours. These potential reforms aim to improve stability and address the uncertainties workers face with zero-hours contracts.
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