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The UK Government has recently published a series of amendments to the Employment Rights Bill following consultations that took place last year. As a recruitment agency working closely with both employers and job seekers, we recognise the importance of understanding these changes and their potential impact on the employment landscape.
These amendments represent significant developments in employment law, particularly regarding zero hours contracts, trade union recognition, and protections for agency workers. To help our clients and candidates navigate these changes effectively, we've prepared this comprehensive overview of what's changing and what it means for you, including insights from industry experts at REC and CIPD.
When Will These Changes Take Effect?
Firstly, nothing is changing overnight. While the Bill is heading to the House of Commons next week, the final details will be hammered out through secondary legislation and consultations. As the REC notes, we won't see these changes enacted until "2026 at the earliest."
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Zero Hours Contracts – What's Changing?
If you're an agency worker on a zero hours contract, these amendments bring good news. You'll soon be entitled to contracts that clearly spell out your working hours and who's responsible for what.
According to the REC, "Agency workers will be able to access a contract that clarifies the hours they work and where responsibility lies."
However, if you're a business that relies on flexible staffing, don't worry – the government is keen to balance worker protections with business flexibility. The CIPD highlights that "agency workers play a crucial role in the UK's temporary flexible workforce, which helps employers manage peaks and troughs in demand."
Who's Responsible for Guaranteed Hours?
Here's where things get interesting for both our client businesses and recruitment partners. Under these amendments, the end hirer (that's the business where you actually work) will generally be responsible for providing guaranteed hours. But there's wiggle room.
As the REC explains it, "flexibility will remain, allowing this obligation to be placed on agencies or other intermediaries in specific scenarios."
Both hirers and agencies will need to provide reasonable notice about shifts, cancellations, and changes. This means better planning and fewer last-minute surprises for everyone involved.
Sick Pay from Day One
This is a big win for workers. Soon, all workers – including agency staff – will be eligible for Statutory Sick Pay from day one, rather than having to wait.
The REC confirms that sick pay will be "payable at a rate of £116.75 or 80% of a worker's regular earnings, whichever is lower."
We're still waiting for clarity on how exactly this will work for agency workers, but it's definitely a step forward for worker protections.
Umbrella Companies Coming Under Regulation
If you work through an umbrella company, or if you're a business that engages workers this way, take note. These companies will soon be regulated under the Employment Agencies Act 1973.
The REC calls this "a very welcome development" that will "create a level playing field between agencies and umbrella companies."
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Changes to Trade Union Recognition
For businesses, the Bill makes it easier for unions to achieve recognition and access workplaces. If your company hasn't worked with unions before, this might require some adjustment.
The CIPD points out that "many employers will have no experience of working with trade unions and will need support to develop the necessary employment relations skills and avoid disputes."
What's Missing from the Amendments?
Interestingly, some expected changes haven't materialised. The government's promise to introduce a Single Worker Status hasn't been addressed, and the much-talked-about Right to Switch Off "no longer seems to be on the Government's immediate agenda," according to the REC.
What Happens Next?
The specific details of how all this will work in practice will come through secondary legislation, which is still to be developed. The government will be consulting widely to ensure the regulations are "clear, detailed, and workable."
At our agency, we'll be keeping a close eye on developments and will continue to guide both our clients and candidates through these changes. The extended timeline gives us all time to prepare and adapt.
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