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Insights2022-01-20T14:42:10+00:00

New Employment Rights Bill: Zero Hours Contracts

What is Changing? The proposal under the New Employment Rights Bill (NERB) is to ban the use of ‘exploitative’ zero-hours contracts and replace such contracts with a new right for employees to have a contract that reflects the hours regularly worked (in a 12-week reference period). The legislation will also apply to workers on low-hours contracts – as of yet we do not know how low hours will be defined?  The NERB also repeals the Workers (Predictable Terms and Conditions) Act 2023, which had been expected to come into force this year. The legislation would have given workers the right to request a predictable work pattern if they lacked predictability and met the requirement of 26 weeks' continuous service. However, it does say that workers should be given reasonable notice of any change in shift or working time (regularity of hours) with compensation that is proportionate to the notice given for any shifts cancelled or curtailed. What is the impact? Clause 1 of the Bill introduces a new obligation on employers to offer “guaranteed hours contracts” to qualifying workers. This applies to workers who, over a specified reference period, regularly work more hours than those guaranteed in their contracts, effectively

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