Workers (Predictable Terms and Conditions) Bill gives employees more power over working hours
The Workers (Predictable Terms and Conditions) Act 2023 recently received Royal Assent, which will give workers whose working patterns lack predictability the right to request a predictable working pattern, thereby changing their working terms and conditions.
When such a request is received, businesses would need to follow a new statutory process to decide whether or not to grant the
request.
Whilst all businesses would need to understand this new statutory process, the impact is likely to be felt more by organisations that
provide temporary, fixed-term contract, or zero-hours work.
How Will This New Law Benefit Employees?
All workers will be entitled to apply for a change in terms and conditions of employment if there is a lack of predictability in their work pattern – this includes temporary agency workers.
A lack of predictability will apply for workers where there is a lack of certainty relating to the number of hours they work, the times they work, the days of the week worked or the period for which they’re contracted.
An application for a more predictable working pattern will need to contain certain information that sets out what sort of predictability they are seeking and a proposed start date.
- What Are the Requirements to Request a Predictable Working Pattern?
How Would Employers Need to Respond to Requests?
Employers would need to follow a formal process (to be confirmed in a new Code of Practice) to decide whether or not to grant an employee a predictable working pattern and would need to notify a worker within one month of receiving a request of their decision. If an employer would like to refuse a request, it must be for one or more of the following reasons:
- a burden of additional costs;
- a detrimental effect on the ability to meet customer demand;
- a damaging impact on the recruitment of staff;
- a detrimental impact on other aspects of the employer’s business;
- insufficient work during the periods the worker proposes to work;
- planned structural changes.
If employers fail to follow a formal process, workers may be able to bring claims to the Employment Tribunal. Claims could result in employers being required to reconsider their decisions or compensate the employee (this is likely to be
Preparing for the new legislation
This new Bill passed through the House of Lords on 18th September and should come into effect in 2024. The UK government is currently working in partnership with Acas to produce a new Code of Practice that will provide employees and employers with clear guidance on making and handling requests.
It’s important that employers understand the new right and put policies in place to deal with such requests within relatively short timescales. In light of the changes to agency worker entitlements, recruitment agencies and businesses would need to work together to update their terms on how such requests are dealt with.
Overall, it’s believed that this new legislation will bring happiness and security to workers on unpredictable work contracts, securing them employment that suits their individual circumstances. A happier workforce also tends to increase productivity in the workplace.
