The government has set out amendments to its Employment Rights Bill
New rules around employing agency workers will be included in government plans to crack down on “exploitative” zero-hours contracts.
The changes would see employers have to offer agency staff a permanent contract reflecting the hours they regularly work.
It is one of several amendments the government has made to its Employment Rights Bill following consultations with business groups and trade unions.
It is understood the change follow concerns businesses could shift to using agency workers to avoid complying with tougher measures planned around the use of zero-hours contracts.
There are around 900,000 agency workers in the UK, many of which are employed in the hospitality industry.
The British Beer and Pub Association has warned the changes could make it difficult for seasonal hospitality businesses who would be unable to offer agency staff the same hours during quieter periods.
The BBC has reported that agency staff who choose to be on zero-hour contracts will also be eligible for compensation if their shifts are cancelled or changed at short notice.
Further details of the rules have yet to be confirmed but the government plans to work with employers, trade bodies, recruiters and trade unions on the changes.
A government announcement said the plans would “offer increased security for working people to receive reasonable notice of shifts and proportionate pay when shifts are cancelled, curtailed or moved at short notice – whilst retaining the necessary flexibility for employers in how they manage their workforces”.
Other amendments being tabled include an extension of sick pay to workers earning under £123 a week from the first day of their illness.
However, plans to ban employers from contacting staff outside designated work hours have reportedly been dropped.
UKHospitality chief executive Kate Nicholls said it was “critical” that the government continued to work with trade bodies to “get the detail right” on the bill.
Nicholls added: “We understand the government’s objectives with this legislation, but how it achieves those goals must be done in a way that doesn’t damage jobs, businesses and growth.”
A spokesperson for the BBPA said: “While there are some welcome announcements, there remain legitimate concerns around many aspects of the bill. Mandating that those who may want flexible roles have to be offered fixed hours, including agency staff, will mean businesses affected by seasonal demand won’t always be able to offer them work.
“This will cut off opportunities for many who may want short-term work and deny them the chance to work as they please in a sector they’re interested in.
“The beer and pub sector supports more than a million jobs, and we’ll continue to work with government to ensure that new rules don’t inadvertently penalise our fantastic workforce and risk undermining growth.”
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