On 18 September 2023, the Workers (Predictable Terms and Conditions) Bill reached Royal Assent, becoming the Workers (Predictable Terms and Conditions) Act 2023. For millions of British workers with unpredictable working patterns in the past, including those on zero hours contracts. This means they will soon have the right to make a former application to change their working pattern. The subject has been in consultation for a while. So we are pleased that the government has finally decided to protect worker’s rights.
Whether the new changes affect you as a worker or as a business, you can find more about it further below.
Who does the Act affect the most?
While many companies will have to understand the new regulations, the impact of the new Act will be most felt by businesses that use workers with continuously changing shifts and prefer more stability.
Workers employed on a fixed-term contract of 12 months or less also have the right to request a longer contract than a year or make it a permanent one.
The Workers (Predictable Terms and Conditions) Act 2023 also affects agency workers, enabling them to request predictable working directly to their temporary work agency. If the worker has kept the same role at the same employer for more than 12 continuous weeks, they can apply for a predictable contract to the end user employer.
What will change for workers?
With the new Act, workers can request changes in hours, days of the week or the length for which they are employed. Employers who work shifts that continuously change can ask for a working pattern with more certainty and regularity.
Prior to the Act, employees were required to work in the same role for at least 26 weeks before they had the right to request any changes. With the new Workers Act, they can ask for changes in employment from day one.
How will the new Act impact employers?
In light of the changes, businesses must understand and implement the new regime as soon as possible. This includes drafting policies to deal with workers’ requests in a reasonable timely manner. Employers should respond to a worker’s request for a change one month after receiving the request. If an employer is to reject the formal application, they need to provide a legitimate reason.
Reasons an employer can reject a worker’s request for flexible working could be the following:
- The burden of additional costs
- detrimental effect on the ability to meet customer demand
- detrimental impact on the recruitment of staff
- detrimental impact on other aspects of the employer’s business
- insufficiency of work during the periods the worker proposes to work
- or planned structural changes.
Although it’s expected the new Act will come into effect in September 2024. Businesses should start preparing as soon as possible. Until then, keep an eye on the draft Code of Practice. It should provide businesses and workers with clear guidance on making and handling requests.