7.1. This right will apply to workers who either:
7.1.1. Work under a zero hours contract or “arrangement” or
7.1.2. Work under a contract for a low number of minimum guaranteed hours but work more than those hours in the reference period (see below).
7.2. This will require an employer to offer a minimum hours contract, which will be based on the previous working patterns of the employee, known as the “reference period”. Employers will have to offer workers guaranteed hours, and the hours must reflect the pattern of days and times of working hours within the reference period. The reference period itself will be set by secondary legislation but may be as little as 12 weeks.
7.3. To qualify, a worker does not need to have been employed without a break through the reference period and can have more than one contract during the reference period.
7.4. If the worker accepts the guaranteed hours contract then it appears that the guaranteed hours will commence the next day. The worker has a ‘response period’ in which to reply to agree or otherwise, which begins with the day after the day on which the offer is made, and ends with the specified day which will be set out in regulations.
7.5. Agency workers are often employed on zero hours contracts and at present the Bill does not apply to them. This is likely to change; the government have put forward amendments to the Bill to give agency workers the equivalent rights.
7.6. Whilst employers will be required to offer the minimum hours contract, and to give workers information on their rights, workers will have a right to refuse and will have the opportunity to remain on their current arrangement if they prefer. It appears however that the employer will have to periodically re-offer the right, apparently at the end of each reference period. This obligation will be ongoing for so long as the worker remains on a qualifying contract.
7.7. There will be exceptions, for instance where there is a genuine need, such as seasonal workers.
7.8. Employers are not able to use the opportunity to change any other terms of the contract, the Bill explicitly prevents this.
7.9. The government intends to consult on the measures, and is to set out further details in regulations. Timescales are uncertain, and there are a good number of questions still outstanding, such as the definition of “low hours”, what the response times are, the exceptions to the rule and what the compensation would be at tribunal.
7.10. If all employees qualifying for a guaranteed minimum hours contract accept the offer, the employer could find themselves overstaffed at periods of low demand.
7.11. Failure to comply with the new requirements could result in the employee making a claim to the Employment Tribunal.
7.12. For our HR Protect clients, we recommend you contact your usual adviser for guidance on managing contracts where there are fluctuating work levels.
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