The UK government is set to introduce a ban on “exploitative” zero-hours contracts, ensuring that agency workers receive a minimum number of guaranteed hours each week.
The changes, part of the Employment Rights Bill, aim to close legal loopholes that allow employers to circumvent regulations by hiring temporary staff.
Under the new rules, agency workers who prefer zero-hours contracts will be eligible for compensation if their shifts are changed at short notice.
The move follows sustained pressure from trade unions, which have argued that thousands of workers remain in precarious employment despite long-term service for the same company.
Agency Workers Included in Zero-Hours Contract Ban
The reforms, expected to be unveiled on Tuesday, represent a significant step in the government’s efforts to improve employment rights.
According to the BBC, the legislation will mandate that agency workers receive contracts guaranteeing a minimum number of working hours each week. However, ministers have yet to determine whether this will be calculated over a 12-week reference period or longer.
With more than 1 million people in the UK currently employed on zero-hours contracts, the amendments seek to prevent businesses from sidestepping employment protections.
Paul Novak, general secretary of the Trades Union Congress (TUC), welcomed the move, stating that agency workers make up a significant proportion of the zero-hours workforce and need protections from bad working practices too.
Unions have long campaigned for agency workers to be covered by the ban, warning that businesses could otherwise exploit a loophole by shifting employees onto agency contracts. Currently, an estimated 900,000 agency workers operate across sectors including hospitality, warehouses, and the NHS.
Business Concerns Over Flexibility and Hiring Impact
Despite union support, some industry leaders have expressed concerns over the potential negative impact on business flexibility.
According to the Recruitment and Employment Confederation (REC), agency work is often chosen specifically for the freedom and adaptability it provides. Kate Shoesmith, REC’s deputy chief executive, warned that legislative changes must not undermine the benefits of flexible employment.
Leading recruitment firms, including Hays, Adecco, and Manpower, have also raised objections.
In a letter to Business Secretary Jonathan Reynolds, they described the new regulations as “unworkable”, arguing that they could reduce hiring levels and lead to delays in work completion. Some business groups remain sceptical, stating that the amendments lack clear implementation details.
The Employment Rights Bill also includes other significant reforms, such as granting bereavement leave for parents who suffer a miscarriage before 24 weeks and extending sick pay to 1.3 million of the UK’s lowest-paid workers.
