Zero hour contract ban to include agency workers in employment bill

Published On Mar 3, 2025, 7:00 PM

The UK government is introducing reforms in the Employment Rights Bill that will ban 'exploitative' zero-hour contracts for agency workers, ensuring they receive guaranteed minimum hours. The changes will allow agency workers to claim compensation for last-minute shift changes. This amendment arises from union pressures and highlights the need for better protections for a significant portion of the workforce. Business groups are concerned about the impact on flexibility for agency workers, as well as the potential negative effects on employment and growth. These labor reforms also include increased penalties for 'fire and rehire' practices and modifications to sick pay rules.

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The changes to employment laws, especially the focus on improving worker rights, is generally viewed positively by labor markets and may support consumer spending in the long term. However, the concern from business groups regarding flexibility and the potential negative impact on small businesses may lead to short-term instability. Therefore, while underlying worker sentiment may improve, the immediate market reaction could be mixed.

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