The Government’s ‘Make Work Pay’ plan is seeking to tackle the insecurity faced by those on zero-hours contracts. Specifically, by introducing a new right to guaranteed hours and a contract reflecting the number of hours regularly worked, a right to reasonable notice of shifts – with payment for shifts cancelled or curtailed at short notice – and the opportunity to file a tribunal complaint against employers who fail to meet these requirements.
In a recent consultation, the Department for Business and Trade asked how best to extend the new zero hours contracts measures to agency workers, and whether responsibilities and costs should fall on the end hirer or the agency. As a sector highly dependent on agency staff, it is vital that warehousing makes its voice heard on this critical issue.
The consultation document sets out that an agency worker on a zero hours contract could request a guaranteed hours contract after just 12 weeks, either permanent or for a fixed term. However, the nature of agency work in warehouses makes it impossible to predict or guarantee hours beyond current work requirements. If it comes down to the responsibility of either the end hirer (the warehouse operator) or their agency labour provider, surely the agency with its multiple clients is best placed to guarantee workers’ hours.
In UKWA’s consultation response, we have suggested extending the period after which guaranteed hours must be offered to 9 or even 12 months. This would allow for seasonal peaks and slowdowns, giving a more accurate reflection of average hours worked.
We have also indicated that providing agency workers with notice of cancelled or curtailed shifts would add a further burden for businesses in terms of administrative costs. Any mechanism for such a process must be rigorous, evidence-based and developed in consultation with our sector.
Warehousing and logistics businesses should be exempt from any legislative changes to mandate payment for short notice cancellation of shifts. Our industry already operates on narrow margins and requiring warehousing businesses by law to pay agency workers on cancellation of shifts would be a huge blow.
Indeed, we have pointed out that there are already existing mechanisms, outside of government legislation, to mitigate the impact on agency workers for short notice cancellation. For example, many agencies have a minimum charge per booking, which relates to the number of hours the worker is paid, should their agreed shift be cancelled or curtailed. These industry norms are baked into most contracts between hirers and agencies.
The Government consultation, which comes after the publication of its Employment Rights Bill in October, recognises that “for a lot of businesses, using agencies is vital for remaining agile and flexible in a competitive market.”
For our sector, agility and flexibility is exactly the point. Warehousing operations are subject to peaks, driven by customer demand, and must be able to react to changing situations at short notice. Our response makes this position abundantly clear.
Clare Bottle
UKWA, CEO
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