Workers (Predictable Terms and Conditions) Bill

Louie French Excerpts

3rd reading
Friday 24th March 2023 Commons Chamber

[Scott Benton (Blackpool South) (Con)]

I beg to move, That the Bill be now read the Third time.

I am delighted that we are here today to take a further step forward towards introducing a new right for workers to request a more predictable working pattern. Throughout the passage of the Bill I have spoken of the importance of introducing this new right to tackle one-sided flexibility. Although zero-hours contracts are an important part of the UK’s flexible labour market, the 2017 Taylor review of modern working practices found that workers on zero-hours contracts, as well as agency and temporary workers, struggle when flexibility is one-sided in an employer’s favour.

Some employers misuse flexible working arrangements by scheduling or cancelling shifts with very little notice, leading to insecurity of hours and income for workers or, in the case of temporary agency workers, dismissal at short notice. Short-notice changes to working patterns can be hugely disruptive to workers’ lives, for example when they are juggling caring or childcare responsibilities. One-sided flexibility can also create an unfair imbalance of power between workers and their employers, leaving workers afraid to ask their employer for more predictable terms and conditions, out of fear of being dismissed or denied future shifts. One-sided flexibility is particularly pressing at a time when so many workers with unpredictable working patterns are feeling the pressure of household living bills rising so acutely.

The introduction of a new right to request a predictable working pattern will empower workers to start a conversation with their employer about their working patterns. It will not only benefit zero-hours contract workers, because agency and temporary workers will also be able to take advantage of the new right. A qualifying worker will be able to make requests if their existing working pattern lacks predictability in the hours or times they work, or if it is a fixed-term contract for less than 12 months.

The Bill will not only benefit workers. On Second Reading my hon. Friend the Member for South West Hertfordshire (Mr Mohindra) aptly described the right to request a more predictable working pattern as a “win-win” for workers and employers. The new right will boost worker satisfaction and productivity, and allow employers to retain skilled staff. It is vital that we maintain the flexibility that zero-hours contracts facilitate for businesses and workers, which is why workers will be able to choose to continue working on a zero-hours contract, or in another form of less predictable work, if that is what works best for them.

[Mr Louie French (Old Bexley and Sidcup) (Con)]

Does my hon. Friend agree that in certain cases, particularly for the likes of students, for example, it is more desirable to have greater flexibility regarding when they can work around their studies?

[Scott Benton]

My hon. Friend is entirely correct. Whether it be for students who perhaps have different working patterns and ability to work shifts compared with other workers, or the rest of the general workforce, zero-hours contracts are here to stay. They are an important part of the flexible working market, and rightly so, but they have to work not only for the employer but for the worker. This positive step forward allows those who are working flexible hours to request a more predictable working pattern. As I will explain, the business or employer in question does not necessarily have to accept the request, if for example it is too burdensome on the business. The Bill is a moderate and positive step forward that works for both employer and worker.

The right to request a more predictable working pattern will function in a similar way to the right to request flexible working. For example, an employer will be able to refuse a request for a more predictable working pattern on specific statutory grounds similar to those established for flexible working. I appreciate how important it is to balance new rights for workers with their impact on businesses; these grounds will act as a safeguard, ensuring that employers do not experience disproportionate burdens. My Bill will introduce that important new right and ensure that it can be properly enforced.

The clauses set out the eligibility criteria for the new right, and ensure that as many workers as possible who have an unpredictable working pattern can benefit from it. All workers who have worked for their employer for a set period before making their application will be eligible. That period will be specified in regulations, but is expected to be 26 weeks. Given that my Bill targets workers with unpredictable working patterns, they will not be required to have worked for their employer continuously during that period.

Specific provisions will be made for agency workers, given the unique way that their working relationship with their employer functions. For example, agency workers who make applications directly to hirers will be required to have worked for their hirer for at least 12 weeks continuously during the proposed 26-week period. That replicates a provision in the Agency Workers Regulations 2010 that states that after 12 weeks’ continuous service, an agency worker will gain entitlement to the same set of employment rights that they would have had if they had been recruited directly. That ensures that workers cannot use the right to request a more predictable working pattern to circumvent the Agency Workers Regulations 2010 and gain entitlement to additional employment rights before they have worked for 12 continuous weeks.

Employers’ responsibilities are also clearly set out. That supports employers when they receive a request and ensures that workers know what they should expect from their employer. Employers must deal with requests in a reasonable manner and notify the worker of their decision within a month. My Bill details the grounds on which workers may make a complaint to an employment tribunal. That protects workers if their employer does not consider their request in a reasonable manner, wrongly treats the application as withdrawn, dismisses or treats a worker poorly because of their request, or rejects an application on the basis of incorrect facts.

Workers will be permitted to make two requests for predictable working per year. That recognises that workers’ and businesses’ circumstances can change. This mirrors the number of flexible working requests that will be allowed under the Employment Relations (Flexible Working) Bill introduced by the hon. Member for Bolton South East (Yasmin Qureshi). Together, my Bill’s clauses will create an important new right to request a more predictable working pattern, and will carefully balance the needs of workers in unpredictable work and their employers.

I thank the Minister for confirming the Government’s continued support for the Bill, which of course delivers a Conservative election manifesto pledge. I am delighted to see such broad support for my Bill from across the House, and I thank all hon. Members who share my desire to ensure that the Bill proceeds to the other place, so that we can take a positive step forward for working people.

--- Later in debate ---

[Kevin Hollinrake]

I start by thanking my hon. Friend the Member for Blackpool South (Scott Benton) for all his work. He has been a delight to work with all the way through and I have been delighted to support his Bill through its various stages. I reiterate the Government’s support for the Bill.

It has been encouraging to observe the support for the Bill from across the House. I was pleased to hear that reflected once again in this debate, including by the shadow Minister, the hon. Member for Bradford East (Imran Hussain), who represents part of the fine city of Bradford, in my county of Yorkshire.

As my hon. Friend the Member for Blackpool South pointed out, zero-hours contracts are an important part of the UK’s flexible labour market, for both employers and individuals who may need to balance work around other commitments. We believe they play an important role, and 64% of people surveyed said they do not want more hours and that they are happy with the basis of their current contracts. As my hon. Friend the Member for Crewe and Nantwich (Dr Mullan) pointed out, Labour is determined to take that option away from people, which once again illustrates that the Government believe in freedom of choice while the Opposition believe in state diktat.

Around 3% of workers in the UK workforce are on zero-hours contracts and such contracts may offer many of those individuals the kind of flexibility they want, but, of course, we are determined to tackle unfair working practices used by a small minority of employers. I endorse the comments made by my hon. Friend the Member for Newbury (Laura Farris), who speaks in this House with such authority on employment matters, given her background. Many of those employers take advantage of what she describes, quite rightly, as “a grey zone”. Workers may be left waiting on standby for work that never materialises, unsure whether they will receive the hours they need to pay their bills.

We have already made significant progress in bringing forward measures that support individuals on zero-hours contracts and in low-paid work. In 2015, we banned exclusivity clauses in zero-hours contracts; in December 2022, we extended the ban to workers who have a guaranteed weekly income equivalent to or below the lower earnings limit of £123 per week; and on 1 April, we will increase the national living wage by 9.7%, to £10.42 per hour.

[Mr French]

In reference to the comments made by the shadow Minister, does the Minister agree with me that the Labour party’s words on sticking up for workers are rather hollow, particularly when they support the Labour Mayor of London’s ultra low emission zone expansion and tax rise, which will impact over 850,000 drivers in London and have been described as “anti-worker” by Unite the union?

[Kevin Hollinrake]

My hon. Friend is a fine champion on that issue; I would describe the measure as anti-worker and also anti-business, particularly at a time when we are all seeing cost of living challenges. It is simply the wrong measure to take and I applaud him for his constant campaigning on it.

The Bill in the name of my hon. Friend the Member for Blackpool South represents a further step towards addressing one-sided flexibility, as he says. In 2018, the Government consulted on the right to request predictable working and in 2019 we committed to introducing a right to request a more predictable contract in our manifesto. That militates against the hon. Member for Bradford East’s argument that we have suddenly discovered this concern. We have always committed ourselves to legislating in this area.

The new right to request a more predictable working pattern will apply to all eligible workers, not only those on zero-hours contracts, meaning that a wide range of workers who have unpredictable working conditions will benefit, including temporary workers, agency workers and workers with non-guaranteed hours. Crucially, that is a right to request more predictable hours, not a right to insist on them, because we also need to look after the interests of businesses in this conversation.

My hon. Friend’s Bill includes a list of eight specific grounds on which any employer may decline a request, similar to those established for the existing right to request flexible working—for example, if the costs of providing a worker with a more predictable pattern would be too burdensome, or if accepting a request would have a detrimental impact on the ability to meet customer demand.

The Bill forms part of a wider package of six private Member’s Bills on employment rights that the Government are supporting. I pay tribute to the businesses and business representative groups that have supported them, despite the obvious impact on businesses—if hon. Members have read the impact assessment, they will know the additional impact on business is £16.9 million, at a difficult time for them, so we should pay tribute to businesses that are willing to take on these extra duties.

The hon. Member for Bradford East talked about a ban on zero-hours contracts. I gently ask whether he is doing that in the full and certain knowledge of the costs on business, because I have not seen a figure from Labour to say what would be the cost to business of doing that. That is a reasonable concern that businesses may have about the extra costs of doing business under a potential Labour Government.

Taken as a package, these Bills will deliver on our 2019 manifesto commitments to enhance workers’ rights and support people to stay in work. They will help new parents, unpaid carers and hospitality workers.

Before I close, I want to thank the officials who have worked on this Bill: Sasha Ward, Bex Lowe, Lizzy Blakeman, Mel Thomas, Sarah Boulton-Jones, Louis Ariss, Laura Robinson, Richard Kelly, Adrienn SzNagy, Rose Jefferies and Dan Spillman and, from my private office, Cora Sweet. I commend the Bill to the House.