Workers (Predictable Terms and Conditions) Bill

Scott Benton Excerpts

2nd reading
Friday 3rd February 2023 Commons Chamber

[Scott Benton (Blackpool South) (Con)]

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

I am pleased that we have time to debate this important issue in the Chamber. I know that many hon. Members in the Chamber will have a personal interest in this area and am grateful for their participation. Zero-hours contracts are an important part of the UK’s flexible labour market, both for employers when there is not a constant demand for staff and for individuals who need to balance work around other commitments such as childcare and study. However, the 2017 Taylor review of modern working practices found that workers on zero-hours contracts, as well as agency workers and temporary workers, struggle where flexibility is “one-sided” in an employer’s favour. Some employers misuse flexible working arrangements to create unpredictability and insecurity of income, and there is a reluctance among some workers to assert basic employment rights. That one-sided flexibility means that workers need to be available to their employer with absolutely no guarantee of work. Employers can also schedule or cancel shifts with little notice, leading to insecurity of hours and income for workers—or, in the case of temporary workers, dismissal altogether at short notice.

To address one-sided flexibility, the Taylor review recommended that the Government should create a new right to request a contract with guaranteed hours for zero-hours contract workers. The successful passage of my Bill would create a new right for eligible workers to request a more predictable working pattern.

[Nickie Aiken (Cities of London and Westminster) (Con)]

I welcome my hon. Friend’s private Member’s Bill, because it is incredibly important to give people on zero-hours contracts the security of knowing that they will have protected hours. Does he agree that, as we are trying to encourage the over-50s back into the workplace, the Bill may go some way to giving them security over their hours and pay for the work that they do?

[Scott Benton]

I thank my hon. Friend for her intervention. She is a brilliant champion for her constituents in the Cities of London and Westminster. Of course, the nature of the economy in central London means that, often, people will be in the retail, hospitality and the tourism industry with insecure work. I thank her for championing the Bill. The point that she makes regarding older people in employment is important. The Government are actively looking at that. I hope that they continue to press the issue to ensure that we can address labour shortages by widening the pool of potential people to take those vacancies.

The new right would give workers who would like more certainty the ability to request a more predictable work pattern that reflects the hours or times that they work. A qualifying worker would be able to make an application to change their existing work pattern if it lacked predictability in terms of the hours or times they worked, or if they have a fixed-term contract for less than 12 months. The Bill would ensure that workers and employers retain the benefits of zero-hours contracts and other forms of atypical work. Of course, workers who are content to work more varied hours will continue to be able to do so.

Many individuals who work unpredictable patterns often experience an imbalance of power with their employers, which leaves them afraid to ask for more fixed conditions out of fear of being dismissed or denied future shifts. The Bill would address that unfair imbalance of power, empowering and encouraging workers to talk to their employer about their contract, safe in the knowledge that starting the conversation would not result in any detriment whatsoever to the worker. Workers will be better able to secure employment that suits their individual circumstances, helping them to be more satisfied at work and less stressed around the lack of predictability of their hours and income.

[Kerry McCarthy (Bristol East) (Lab)]

It is good that we have cross-party support on this issue as well. It is one thing for an employee to have a right, but as we have seen, quite often employers who do not want to give their employees those rights and treat them well have ways of getting around that; they will find an excuse to dismiss the employee and take on somebody who might be prepared to be more flexible. How does the hon. Gentleman envisage that the safeguards and rights under this Bill will be genuinely enforced? I would suggest trade union membership as a pretty good start.

[Scott Benton]

I thank the hon. Lady for her intervention and I will get to that section of my speech in a couple of minutes. She does great justice to the people in her constituency who work on zero-hours contracts by raising that important point. The Bill introduces a right to request a more predictable working pattern and the process employers have to follow is clearly outlined to ensure that there is some certainty when employees request that their contract is changed and that their employer deals with them seriously and appropriately.

The Bill helps to support the income security of workers at a time when many are feeling increased cost of living pressures. It will not only benefit workers; businesses will reap the rewards of having a more engaged and happier workforce. The rights introduced through my Bill will apply to all eligible workers, including agency workers, not only those employed on zero-hours contracts; it will apply to the wide range of workers who have unpredictable working conditions, including temporary workers, agency workers and workers with non-guaranteed hours.

Workers must have worked for their employer for a set period of time before an application can be made. This period will be set out in regulations; I am sure the Minister will expand on that in his remarks, but it is expected to be 26 weeks. The worker only needs to have been employed with their employer at some point during the month before that period and to be working again for the employer when the application is made. Given that the Bill targets workers with unpredictable working patterns, they are not required to have worked for their employer continuously.

The same criteria will apply to agency workers applying to temporary work agencies. 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 26-week period. This replicates the provision in the Agency Workers Regulations 2010 which states that after 12 weeks’ continuous service an agency worker will gain entitlement to the same set of employment rights as if they had been recruited directly. It ensures that workers cannot use the right to request a more predictable contract to circumvent the agency workers regulations and gain entitlement to additional employment rights before they have worked those 12 continuous weeks.

Once a worker has made their request, the employer will be required to notify them of their decision within one month. An employer will be able to turn down a request for more predictable conditions on specific statutory grounds, similar to those established for the existing right to request flexible working. That will help to ensure that businesses are not unfairly burdened by the new right, for example if the costs of providing a worker with a more predictable pattern would be too burdensome at the time.

Workers will have the option to complain to an employment tribunal if their employer does not handle the request in a reasonable manner, wrongly treats the request as withdrawn, dismisses or treats the worker poorly because of their request, or rejects the application on the basis of incorrect facts. We assume, however, that most declined requests will be handled informally and will not give rise to an employment tribunal claim.

I thank officials at the Department for Business, Energy and Industrial Strategy for their assistance with drafting the Bill and the arrangements for today. This area has broad cross-party support: indeed, it was included in the manifesto I stood on and the Liberal Democrats and Labour made similar commitments on zero-hours contracts in their manifestos. I hope that Members on both sides of the House share my desire to ensure that the Bill succeeds. As you will know, Mr Deputy Speaker, there is a certain fragility, to say the least, that accompanies the passage of private Members’ Bills through the House, and I would therefore like to navigate this process with the support of Members on a cross-party basis.

This Bill is a golden opportunity to bring about real change on the pressing issues of atypical contracts and one-sided flexibility, at a time when insecurity of pay and hours is particularly pressing. I hope that Members will be able to support it.

--- Later in debate ---

[Scott Benton]

With the leave of the House, I thank Members for their contributions today. In particular, my hon. Friend the Member for Devizes (Danny Kruger) as ever made a thoughtful contribution, and I agree wholeheartedly with his comments about the need to utilise the experience, skills and potential of British workers, rather than automatically reaching for this lever of unskilled immigration and workers from overseas. I thank the hon. Member for Bradford East (Imran Hussain) for signalling the support of the official Opposition for my Bill. There is also the brilliant support from the Government, particularly the Minister and his private team, who have been incredibly helpful over the past few weeks and alleviated some of my stress with their technical guidance on some of the finer points of the Bill. That has been greatly appreciated.

I know that my fellow Thatcherite, my hon. Friend the Member for Christchurch (Sir Christopher Chope), is keen to introduce his Bill, so I will keep my remarks short. Suffice it to say, I hope that Members on both sides of the House can agree that this important piece of legislation will give workers struggling with unpredictability in their working lives a way of addressing that, by empowering them to discuss their working conditions with their employer to see whether they can gain more predictability in their hours and income. I commend the Bill to the House.

Question put and agreed to.

Bill accordingly read a Second time; to stand committed to a Public Bill Committee (Standing Order No. 63).

Workers (Predictable Terms and Conditions) Bill

Scott Benton Excerpts

Committee stage
Wednesday 8th March 2023 Public Bill Committees

[The Chair]

With this it will be convenient to consider the following:

Clauses 2 to 4 stand part.

That the schedule be the schedule to the Bill.

[Scott Benton (Blackpool South) (Con)]

It is a pleasure to serve under your chairmanship, Sir Robert. I am delighted that we are here today to take another step towards introducing a new right for workers to request a more predictable working pattern.

The 2017 Taylor review of modern working practices found that workers on zero-hours contracts, agency workers and temporary workers struggle where flexibility is one-sided in their employer’s favour. Some employers misuse flexible working arrangements to create unpredictability and insecurity of income, and some workers are reluctant to assert their basic employment rights. To address the issue of one-sided flexibility, the Taylor review recommended that the Government create a new right to request a contract with guaranteed hours for zero-hours contract workers.

My Bill will introduce a new right for workers to request a more predictable working pattern. A qualifying worker will be able to make an application to change their existing work pattern if it lacks predictability in terms of the hours or times they work, or if it is a fixed-term contract for less than 12 months.

The right will apply to all eligible workers, including agency workers—not only those employed on a zero-hours contract. That will ensure that the right will benefit a range of workers with unpredictable working conditions, including temporary workers, agency workers and workers with non-guaranteed hours. Workers must first have worked for their employer for a set period before they make their application. This period will be set out in regulations, but it is expected to be 26 weeks. A worker needs only to have been employed with their employer at some point during the month before that period, and to be working again for their employer when the application is made. The same criteria will apply to agency workers and those working on behalf of temporary work agencies. 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 26-week period.

Once a worker has made their request, their employer will be required to notify them of their decision within a one-month timeframe. An employer will be able to turn down a request for a more predictable working pattern based on specific statutory grounds, similar to those established for the existing right to request flexible working. That will help to ensure that businesses are not unfairly burdened by the new right—for example, if the cost of providing the worker with a more predictable working pattern would be too burdensome on the business. Workers will have the option to complain to an employment tribunal if their employer does not handle the request in a reasonable manner, wrongly treats the request as withdrawn, dismisses or treats a worker poorly because of their request, or rejects the application on the basis of incorrect facts.

I am delighted that the Bill has support from the Government and from Opposition parties. We are keen to ensure that it can progress through the House quickly so that this important new right for workers can be introduced. I will now discuss the detail of the four clauses and one schedule, which will make new provisions in part 8A of the Employment Rights Act 1996.

Clause 1 inserts a new chapter into part 8A of the Employment Rights Act. These sections introduce the right to request a more predictable working pattern for non-agency workers. Section 80IA provides that a worker may apply for

“a change in terms and conditions”,

while section 80IB provides that a worker can apply only if they were

“employed by the same employer”

at some point during the month immediately before the prescribed period, ending with the making of the request. The length of that period will be set out in the regulations.

Section 80IC sets out what the duties of an employer are when receiving requests. It must deal with the request in a reasonable manner and notify the worker of its decision within one month. Section 80ID allows a worker to make a claim to an employment tribunal where the employer has not complied with its obligations, and section 80IE sets out the remedies that an employment tribunal can award if the claim is successful.

Clause 2 introduces the right to request a more predictable working pattern for agency workers. It inserts chapter 3 into part 8A of the Employment Rights Act 1996. A number of the provisions mirror those in clause 1, so I will highlight only those sections that differ materially from clause 1.

Section 80IF provides that an agency worker may make a request to either a temporary work agency

“with which the agency worker has a contract to perform work or services personally”

or a hirer under whose supervision and direction they are working. Section 80IG requires that workers making an application to a temporary work agency must have had a contract with the agency at some point in the month immediately before a period prescribed in the regulations. Workers making an application to their hirer must have worked in the same role with the same hirer continuously for 12 weeks in the period specified in the regulations.

[Grahame Morris (Easington) (Lab)]

I congratulate the hon. Gentleman on introducing the Bill, which is a welcome step in the right direction. I am aware of the figures for the number of workers who are on zero-hours contracts, but does the hon. Member have a figure for the number of workers who would be covered by the Bill?

[Scott Benton]

I do not have the figures at hand, but I will gladly work with the Minister’s private office to see whether we can obtain them.

Using experience from my own constituency, Blackpool South, a large number of people work on zero-hours contracts in the leisure and hospitality industry. Anecdotally, from speaking to those businesses, I believe that several hundred constituents of mine would have the legal right to request a more predictable working pattern. If we extrapolate from that across the country, we are no doubt speaking about potentially millions of workers who could benefit from this. I thank the hon. Member and his party for their support on Second Reading.

Section 80II sets out the circumstances in which requests must be considered after an application has been made, but before a decision has been reached, the contract that the agency worker has with the temporary work agency comes to an end, or the agency worker ceases to work under the direction of the hirer.

Clause 3 inserts chapter 4 into part 8A of the Employment Rights Act 1996. It makes provision to ensure that workers cannot make more than two requests in any 12-month period. That ensures that the policy is in line with those on flexible working, which also permits up to two requests per year. It also makes provision to ensure that workers cannot make a request for either flexible working or a more predictable working pattern if they have another request in progress.

Clause 4 is a straightforward measure that addresses the extent of the Bill, makes provision for commencement and provides the short title of the Bill. The schedule contains a list of amendments to other employment legislation that will be required to ensure that this measure is effective and does not adversely affect existing legislation. That includes provisions to ensure that there is legal protection for any worker who is penalised by their employer because they have tried to exercise their new right to make those requests, and for an employee who is dismissed as a result of doing so. There is also provision to deal with the potential passage through Parliament of the Employment Relations (Flexible Working) Bill at the same time as this Bill.

[Grahame Morris]

It is a pleasure to serve under your chairmanship, Sir Robert. I congratulate the hon. Member for Blackpool South on introducing the Bill and explaining the provisions in such an eloquent and articulate fashion. It is apt that we are considering the Bill on International Women’s Day, as it is women who are disproportionately affected and victimised by poor employment practices, and subjected to insecure employment. I welcome the Bill for that reason and a number of others.

My earlier question to the hon. Member was based on some family experiences. My eldest son was working in retail in the north-west. He was in the category where he did not have a zero-hours contract, but he did not have a secure, specified number of hours. Before Christmas, he was expected to work 60 hours a week. Once the peak of demand had subsided, the guaranteed hours fell substantially. However, he could not go to his landlord and say, “Well, I have had only 20 hours this week, so is it okay if I give you only half my rent?”

The issue affects many hundreds of thousands of workers, and this is an important step forward. I welcome the Bill, because it gives workers on atypical contracts, especially zero-hours contracts, more predictable and stable working hours. It gives people a greater say over when, where and how they work. It is right that the Government address one-sided flexibility, which inevitably benefits employers, and often forces employees to put their lives on hold when they are called up at short notice for shifts. Not having a secure employment also has implications for any kind of hire purchase debt, such as mobile phone contracts.

It will probably come as no surprise to Conservative Members that I support the abolition of zero-hours contracts altogether. I would welcome a comprehensive employment rights Bill that would provide statutory protection against all forms of poor employment practices. Nevertheless, notwithstanding my reservations, I welcome the intention of the Bill and I am pleased to support the hon. Member for Blackpool South today.

--- Later in debate ---

I look forward to continuing to work closely with my hon. Friend the Member for Blackpool South to support the passage of his Bill. I conclude by extending particular thanks to you, Sir Robert, for your excellent chairing.

[Scott Benton]

I begin by thanking you, Sir Robert, for your chairmanship. I thank every Member who has given their time to serve on this Committee. In particular, I thank the hon. Member for Easington for his comments. He mentioned the irregularity experienced by some on zero-hours contracts and its detrimental effect on their financial stability. That should be at the forefront of everyone’s minds, given the considerable challenges that many of our constituents face with the cost of living at the moment. That is one very good reason why this Bill is progressing through the House.

I also thank the hon. Member for Rutherglen and Hamilton West, who is a fantastic advocate for her constituents. I think she probably speaks more often in this House than any other Member, apart from the hon. Member for Strangford (Jim Shannon). I am pleased to see her here. She made a particularly good point about workers on zero-hours contracts experiencing inflexibility with childcare, with the added pressure and stress of trying to juggle their daily routine, family, finances, work-life balance and so on. If this Bill does nothing else, I hope it will help those struggling with childcare.

I also thank the Minister for his brilliant support and extend that thanks to those in his private office, who have been extremely helpful over the last few weeks. In closing, I reiterate the importance of this Bill and I hope that it can progress through the House quickly.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clauses 2 to 4 ordered to stand part of the Bill.

Schedule agreed to.

Bill to be reported, without amendment.

Workers (Predictable Terms and Conditions) Bill

Scott Benton 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 ---

[Scott Benton]

With the leave of the House, I would like to thank all hon. Members for their contributions. My hon. Friend the Member for Newbury (Laura Farris), with all her knowledge and experience in this particular area, gave a characteristically compelling speech in favour of the Bill. She was entirely correct to shine a light on some of the murkier practices that I am afraid are out there on zero-hours contracts.

My hon. Friend the Member for Crewe and Nantwich (Dr Mullan) is a superb advocate for blue-collar Conservatism and articulated that, as Conservatives, we can advance workers’ rights—and rightly so—while also recognising that both the employer and the worker are often quite happy with the existing arrangements around zero-hours contracts. I was interested to hear him ask how many Labour-run councils across the country actually utilise zero-hours contracts.

I am afraid that in 2020, at the height of covid, Labour-run Blackpool Council in my own constituency dismissed dozens of zero-hours contract workers who worked in leisure centres. The circumstances around their dismissal left a particularly nasty taste in the mouth at the height of a pandemic when those families were particularly struggling. I am also interested to hear that protecting such workers remains a Labour manifesto commitment, but I suggest that the hon. Member for Bradford East (Imran Hussain) communicates to Labour council leaders around the country that they need to up their game and practice what they preach on this issue.

I would, however, like to thank the hon. Gentleman for his support throughout the passage of the Bill. He alluded to the fact that my constituency is particularly deprived, given its reliance on the tourism and leisure sectors. My constituency will probably benefit from the Bill more than most, given the higher number of zero-hours contracts in the tourism industry in Blackpool. I know his constituency well, having grown up very close to it, and I know that his constituents will also disproportionately benefit from the Bill due to the specific labour conditions in and around Bradford.

As ever, I would like to place on record my considerable thanks not only to the brilliant Minister, but his fantastic private office team who have been an absolute joy to work with throughout the passage of the Bill. The Minister rightly articulated that it is this Conservative Government who have taken so many steps over the last 13 years to improve workers’ rights, not least delivering on this private Member’s Bill, which, as the Minister articulated, was a manifesto commitment of this party. I am always proud to defend this Government’s record in my constituency, not least on the way we have supported working people and helped to take so many of them out of poverty since 2010. No doubt the Bill will be a further step on that journey.

I am pleased to have had the opportunity to promote the Bill on Third Reading. I commend it to the House.

Question put and agreed to.

Bill accordingly read the Third time and passed.