Workers (Predictable Terms and Conditions) Bill

Wera Hobhouse Excerpts

2nd reading
Friday 3rd February 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kevin Hollinrake)]

I thank my hon. Friend the Member for Blackpool South (Scott Benton) for proposing this important Bill, and I thank all hon. Members who have spoken on this subject. I am pleased to say that the Government support the Bill and are committed to ensuring that the UK is the best place in the world to start and scale a business—a phrase hon. Members will hear a lot more, after the Business Secretary’s recent speech from Davos about scale-up Britain, which is music to my ears. To do that, we need a strong and flexible labour market that supports participation and economic growth.

I would like to take a little time to talk about the Bill before addressing some points raised by hon. Members on both sides of the House. It is good to see cross-party support, for the third time today. Unlike the shadow Minister, we believe that zero-hours contracts are an important part of the UK’s flexible labour market, both for employers that do not have a constant demand for staff and for individuals who need to balance work around other commitments such as childcare and study. Around 1 million individuals are on zero-hours contracts—around 3% of the UK workforce.

The Government are keen to ensure that everybody can enjoy the benefits of flexible working. We are determined to tackle unfair working practices, such as the issue of one-sided flexibility where workers have to be available to their employer, with no guarantee of work. Employers may schedule or cancel shifts with little notice, leading to insecurity of work and income. I declare my interest, because my daughters are in a similar situation—one is of school age and works at the local pub, and that has happened to her. To be fair, a zero-hours contract works for her to provide flexibility from her side, too.

We recognise that receiving unpredictable and varying levels of income each month can make it difficult for some workers to meet the cost of rent, mortgage and household bills, especially during a cost of living crisis. My hon. Friend’s Bill will allow workers to request more predictable working arrangements, addressing the issue of one-sided flexibility, while ensuring that workers are able to continue working on a zero-hours contract or another form of non-guaranteed hours or temporary contract, if that is the type of arrangement that works best for them.

[Wera Hobhouse (Bath) (LD)]

Does the Minister agree that it is important that employers feel that there is loyalty to their companies and loyalty to the work that the employee is doing? It should very much be a win-win.

[Kevin Hollinrake]

I agree entirely. That is what modern employers are looking for. One of the biggest pressures that employers are facing is recruiting and retaining people. This is another measure where people can demonstrate that the workplace is fairer and more flexible, which should attract more people back into it.

The Bill will allow individuals and businesses to strike the right balance between flexibility and job security. Workers will be empowered and encouraged to start conversations with their employers about their work patterns, with the confidence that starting such a conversation will not result in detriment. We expect that employers will benefit from the new right, too—the point that the hon. Member for Bath made—through improved worker satisfaction and productivity. By allowing employers to retain skilled staff as workers, those workers will not have to look for a new role in order to secure a working pattern that meets their needs.

Facilitating higher productivity, both through this measure and the other five private Members’ Bills that we are supporting, will help to drive higher employment, wages and economic growth. As my hon. Friend the Member for Blackpool South has explained, the right will function in a similar way to the existing right to request flexible working. An employer will be able to refuse a request for more predictable working patterns on specific statutory grounds similar to those established for flexible working. We know how important it is to balance new workers’ rights with the impact on businesses, and those grounds will ensure that employers do not experience disproportionate burdens.

The Government consulted in 2018 on the right to request a more predictable contract, and the vast majority of respondents agreed with the creation of a right to request a more predictable working pattern.