At Wirehouse, we understand the unique challenges that our clients within the care industry face. With the upcoming changes introduced by the Employment Rights Bill, it’s crucial to prepare for the potential impact on care employers. There are a number of changes that will take effect due to the new legislation, but one of the biggest areas for the care industry to really think about is the change to the law on zero-hour contracts.
Zero-hour contracts have always been a critical tool for care employers, providing the flexibility needed to adapt to varying client needs and workforce availability. There are significant reforms made by the new legislation, aimed at reducing the potential exploitation of zero-hour workers whilst also maintaining that very important concept of flexibility.
This article focuses on what care employers need to know and what to do now, in preparation for the upcoming changes.
What does the new legislation want to achieve and what do I need to know?
The Employment Rights Bill aims to enhance workers' protections including security of hours and pay which is why zero-hour contracts have been targeted.
The legislation will prevent employers from side stepping the law by providing “one-hour contracts” for example, instead of zero-hour contracts. Therefore, the new rules will also protect those who are on low hour contracts but regularly work more hours; “low minimum hour contracts”.
An expectation on employers to offer guaranteed hours
There will be possible tribunal claims for employers who are not offering their staff guaranteed hour contracts to reflect what hours they work over a certain reference period (this reference period is yet to be determined but is likely to be 12 weeks). It is suggested that employers will need to actively offer guaranteed hour contracts following each reference period, for as long as the workers are eligible. The worker may decline the offer if they prefer to remain on their zero or low hour contract (without pressure from their employer to do so). The onus will be on the employee to respond, otherwise it will be deemed a rejection of the employers offer. These new rules place a continuous obligation on the employer to review contracts of this nature and the working patterns and make those offers.
Right to Request a Predictable Work Pattern
Workers who are on a zero-hour contract or have other unpredictable contractual arrangements will have the legal right to request a predictable work pattern after 26 weeks of continuous service.
The impact this may have on care employers
- Increased requests for regular hours, particularly from care workers seeking predictability and financial stability.
- Requests will need to be handled within a specific timeframe. Any refusals must be based on clear, justifiable business reasons.
- Balancing operational demands with these requests may mean care employers need to review their current workforce planning and do so on a regular basis.
Obligation to Provide Minimum Notice
It has also been proposed that there are minimum notice periods for shifts and cancellations of shifts, ensuring workers are given adequate notice of shifts, or compensation if shifts are cancelled without sufficient warning.
The impact this may have on care employers
- As there will be financial penalties for cancellations of shifts, this will mean advance planning of shifts will be crucial.
- Needing to think about how to manage last-minute changes effectively so that operational demands are met by giving the required notice of shifts, particularly when there are any last-minute unexpected absences and how these will be handled.
Record-Keeping and Compliance
Employers will need to maintain clear records of all zero-hour contracts, requests for predictable work patterns, and any related decisions, particularly any refusals. This is with the intention of enhancing transparency and enforcement.
The Impact this may have on care employers
- Needing to update internal policies, contracts, and training materials to ensure compliance.
- Those managers who are responsible for scheduling shifts will need clear guidance from the top, regarding how to handle requests and maintain record-keeping.
Recommendations for care employers, on how to prepare for the changes
- Conduct an Audit
- Identify all workers on zero-hour contracts and assess their working patterns.
- Review how many may be eligible to request predictable work patterns under the new legislation based upon their length of service and when others may be eligible to do so.
- Review how many you may need to continuously be offering guaranteed hour contracts to and put a plan in place on how to keep on top of this.
- Review and Amend Policies and Procedures
- Update employment contracts, staff handbooks, and policies to reflect changes in notice requirements and the right to make such requests. Be clear in regard to offers of guaranteed hour contracts that by ignoring the offers, employees effectively reject them.
- Ensure managers are trained to handle requests for predictable working, identify where guaranteed hour contract offers need to be made and when, and manage shift planning effectively and accordingly.
- Workforce Planning
- Invest in workforce management systems to improve scheduling accuracy which should hopefully reduce the chance of last-minute changes.
- Consider alternative staffing arrangements from the outset where better suited. For example, part-time contracts or contracts that better reflect what hours you will require from someone.
- Prepare for and accept that there may be higher operational costs when the legislation takes effect.
- Communication
- Inform your workforce about the upcoming changes and how this may impact them. Consult with them on their thoughts and how they feel about their current working arrangements so you can gage how many requests may be likely when the legislation comes into effect and also how many may accept or decline offers of guaranteed hours of work.
- Be transparent with staff about what it will mean if they accept guaranteed hours, for example what obligations they will have, if different to now, about them committing to and fulfilling those hours on a regular basis.
- Clear guidance via your policies on how to request predictable work patterns.
Agency Workers
The provisions don’t currently apply to agency workers. However, the Bill does include the power to extend its application to agency workers and a consultation has begun to look at how these measures could be applied to this group. The key question will be whether the responsibility to offer guaranteed hours will fall to the employment agency, or end hirer.
Conclusion
The care industry is reliant on flexibility, but now need to balance the need for this flexibility with fairness towards workers and adherence to the new legislation. We would recommend preparing in advance so that you can ensure your organisation remains compliant while continuing to deliver the high-quality care your clients depend on.
For more HR insights please visit Wirehouse Employer Services’ website here or seek advice by contacting us directly at info@wirehouse-es.com or 033 33 215 005.
