Agency workers to be included in zero-hour contract reforms

Despite warnings that including agency workers in zero-hour contract reforms would be detrimental, the government has gone ahead with their plans.

There are concerns that this move could increase non-compliance and negatively impact accessing critical temporary resources.

At the end of 2024, during the zero-hour reforms consultation period, the Association of Professional Staffing Companies (APSCo) called for agency workers to be excluded, describing current proposals as ‘not fit for purpose’ in the modern world of work.

The APSCo advised that guaranteed hours for agency workers are impractical and unwanted by recruiters, end hirers and workers themselves, warning that the need to offer guaranteed hours is unworkable.

Responding to the recent news, Tania Bowers, Global Public Policy Director at APSCo, said, “The announcement today is both concerning and highly disappointing given the Government’s recognition that skill short remits such as education, health and social care are in dire need of more qualified and temporary resources.

“This news means that highly skilled and highly paid agency workers that are often required at the last minute will be more difficult to place in temporary positions. Schools, for example, cannot guarantee the hours that a supply teacher will be needed, which puts them in a difficult situation where they risk simply not having access to the people they need last minute. The same can be said in health and social care. This will have a detrimental impact on the public who rely on these resources.”

Tania added, “Highly skilled professional contractors are critical to the Government growth plans set out in the Industrial Strategy across technology, engineering, life sciences and net zero targets. The extension of the zero-hours legislation across the whole temporary workforce is over regulation, primarily to close off loopholes that could be exploited rather than the actual risk of exploitation in the professional sector.  Other solutions must be found to the loophole risk to ensure that critical segments of the highly skilled flexible workforce can be excluded to avoid dampening impacts on flexible labour and growth.

“This move will put greater pressure on staffing firms to be the guarantor of workers’ hours which simply isn’t feasible and puts them in a difficult financial position should they be unable to secure the hours agreed.

“A catch-all method to employment regulation doesn’t set the UK up for success in terms of skills growth and is an unfair approach for the recruitment supply chain. The agency worker sector is already well-regulated and will be in an even better position with the introduction of the Fair Work Agency in the legislation. APSCo maintains its view that the Agency Worker Regulations 2010 (AWR) and zero-hour reforms need to exclude highly paid contractors earning multiples of the National Living Wage.”

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