Guaranteed hours reforms could have significant unintended consequences

Industry leaders across the temporary labour market are calling on the government to rethink their guaranteed-hours proposals.

Just last month, the Recruitment and Employment Confederation (REC) called for a simpler and more targeted approach, and now their concerns have been backed up by trade associations and independent experts representing different parts of the temporary labour supply chain.

Leading Experts Sign Joint Letter

These trade associations and independent experts have together signed and submitted a joint letter to the government following its consultation on ‘Ending one-sided flexibility: reform of zero hour and similar contracts’.

The signatories are:

• Association of Labour Providers (ALP)
• Association of Professional Staffing Companies (APSCo)
• Freelancer and Contractor Services Association (FCSA)
• Professional Passport
• Recruitment and Employment Confederation (REC)
• The Employment Agents Movement (TEAM)
• The Employment Status Forum
• The Recruitment Network (TRN)

All of these organisations share the government’s objective of improving fairness at work but are calling for further consideration of how guaranteed-hours reforms would operate for temporary agency workers.

Guaranteed-Hours Reforms: What Are the Concerns?

The main argument is that temporary agency work is very different from other forms of zero-hour employment.

For example, for many agency workers, flexibility isn’t something forced upon them – they have chosen agency work. The signatories warn that applying guaranteed-hours obligations to the sector could:

• Reduce access to flexible assignments.
• Increase costs and bureaucracy.
• Encourage businesses to move towards more exploitative models of engagement.

Chris Bryce, Chief Executive of the Freelancer and Contractor Services Association (FCSA), commented, “Industry leaders from across the supply chain are in broad agreement: these proposals pose a significant risk to the very workers they are designed to protect.

“The Government is right to address the use of exploitative zero-hours contracts in permanent roles. But agency work is fundamentally different, and these rules risk jeopardising flexible work opportunities for people who actively choose that flexibility.

“The objective should be to give people greater security and choice, not inadvertently take choice away. We are urging the Government to look carefully at the evidence and rethink the application of these proposals to agency workers before proceeding.”

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