The application of zero-hours contracts measures for agency workers

In the recently published Employment Rights Bill, the government is introducing measures to tackle one-sided flexibility in zero-hours contracts.

It plans to do this through two measures:

• a right to guaranteed hours with a contract that reflects the number of hours regularly worked
• a right to reasonable notice of shifts with a right to payment for shifts cancelled or curtailed at short notice.

We’d like to gather your views on the government’s consultation that is specifically looking at the application of these two measures to agency workers. We are seeking the views from members of HR and payroll to provide a response to our surveys on behalf of your organisation or as an individual. 

We need to hear from you on the following:

• Who should be responsible for offering agency workers guaranteed hours?
• Whether the offer of guaranteed hours should come from the agency or the end hirer – the latter can be applied to NHS organisations.
• Whether the government should legislate to ensure that agencies can recoup costs from end hirers for short notice or if this should be dealt with by contractual arrangements.
• If end hirers should be required to pay a transfer fee or use an extended hire period if there is a requirement to offer guaranteed hours to agency workers.
• Whether the employment agency and or end hirer should be responsible for providing reasonable notice to agency workers.
• Who should be responsible for short notice or curtailment payments?

More information on the consultation 

As with most other aspects of the Employment Rights Bill, the effective date for these provisions is not confirmed. However, they are not expected to come into force before Autumn 2026. 

The consultation is set out in two parts.

Part one of the consultation 

Guaranteed hours 

The employment rights bill creates a new obligation for employers to offer guaranteed hours to certain workers who are on a zero-hour contract or have a low number of hours guarantee in their contracts. Employers will be required to provide an eligible worker guaranteed hours after 12 weeks that should reflect the hours that the agency worker has regularly worked over the 12-week reference period.

The government is seeking views on whether the responsibility for offering workers guaranteed hours should fall to (option one) the employment agency or (option two) the end hirer.

Transfer fees to hiring companies (temp to perm) 

The consultation is also seeking views regarding transfer fees. This relates to agency workers who accept guaranteed hours offered from the end hirer that results in switching their contract from the agency to a contract with the end hirer. Under current legislation the end hirer would be required to pay a transfer fee to the agency or opt to pay for an extended period of hire. 

Part two of the consultation 

Reasonable notice of shifts and payments for shifts cancelled or curtailed at short notice 

The government is legislating the requirement for employers to provide eligible workers with reasonable notice of shifts and notice of changes to shifts. It will also prevent employers from scheduling shifts at the last minute in order to avoid paying for cancelled shifts. 

It intends to give workers (this includes agency workers): 

• greater certainty on when they will be working and the number of hours they will be working
• the ability to plan finances and their lives more easily
• more notice to plan travel, childcare and other work-related arrangements 
• the ability to balance multiple jobs. 

Payment for short notice cancellation and curtailment of shifts 

To address the issue of short notice for shift cancellation or curtailment of shifts from end hirers or employers, the government will require employers to make a payment to agency workers if this happens. 

This should encourage and incentivise end hirers or employers to plan effectively and prevent the need to cancel shifts at short notice. This also avoids agency workers bearing all the financial risk of unforeseen circumstances.

Access the consultation on the GOV.UK website.

Future consultations 

At a later date, the government will consult on the implementation of these two applications more generally.  The government will also consult on what constitutes regular hours and how employers should calculate the guaranteed hours to offer. 

Additionally, the government is planning to repeal the workers predictable terms and conditions Act 2023, which would have brought in a right to request a predictable working pattern which could be turned down by the employer.