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Zero-Hour Contract Rights Extended to Agency Workers: Potential Positive Impact on Company Culture? 

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Recent amendments to the Employment Rights Bill have introduced significant changes to zero-hour contracts, ensuring greater protections for agency workers.  

Among these amendments is the obligation for employers to offer guaranteed hours contracts to workers who have demonstrated regular working patterns over a defined period.  

These new measures will not only improve job security, but also enhance worker safety, by reducing uncertainty and exploitative practices in the workplace. 

predictability and reduced workplace stress 

  • Reduced stress and anxiety due to last minute shift changes and unstable incomes 
  • Improve quality of life by maintaining a healthier work-life balance. 
  • Avoid fatigue-related risks for a safer more productive work environment.  

One of the major challenges associated with zero-hour contracts has been the unpredictability of work schedules. Employees often experience stress and anxiety due to last-minute shift cancellations or sudden changes, leading to unstable incomes and difficulty planning their daily lives.  

These new amendments require end hirers and agencies to provide reasonable notice of shifts, cancellations, and changes, which will significantly alleviate these pressures. 

By ensuring that workers receive adequate notice of their schedules, employees can better manage their time, maintain a healthier work-life balance, and avoid fatigue-related risks that arise from erratic working hours.  

Reduced stress and improved mental wellbeing contribute to a safer and more productive work environment. 

improved productivity and loyalty 

  • Improve workforce management and productivity 
  • Reduction in absenteeism and burnout 
  • Higher retention rates reducing costly staff turnovers 

For employers, predictable work patterns can significantly improve workforce management and productivity. Employees who experience stable working conditions are more engaged, focused, and motivated. With greater certainty in scheduling, employers can better manage staffing levels, ensuring optimal coverage while reducing absenteeism and burnout. 

53% of workers say they would stay longer in a company if they feel appreciated 

Glassdoor Survey

Improved employee wellbeing contributes to higher retention rates.

According to a Glassdoor survey, 53% of workers say they would stay longer in a company if they feel appreciated. Workers who feel valued and supported are more likely to remain committed to their roles, reducing costly staff turnover and enhancing overall team cohesion. 

Compensation for last-minute cancellations 

The new provisions stipulate that agencies must compensate workers for shifts that are cancelled on short notice. This discourages employers from dismissing workers without consequences, reducing financial instability. 

Financial stability is crucial for workers’ wellbeing  

From a safety perspective, financial stability is crucial for workers’ wellbeing. Employees who do not have to constantly worry about sudden loss of income can focus on their roles more effectively and better adhere to safety protocols. 

Better Sick Pay and Health Security 

Another important aspect of the Bill is the revision of statutory sick pay (SSP). The government has proposed that sick pay be available from the first day of illness, with a flat rate of 80% of normal earnings.  

The impact of better sick pay on agency workers 

Improved sick pay provisions mean that workers no longer have to choose between working while unwell and losing income. This is a vital step in promoting workplace safety, as it discourages employees from attending work while sick, thereby reducing the risk of illness spreading and maintaining a healthier workforce. 

Enhanced company culture and mental wellbeing 

By introducing greater security for zero-hour workers, businesses can create a more positive company culture. Employees who feel their wellbeing is prioritised are more likely to experience job satisfaction and engage positively with their colleagues, resulting in improved team dynamics, stronger morale, and a healthier workplace atmosphere.  

From a business success perspective, happier and healthier employees contribute to better customer service, innovation, and long-term business success. 

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