The Workers (Predictable Terms and Conditions) Act 2023, which received Royal Assent on 8 September 2023, aims to enhance the stability and predictability of working conditions for a substantial segment of the UK workforce by striking a balance between the flexibility that certain employers require and the need for greater job security among workers.
Set to come into force around September 2024, this legislation grants workers, especially those in atypical employment like temporary or zero-hour contracts, the right to request more predictable working patterns.
The Act is designed to address the challenges faced by individuals in precarious work arrangements, where the unpredictability of hours and income can create significant personal and financial insecurity.
Key elements of the Act include:
- Eligibility: Workers need to have at least 26 weeks of service to be eligible to make a request for a predictable work pattern.
- Request Limitations: Workers are permitted to make up to two requests within a 12-month period, covering aspects such as work hours, days, and contract lengths.
- Employer Response: Employers must address these requests within a month and can decline them based on specific grounds such as additional costs, impact on customer demand, insufficient work during the requested times, and planned structural changes.
Implications for Employers
For employers, the Act represents a significant shift in the management of workforce flexibility. It underscores the importance of careful workforce planning and the need to establish clear, transparent procedures for handling requests under the new law.
Employers will need to prepare for an increase in formal requests for more predictable working arrangements. This preparation may involve reviewing and, where necessary, revising current employment contracts, policies, and procedures to ensure compliance with the new legal framework. Additionally, employers should consider the potential impact on business operations, particularly in sectors that traditionally rely on flexible or irregular working patterns, such as hospitality, retail, and logistics.
The Act also introduces potential liabilities for employers who fail to comply with the new requirements. As with other employment rights, failure to handle requests appropriately or to provide sufficient reasons for a refusal could result in tribunal claims, with associated reputational and financial risks.
Next Steps and Recommendations
With the secondary regulations expected to come into force next month, employers should take proactive steps to ensure they are fully prepared for the changes. Key actions include:
- Reviewing Employment Contracts: Ensure that current contracts reflect the new rights and obligations under the Act, and consider how predictable working terms could be accommodated.
- Updating Policies and Procedures: Establish clear, consistent procedures for handling requests, including training managers and HR personnel on how to assess and respond to requests fairly and lawfully.
- Assessing Workforce Planning Needs: Evaluate how increased predictability might affect business operations and consider adjustments to workforce planning strategies to maintain flexibility while complying with the new requirements.
- Communication with Employees: Clearly communicate the new rights and processes to employees, ensuring they understand their rights under the Act and how to make a request.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
