POWER TO THE PEOPLE?
In March of this year, we reported on a Bill, the Workers (Predictable Terms and Conditions) Bill 2022-23, which has now received Royal Assent. It will become law, probably in September 2024 and will be referred to as the Workers (Predictable Terms and Conditions) Act 2023.
There is a 12 month period between the Act receiving Royal Assent and it becoming law in order to allow businesses to prepare. Acas will also produce a new Code of Practice that will provide guidance on making and handling requests for a more predictable working pattern. Draft terms of a Code of Practice are expected to be available for public consultation shortly.
The Act amends Part 8A of the Employment Rights Act 1996 to insert:
Chapter 2 - Predictable Work Pattern - Workers
Chapter 3 - Predictable Work Pattern – Agency Workers
Chapter 4 - Restrictions On Multiple Applications.
It sets out a new statutory right for workers and agency workers to request a change in terms and conditions if there is a lack of predictability in their work, whether that is in relation to their hours, days, times or patterns that they work. The statutory right to request a predictable working pattern also applies to those workers on a fixed-term contract of 12 months or less. The qualifying period of service for making an application is expected to be 26 weeks; it will be specified in subsequent Regulations.
"Now is the time for businesses who use workers and agency workers to get ahead and ensure that they have clearly defined processes and procedures for dealing effectively with flexible working applications..."
The application procedure follows a similar procedure to that currently used for a flexible working request. The application needs to specify that it is an application for a predictable work pattern, the actual change applied for and the date it is proposed that the change would come into effect.
When dealing with an application for a predictable work pattern, a business:
Must deal with the application in a reasonable manner.
Must notify the worker of its decision within the "decision period" (one month beginning with the date on which the application is made (section 80IC(7), ERA 1996)).
Can reject the application, but only if one or more of grounds below apply:
burden of additional costs;
detrimental effect on ability to meet customer demand;
detrimental impact on the recruitment of staff;
detrimental impact on other aspects of the employer's business;
insufficiency of work during the periods the worker proposes to work;
planned structural changes; and
such other grounds as may be specified in regulations.
A worker or agency worker can make up to two statutory applications during any 12-month period for either the ‘purpose of improving predictability’ (which includes a flexible working request and a request for a predictable work pattern) and ‘otherwise than for the purpose of improving predictability’ which covers a flexible working request.
Workers and agency workers can bring claims for procedural failings such as the failure to deal with an application in a reasonable manner and possible remedies open to the tribunal for orders for reconsideration and compensation calculated on a just and equitable basis up to a permitted maximum. The Regulations will set out the permitted maximum in due course, however it is expected to be eight weeks’ pay in line with the current flexible working regime. Workers and agency workers can also bring claims for a detriment and for automatic unfair dismissal which requires no qualifying period.
Now is the time for businesses who use workers and agency workers to get ahead and ensure that they have clearly defined processes and procedures for dealing effectively with flexible working applications which can then be developed and applied to applications for predictable working patterns. Managed effectively, this new law can boost business and lead to better staff retention and productivity.
Why not get ahead of the game by arranging a confidential discussion with one of our team to discuss how best to implement these forthcoming changes in your business?
SOURCES:
https://www.legislation.gov.uk/ukpga/2023/46/pdfs/ukpga_20230046_en.pdf
https://www.gov.uk/government/news/millions-get-more-power-over-working-hours-thanks-to-new-law