Understanding the UK's Workers (Predictable Terms and Conditions) Act 2023
The UK's employment landscape has been going through a significant period of change. There seems to be new legislation for businesses to contend with on a monthly basis. Last month we saw the Workers (Predictable Terms and Conditions) Act 2023 achieve Royal Assent and become law.
But what is the Workers (Predictable Terms and Conditions) Act 2023? And what do business leaders need to know?
What is the Workers (Predictable Terms and Conditions) Act 2023?
The Act is groundbreaking legislation that allows workers, including those on zero-hours and temporary contracts, to request more predictable working terms.
In the context of this Act, 'predictability' refers to the stability and reliability of work schedules and conditions. It's about knowing when you'll work, how long you'll work, and under what conditions, allowing for better life planning and less stress. For example:
Fixed Hours vs. Zero-Hours: A worker on a zero-hours contract may not know from one week to the next how many hours they'll be working. Under the Act, they could request a contract with guaranteed minimum hours, making their income and work-life balance more predictable.
Shift Patterns: If an employee works irregular shifts, they could request a more regular pattern, allowing them to better align their work commitments with personal responsibilities like childcare.
Advance Notice: Predictability could also mean receiving work schedules well in advance, allowing workers to plan other aspects of their lives more effectively.
Of course, employers have the right to refuse these requests, but only on specific grounds such as additional costs or detrimental effects on customer demand.
The Impact on Businesses
While the Act is primarily designed to empower workers, it also has a silver lining for employers.
Offering more predictable working conditions can lead to higher job satisfaction, increased productivity, and better staff retention. In the long run, these factors can contribute to a more robust and resilient business model.
If you find yourself in receipt of a predictability request from one of your employees, here are some suggested steps to follow:
Acknowledge the Request: Once a request is received, acknowledge it promptly. This will reassure the individual making the request that it will be handled appropriately.
Assess the Impact: Evaluate how granting the request would affect your business operations. Will it cause more work for other team members, cost too much to facilitate, or anything else that could negatively impact the business?
Consult and Decide: Discuss the request with relevant team members and make a decision within one month, as stipulated by the Act.
Communicate: Whether you approve or deny the request, communicate the decision clearly and respectfully to the employee.
Preparation is key. HR leaders and business owners should start by familiarizing themselves with the Act's details and consulting legal advisors to ensure compliance. Staff training sessions can also be beneficial to ensure everyone is on the same page.
Critics argue that while the Act grants workers the right to request predictable hours, it might inadvertently stifle the flexibility that many modern workers seek. It's a complex issue that employers will need to navigate carefully.
The UK government, particularly the Department for Business and Trade, backs the Act. It's part of a broader package aimed at enhancing workers' rights, with more legislation to come over the next few years. Employers should keep an eye on additional legislation that may follow, as the employment landscape is continually evolving.