What does it mean for small businesses?
Current Framework and Changes:
- Zero hours contracts are prevalent, impacting over 1 million workers. While they offer flexibility, they can lead to financial instability for workers due to unpredictable hours and earnings.
- The government aims to end one-sided flexibility, ensuring jobs provide greater security and predictability.
Key Measures:
- Guaranteed Hours: Employers must offer qualifying workers guaranteed hours based on their work history over a specified reference period (likely 12 weeks).
- Notice of Shifts: Employers must provide reasonable notice for shift changes. If not, workers can bring claims to a tribunal.
- Payment for Cancellations: Workers will be entitled to compensation if shifts are cancelled or altered on short notice.
Next Steps for Small Businesses
- Review Contracts: Assess current zero hours contracts to understand how they align with upcoming regulations.
- Prepare for Changes: Stay informed about government consultations and upcoming regulations on guaranteed hours and notice periods.
- Evaluate Workforce Planning: Consider strategies to better predict staffing needs to comply with new requirements and minimise disruption.
- Educate Staff: Ensure that management understands the new rights of workers and the implications for scheduling and financial planning.
- Budget for Compliance: Anticipate potential costs associated with guaranteed payments and other compliance-related expenses.
By proactively adjusting policies and practices, small businesses can adapt to these changes while maintaining workforce morale and operational efficiency. We can support you with this!
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