Flexible Working Contracts 2015 A bill to replace Zero Hour Contracts with Flexible Working Contracts, designed to be an alternative to regular working contracts. BE IT ENACTED by The Queen’s most Excellent Majesty, by and with the advice and consent of the Commons in this present Parliament assembled, in accordance with the provisions of the Parliament Acts 1911 and 1949, and by the authority of the same, as follows:— Part I - Definitions Zero Hours Contracts A Zero Hours Contract is name of a form of contract that is replaced by Flexible Working Contracts. The contract is a contract or agreement for the supply of labour which has no specified working hours and satisfies the following feature: The contract would require the worker to be available for work as such times when there is not a guarantee that the worker is required for work. Regular Working Contracts A Regular Working Contract is any form of contract of employment that specifies working hours. Flexible Working Contracts A Flexible Working Contract is a contract or agreement for the supply of labour which does not specify working hours. In order to enter a Flexible Working Contract, one of the following clauses must be satisfied: The contract requires the worker to be unable to commit to a Regular Working Contract. The contract was specifically requested by the employee due to commitments making regular work impractical.

Part II - Amendments and Repeals Zero Hours Contract Bill 2015 The Zero Hours Contract Bill 2015 is repealed in its entirety. The appropriate sections have been recreated here in order to maintain clarity. Working Regulations Bill 2014 The Working Regulations Bill 2014 is repealed in its entirety, with relevant and unaffected sections being recreated here for clarity and continuation. Part 1, Section 1, Definition of Normal Working Hours, has been recreated in Part 1, Section 2 of this bill, Definition of Regular Working Contracts. Part 2, Enhanced Pay Rates, has been recreated in Part 8 of this bill. Part 3, Effects on Benefits, has been amended and recreated in Part 7 of this bill. Part 5, Fining of Employers, has been amended and recreated in Part 6 of this bill.

Part III - Prohibition of Zero Hours Contracts. Zero Hours Contracts, from the commencement of this bill are prohibited. All Zero Hours Contracts must be replaced by Regular Working Contracts or Flexible Working Contracts. This is in accordance to the regulations set out in Parts I and IV of this bill.

Part IV - Use of Flexible Working Contracts The use of Flexible Working Contracts as a form of mainstream employment, as under Zero Hours Contracts is prohibited. As such: All employees have the right to a Regular Working Contract. Under no circumstances may the employer offer a Flexible Working Contract as its primary contract of employment. From the commencement of this bill, all employers are legally bound to offer employees working on Zero Hours Contracts a Regular Working Contract. This contract may be full or part time, however it must comply to the terms of a Regular Working Contract as stated in Part 1 Section 2 of this bill. Any employee wishing to work under a Flexible Working Contract has the right to request this from the employer. However, the employer may not request a Flexible Working Contract from the employee. Any employee wishing to continue with their current employment contract agreement may request for their Zero Hours Contract to be terminated and a Flexible Working Contract to be established. Under no circumstances may the employer request that any employee currently working on a Zero Hours Contract moves to a Flexible Working Contract. The insertion of exclusivity clauses within Flexible Working Contracts is prohibited. Under no circumstances will an exclusivity clause be legally binding. Employees working on a Flexible Working Contract are legally entitled to be paid for all hours: Spent providing labour as agreed in the Contract of Employment. Spent available at or near a place of work for the purpose of doing time work and being required to be available for work. For the purpose of this bill, this clause is to be referred to as the employee being ‘on call’. This is in accordance with the National Minimum Wage Act of 1998. Employees may wish to create a mixed Working Contract, with a set amount of guaranteed hours set into a Flexible Working Contract. This is entirely at the discretion of the employee and employer, and may be negotiated in order to reach a fair conclusion for both parties. Where the contract of employment does not exceed 10 hours of guaranteed work per week: The rate of pay shall be at least ten percent higher than the minimum wage, or the rate paid to other workers doing the same job, whichever is the higher, for the first 10 hours of work provided by the employee.

Part V - Accountability of Flexible Working Contracts Flexible Working Contracts are to be considered a contract of employment, as stated in the Employment Rights Act 1996. As such: Flexible Working Contracts are subject to the Employment Rights Act 1996, Part XIV, Chapter III Section 230. They will be accountable as a ‘contract of employment’. (Employment Rights Act 1996, Part XIV, Chapter III Section 230-2. This holds them accountable to the same employment laws as Regular Working Contracts, unless stated otherwise in this bill. This also holds them accountable to any further employment laws or otherwise stated in this bill. The Employer of a Flexible Working Contract agreement is responsible for: Tax and National Insurance Ensuring that the worker has the right to work in the United Kingdom. Ensuring that the worker is familiar with all relevant Health and Safety procedure including, but not limited to, evacuation of the building, reporting of health and safety issues, the procedure in case of any spills of chemicals, and first aid arrangements. Providing all personal protective equipment. Part VI - Breach of Regulations. In the event of any employer breaking any of the relevant regulations set out in Parts III, IV, V and VIII of this bill, a fine of £5,000 per employee up to no limit may be enforced.

Part VII - Effects on Benefits No person shall have their benefits reduced for refusing an offer of work: Where the offer was a Flexible Working Contract. Where the offer was a Regular Working Contract and the guaranteed hours on offer were less than 20 hours.

Part VIII - Enhanced Pay Rates The employer is obligated to pay an enhanced rate for time worked above: One and a half times the contracted rate of hours. Forty Hours. The employer is to pay this rate for whichever of the above clauses comes first. This rate is to stand at: One and a half times the contracted pay for eight hours. Double the contracted pay for any subsequent hours.

Part IX - Interpretation For the purposes of this bill: Employees are anybody supplying labour under an contract of employment. An employer is anybody supplying a contract of employment in return for the supply of labour. An exclusivity clause is a clause within a contract that would require an employee to work for one employee only. Part X - Final Provisions Commencement This act will come into commencement on the 1st September, 2015. Extent This act extends to the entire United Kingdom, consisting of England, Wales, Scotland and Northern Island. Short Title This bill may be cited as the Flexible Working Contracts Bill 2015.

Opening Speech:

Mr Speaker, I am happy to present to the house the Second Reading of the Flexible Working Contracts Bill. I am also happy to be able to provide an opening speech with this reading, a poor use of timing by myself on the first reading. This bill has two very clear purposes. Firstly, this bill seeks to outlaw Zero Hours Contracts, an employment practice that has plagued this country for far too long. This practice has taken away security and consistency from hundreds of thousands of workers in the United Kingdom who wish for it. Secondly, this bill seeks to recognise how Zero Hours Contracts did bring some clear advantages to many workers throughout the United Kingdom, and creates a new contract of employment in order to encompass these advantages. Flexible Working Contracts, a term ironically first used by a Conservative MP, seek to create a heavily regulated and secure form of flexible employment for workers who desire it. No longer will employees have to worry about exclusivity clauses or inconsistent hours from employers unless they wish to work under these conditions. Flexible Working Contracts, most importantly, aim to create a fair deal between employer and employee, allowing for more negotiation and space for movement on both the side of the employer and the employee.

Since the first reading of this bill, I have taken into account the advice of the house. One significant point mentioned was the reduction in workers rights which this bill would have inadvertently caused. I have included the rights which the previous bill neglected in this bill, ensuring that workers get a fair deal whatever contract they choose to work under. I have also added the ability to “mix and match” set hours with flexible hours, giving more negotiation room to both the employer and employee when working to create a fair solution for all parties. I would implore all members of the house to vote aye on this bill in order to give more security to this great nation's workforce and provide a better deal for those working on exploitative and unfair contracts.

/u/MorganC1, Secretary of State for Business, Industry and Skills.