Application of Part 3 of Schedule A1

20 (1) This Part of this Schedule applies in relation to a shift that would be (or would have been) worked, or is being worked, by an individual as an agency worker.

(2) In the application of this Part of this Schedule in relation to an agency worker and a shift, references to—

(a) “the work-finding agency” are to the work-finding agency with which the agency worker has a worker’s contract or an arrangement and by virtue of which the agency worker would work (or would have worked) or is working the shift;

(b) “the hirer” are to the person for and under the supervision and direction of whom the agency worker would work (or would have worked) or is working the shift.

Right to payment for a cancelled, moved or curtailed shift

21 (1) A work-finding agency must make a payment of a specified amount to an agency worker each time that, by virtue of the worker’s contract or arrangement that the agency worker has with the work-finding agency, there is a cancellation, movement or curtailment at short notice of a shift—

(a) that the agency worker has been informed they are required to work for the hirer (by virtue of that worker’s contract or arrangement),

(b) that the agency worker has been requested to work for the hirer (by virtue of that worker’s contract or arrangement) and the agency worker has agreed to work, or

(c) that the agency worker has suggested working for the hirer and it has been agreed (by virtue of that worker’s contract or arrangement) that the agency worker is to work,

(but see paragraph 23 for exceptions to this duty).

(2) A payment that a work-finding agency is required to make under sub-paragraph (1) must be made by no later than the specified day.

(3) For the purposes of this Part of this Schedule, “short notice” means—

(a) in relation to the cancellation of a shift, notice given less than a specified amount of time before the shift would have started (if the shift had not been cancelled);

(b) in relation to the movement of a shift, or the movement and curtailment (at the same time) of a shift, notice given less than a specified amount of time before the earlier of—

(i) when the shift would have started (if the shift had not been moved, or moved and curtailed), and

(ii) when the shift is due to start (having been moved, or moved and curtailed);

(c) in relation to the curtailment of a shift where there is a change to when the shift is to start (but there is no movement of the shift), notice given less than a specified amount of time before the earlier of—

(i) when the shift would have started (if there had not been the change), and

(ii) when the shift is due to start (the change having been made);

(d) in relation to the curtailment of a shift where there is no change to when the shift is to start, notice given—

(i) less than a specified amount of time before the shift is due to start;

(ii) on or after the start of the shift.

(4) The Secretary of State may by regulations make provision about when notice of the cancellation, movement or curtailment of a shift is to be treated as having been given to an agency worker for the purposes of this Part of this Schedule.

(5) In this Part of this Schedule, references to the “movement” of a shift (however expressed) are to any change to the day on which or the time at which the shift is to start that is a change of more than a specified amount of time.

(6) In this Part of this Schedule, references to a request made to an agency worker to work a shift include a request (a “multi-worker request”) made to the agency worker and one or more others in circumstances where not all of those to whom the request is made are needed to work the shift.

(7) For the purposes of this Part of this Schedule, where a multi-worker request has been made to an agency worker in relation to a shift, references to the cancellation of the shift include the agency worker not being needed to work the shift because one or more others have agreed to work it.

Regulations under paragraph 21: supplementary

22 (1) Regulations under paragraph 21(1) may not specify an amount to be paid to an agency worker in relation to the cancellation, movement or curtailment of a shift that exceeds—

(a) where the shift is cancelled, the amount of remuneration to which the agency worker would have been entitled had they worked the hours that will not be worked because of the cancellation;

(b) where the shift is moved, or moved and curtailed (at the same time), and no part of the shift as moved, or as moved and curtailed, corresponds to the time of the shift (“the original shift”) before it was moved, or moved and curtailed, the amount of remuneration to which the agency worker would have been entitled had they worked the original shift;

(c) where the shift is moved, or moved and curtailed (at the same time), and part of the shift as moved, or as moved and curtailed, corresponds to the time of the original shift (but part does not), the amount of remuneration to which the agency worker would have been entitled had they worked the part of the original shift that does not correspond to the shift as moved, or as moved and curtailed;

(d) where the shift is—

(i) curtailed but not moved, or

(ii) moved and curtailed (at the same time) and the shift as moved and curtailed is to start and end within the time of the original shift,

the amount of remuneration to which the agency worker would have been entitled had they worked the hours that will not be worked because of the curtailment, or the movement and curtailment.

(2) Regulations under paragraph 21(1) may, in particular, include provision specifying different amounts depending on the amount of notice that was given of the cancellation, movement or curtailment.

(3) Regulations under paragraph 21(3) may not specify an amount of time that exceeds 7 days.

Exceptions to duty to make payment for a cancelled, moved or curtailed shift

23 (1) The requirement to make a payment under paragraph 21(1) does not apply—

(a) in relation to the cancellation, movement or curtailment of a shift if, in relation to the agency worker, the shift is an excluded shift;

(b) in relation to the cancellation, movement or curtailment of a shift that an agency worker has been requested to work, unless the agency worker reasonably believed, whether on agreeing to work the shift or at some later time before the cancellation, movement or curtailment, that they would be needed to work the shift;

(c) in other specified circumstances (whether circumstances relating to the work-finding agency, the hirer or otherwise).

(2) In sub-paragraph (1)(a), “excluded shift”, in relation to an agency worker, means a shift of a specified description.

(3) Regulations under sub-paragraph (2) may, in particular, specify a description of shift by reference to—

(a) the amount payable for working the shift being more than a specified amount;

(b) the number of hours to be worked during the shift, whether alone or taken together with other shifts of a specified description, being more than a specified number;

(c) the shift corresponding to the time of a shift provided for by a worker’s contract between the agency worker and a work-finding agency or another person involved in the supply or payment of the agency worker (and where the regulations so specify a description of shift, the regulations may include provision similar or corresponding to section 27BP(4)).

(4) Where, by virtue of regulations made under sub-paragraph (1)(c), a work-finding agency is not required to make a payment to an agency worker in relation to a shift under paragraph 21(1), the work-finding agency must give a notice to the agency worker that—

(a) states which provision of the regulations has produced the effect that the work-finding agency is not required to make the payment, and

(b) explains why the work-finding agency was entitled to rely on that provision so as not to make the payment to the agency worker under paragraph 21(1).

(5) But sub-paragraph (4) does not require a work-finding agency to disclose—

(a) any information the disclosure of which by the work-finding agency would contravene the data protection legislation (but in determining whether a disclosure would do so, the duty imposed by that sub-paragraph is to be taken into account);

(b) any information that is commercially sensitive;

(c) any information the disclosure of which by the work-finding agency would constitute a breach of a duty of confidentiality owed by the work-finding agency to any other person.

(6) In sub-paragraph (5)(a) “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3(9) of that Act).

(7) The Secretary of State may by regulations make provision about—

(a) the form and manner in which a notice under this paragraph must be given;

(b) the day on or before which it must be given;

(c) when a notice under this paragraph is to be treated as having been given.

(8) The duty in sub-paragraph (4) does not apply if, before the day on or before which the notice must be given, the work-finding agency or another person has paid to the agency worker an amount in relation to a number of hours that is at least equal to the amount of the payment that the work-finding agency would have been required to make to the agency worker under paragraph 21(1) in relation to the same number of hours but for regulations made under sub-paragraph (1)(c).

(9) Sub-paragraph (4) of paragraph 24 applies for the purposes of sub-paragraph (8) of this paragraph as it applies for the purposes of sub-paragraphs (2) and (3) of that paragraph.

Contractual remuneration

24 (1) The right of an agency worker to receive a payment from a work-finding agency under paragraph 21(1) does not affect any right of the agency worker in relation to remuneration under a worker’s contract (whether with the work-finding agency or another person) (“contractual remuneration”).

(2) Any contractual remuneration paid to an agency worker in relation to a number of hours goes towards discharging any liability of the work-finding agency to make a payment to the agency worker under paragraph 21(1) in relation to the same hours.

(3) Any payment made by a work-finding agency to an agency worker under paragraph 21(1) in relation to a number of hours goes towards discharging any liability to pay contractual remuneration to the agency worker in relation to the same hours.

(4) For the purposes of sub-paragraphs (2) and (3), the hours to which a payment under paragraph 21(1) relates are—

(a) where a shift has been cancelled, the hours that would have been worked (by virtue of the worker’s contract or arrangement between the work-finding agency and the agency worker) if the shift had not been cancelled;

(b) where a shift has been moved, or moved and curtailed (at the same time), and no part of the shift as moved, or as moved and curtailed, corresponds to the time of the shift (“the original shift”) before it was moved, or moved and curtailed, the hours that would have been worked (by virtue of the worker’s contract or arrangement between the work-finding agency and the agency worker) during the original shift;

(c) where a shift has been moved, or moved and curtailed (at the same time), and part of the shift as moved, or as moved and curtailed, corresponds to the time of the original shift (but part does not), the hours that would have been worked (by virtue of the worker’s contract or arrangement between the work-finding agency and the agency worker) during the part of the original shift that does not correspond to the shift as moved, or as moved and curtailed;

(d) where a shift has been—

(i) curtailed but not moved, or

(ii) moved and curtailed (at the same time) and the shift as moved and curtailed is to start and end within the time of the original shift,

the hours that would have been worked (by virtue of the worker’s contract or arrangement between the work-finding agency and the agency worker) if the shift had not been curtailed, or moved and curtailed.

Complaints to employment tribunal

25 (1) An agency worker may present a complaint to an employment tribunal that, in relation to a shift, the work-finding agency—

(a) has failed to make the whole or any part of a payment that the work-finding agency is liable to make to the agency worker under paragraph 21(1);

(b) has unreasonably failed to give to the agency worker a notice under paragraph 23(4);

(c) has given to the agency worker a notice in purported compliance with paragraph 23(4) that—

(i) does not refer to any provision of the regulations or refers to the wrong provision;

(ii) does not contain an explanation or contains an explanation that is inadequate or untrue.

(2) An employment tribunal must not consider a complaint under sub-paragraph (1)(a) relating to a payment unless it is presented before the end of the period of six months beginning with the day after the day on or before which the payment should have been made (see paragraph 21(2)).

(3) An employment tribunal must not consider a complaint under sub-paragraph (1)(b) relating to a notice unless it is presented before the end of the period of six months beginning with the day after the day on or before which the notice should have been given (see paragraph 23(7)(b)).

(4) An employment tribunal must not consider a complaint under sub-paragraph (1)(c) relating to a notice unless it is presented before the end of the period of six months beginning with the day after the day on which the notice is given.

(5) But, if the employment tribunal is satisfied that it was not reasonably practicable for a complaint under this paragraph to be presented before the end of the relevant period of six months, the tribunal may consider the complaint if it is presented within such further period as the tribunal considers reasonable.

(6) Section 207B (extension of time limits to facilitate conciliation before institution of proceedings) applies for the purposes of sub-paragraphs (2) to (4).

(7) Where—

(a) an agency worker presents a complaint to an employment tribunal under sub-paragraph (1)(c) that, in relation to a shift, the work-finding agency has given to the agency worker a notice in purported compliance with paragraph 23(4) that refers to the wrong provision of the regulations or contains an explanation that is inadequate or untrue, and

(b) the work-finding agency claims that it was provided by the hirer with information for the purposes of the notice that was wrong, inadequate or untrue,

the work-finding agency may request the employment tribunal to direct that the hirer be added as a party to the proceedings.

(8) A request under sub-paragraph (7) must be granted if it is made before the hearing of the complaint begins, but may be refused if it is made after that time; and no such request may be made after the tribunal has made its decision as to whether the complaint is well-founded.

(9) The Secretary of State may by regulations provide that sub-paragraph (7) does not apply in relation to a hirer of a specified description.

Remedies

26 (1) Where an employment tribunal finds a complaint under paragraph 25(1)(a) well-founded, the tribunal must—

(a) make a declaration to that effect, and

(b) order the work-finding agency to pay to the agency worker the amount of the payment under paragraph 21(1) which it finds is due to the agency worker.

(2) Where an employment tribunal finds a complaint under paragraph 25(1)(b) or (c) well-founded, the tribunal—

(a) must make a declaration to that effect, and

(b) may order the work-finding agency to make a payment to the agency worker of such amount, not exceeding the specified amount, as the tribunal considers just and equitable in all the circumstances.

(3) But an employment tribunal may not make an order under sub-paragraph (2)(b) relating to a notice given in purported compliance with paragraph 23(4) if the tribunal makes an order under sub-paragraph (1)(b) relating to the same payment to which the notice related.

(4) In determining—

(a) whether to make an order under sub-paragraph (2)(b), and

(b) if so, how much to order the work-finding agency to pay, an employment tribunal must have regard, in particular, to the seriousness of the matter complained of.

(5) If, following the making of a request under paragraph 25(7), an employment tribunal has added the hirer as a party to the proceedings and the tribunal—

(a) finds the complaint under paragraph 25(1)(c) well-founded (so far as relating to the notice referring to the wrong provision of the regulations or containing an explanation that is inadequate or untrue),

(b) makes an award of compensation under sub-paragraph (2)(b), and

(c) also finds that the hirer did provide the work-finding agency with information for the purposes of the notice that was wrong, inadequate or untrue,

it may order that the compensation is to be paid by the hirer instead of by the work-finding agency, or partly by the hirer and partly by the work-finding agency (with the amount of the compensation payable by each being such amount as the tribunal considers just and equitable in the circumstances).

Recovery of payment by work-finding agency from hirer: pre-existing arrangements

27 (1) Where, in compliance with paragraph 21(1), a work-finding agency makes a payment to an agency worker in relation to a shift that the agency worker was to be, or was, supplied to work by virtue of a pre-existing arrangement involving the work-finding agency and the hirer, the work-finding agency is entitled to recover from the hirer the proportion of the payment (up to the full amount of it) that reflects the hirer's responsibility for the shift having been cancelled, moved or curtailed at short notice.

(2) The Secretary of State may by regulations provide that sub-paragraph (1) does not apply in relation to a hirer of a specified description.

(3) A "pre-existing arrangement" means an arrangement—

(a) that was entered into on or before the last day of the period of two months beginning with the day on which the Employment Rights Act 2025 was passed, and

(b) that has not been modified by the work-finding agency and the hirer after the last day of that period.

(4) The reference in sub-paragraph (1) to a payment made in compliance with paragraph 21(1) includes a payment made by virtue of an order under paragraph 26(1)(b).

(5) Sub-paragraph (1) applies whether the agency worker was to be, or was, supplied to work for and under the supervision and direction of the hirer by the work-finding agency or by another person.””—(Justin Madders.)

This new schedule inserts new Schedule A1 into the Employment Rights Act 1996 which makes provision for agency workers which is similar to the provision made in relation to certain non-agency workers by clauses 1 to 3.

Brought up, and added to the Bill.