Guaranteed Hours, Cancelled Shift Pay: What’s in the Employment Rights Bill—and What Recruiters Need to Do

2 Jun

The Employment Rights Bill is shaping up to be one of the most impactful pieces of legislation for the UK labour market in years. Among the headline changes for recruiters are:

A ban on exploitative zero-hours contracts
Guaranteed minimum hours for agency workers
Compensation for cancelled shifts
More direct worker rights and protections

This legislation may have started with good intentions—but for recruitment agencies, it adds layers of complexity to an already shifting compliance landscape.

“We’ve seen this before with Off-Payroll. Well-meaning rules get implemented, but without clear guidance—and agencies are left to pick up the pieces. That’s why preparation is key.”

— Chris Fahey, CEO, AGPayroll

What this means for you

If you operate in healthcare, education, hospitality or any sector reliant on flexible shift work, your ability to place temps quickly may be impacted.

You’ll need:

Clear contract structures for temporary workers
Systems in place to track hours, cancellations, and changes
Strong payroll partners who can handle complex calculations around shift guarantees and worker rights

At AGPayroll, we’re already working with agencies to build in this flexibility—without compromising compliance.

Your next steps

Review your candidate onboarding processes
Talk to your end clients about contract duration and shift reliability
Make sure your payroll partner can adapt to varying weekly hours, cancellations, and contract types

This isn’t just a compliance issue—it’s a candidate experience issue too. Getting it right will build trust and protect your reputation in a competitive market.