Young Women’s Trust responds to Department for Business and Trade Committee recommendations on the Employment Rights Bill March 2025
At Young Women’s Trust we know that young women are over-represented in low paid and insecure work. Job insecurity is an increasing concern for young women, and insecure work leaves them particularly exposed to discrimination and harassment. Therefore the Employment Rights Bill has the potential to transform the working lives of thousands of young women.
The Business and Trade Committee report on the Employment Rights Bill makes multiple recommendations that we are in support of. We hope the Government will consider amendments to the bill so that they are reflected in final legislation.
Right to guaranteed hours
The right to guaranteed hours will mean that anyone on a zero hours contract will have to be offered a contract guaranteeing a set number of hours, after an initial reference period. The number of hours will reflect the hours they have regularly worked during this reference period. It has been suggested, though it is not in the Bill currently, that this reference period could be 12 weeks.
The Committee recommendation:
Without a reference period defined in primary legislation, there is a lack of certainty among workers, trade unions and businesses as to how the right to guaranteed hours will work in practice. To ensure certainty, the Government should define as soon as possible through regulations how many weeks the initial and subsequent reference periods should be.
Young Women’s Trust response:
We agree with the committee that the Government needs to define the exact number of weeks that both initial and subsequent reference periods should be.
We support the 12 week reference period that is suggested in the Government’s Next Steps to Make Work Pay document. This would give young women and businesses a fair amount of time to calculate the hours worked and it is in line with other forms of employment law and rights.
We are aware that there are arguments to increase the reference period on the basis that it could fall during a seasonal period where more shifts are available and therefore the working pattern reflected could arguably be inaccurate. However, we believe that a 12-week period is fair and beneficial for businesses as it enables them to know they have contracted staff in advance of busy period. Additionally, it still offers the possibility of having zero hours seasonal workers for up to 12 weeks. Any extension of this 12 week period would jeopardise the Government’s aim to end one-sided flexibility.
Right to reasonable notice of shifts and compensation for shifts that are cancelled, moved, or curtailed at short notice
The Bill will give workers the right to reasonable notice of the shifts they are required to work, and payment if shifts are cancelled at the last minute. However, the Bill does not say what counts as ‘reasonable’ notice.
The Committee Recommendation:
While the Committee welcomes the added security for workers that the Bill brings with measures to provide reasonable notice of shifts and compensation for cancelled, moved or curtailed shifts. But the lack of key details on the face of the Bill means that Parliament is at risk of signing a regulatory blank cheque for the Secretary of State without knowing the full impact it will have on workers and businesses. The Government must put in primary legislation through the Employment Rights Bill a definition of:
- what is meant by ‘reasonable notice’ of shifts in clause two of the Bill; and
- definitions of what is meant by ‘moved,’ ‘short notice’ and what groups of workers would qualify in clause three of the Bill.
Young Women’s Trust Response:
‘Reasonable notice’ is a subjective phrase that needs to be clearly defined. We would define ‘reasonable notice’ as at least four weeks’ notice for all shifts. This will allow workers to budget monthly, and plan for the month ahead.
When young women have their shifts cancelled too late they are left unable to pay rent, bills and other expenses including putting food on the table. They are at risk of paying for non-refundable childcare to cover them whilst at work, which if a shift is cancelled too late will leave them in a financial deficit. This isn’t fair. Workers should receive compensation for shifts cancelled within the four-week notice period.
Harassment and abuse
The Employment Rights Bill will strengthen protections against harassment and abuse at work, including from colleagues and third-parties such as customers and clients. It will require employers to take ‘all reasonable steps’ to prevent harassment.
The committee recommendation:
To ensure long-term enforcement of the new duties on employers introduced in the Employment Rights Bill, the Government should revisit the regime for enforcing equality law and harm against individual protected characteristics, including setting out how the Fair Work Agency will work with the EHRC where their responsibilities overlap. As part of its implementation of employment rights reform, we recommend that Government review and consult on the future of equality law enforcement with a targeted focus on areas where enforcement may be improved to better protect workers from harassment and abuse on the basis of protected characteristics. This targeted review and consultation should consider areas including (a) resourcing, (b) the scope of statutory powers; and (c) the role of new enforcement bodies.
Young Women’s Trust response:
We have concerns about how complicated enforcement systems are for young women to navigate. It is not clear for them which bodies to turn to when experiencing discrimination, harassment or unfair treatment, nor how to access them. Discrimination is rife for young women at work, and according to our annual surveys it’s on the rise – with 53% of young women experiencing this, up from 42% in 2022. This is even higher for racially minoritised young women and those in insecure work.
The recommendation that there is a review of how the EHRC and Fair Work Agency work together is essential. Without this, the system could become even more confusing for young women and other workers to navigate.
Costs on businesses
The Committee recommendations:
We recognise that there are a significant number of new employment rights that employers will need to understand and implement. We therefore call on the Government to consider how they use networks of employment support, both statutory and voluntary, to support employers in the implementation. We recommend that the Government task Acas with leading an information campaign to raise awareness of and promote compliance with good employment practice.
Young Women’s Trust response:
Most employers want to abide by the law, and therefore it is essential the Government ensures that they are made aware of new employment rights so that they are able to implement them. The suggestion of an awareness campaign is something we welcome and could support with. However, it is equally important that employees know their new rights too. The Government also has a responsibility to ensure that all workers are informed of their new rights once the bill has been passed.
Our evidence consistently shows that young women don’t know their rights or where to look for information about them.
If young women don’t know their rights then they are instantly disempowered. As they are set to be one of the biggest beneficiaries of this bill, it is important that they receive targeted information to inform them of their rights. We would welcome the opportunity to discuss with the Government how we can work alongside them to ensure that all young women know their new rights and how to ensure that their employers are compliant.
Labour market enforcement
The Employment Rights Bill includes provisions for a single enforcement body, the Fair Work Agency, to enforce worker’s rights, replacing a number of different bodies which make up the current, fragmented enforcement system.
The Committee recommendations:
Laws are only as effective as those who enforce them. If the Government wishes to ensure workers are given strengthened employment rights, and that all firms benefit from a level playing field for labour standards, effective labour market enforcement must be prioritised.
The Committee welcomes the Government’s focus on labour market enforcement to tackle non-compliance. However, if the Fair Work Agency (FWA) is to be given new powers it will also need more resource. Efficiencies made from combining current budgets will not be enough. The Government must set out to the Committee its target for funding the FWA so that our country reaches, as a minimum, the ILO’s benchmark of one labour market inspector per 10,000 workers by the end of this Parliament. The Government should set out a strategy and a timeline for delivering this resource.
Young Women’s Trust response:
Enforcement agencies also need the resources and powers to properly enforce both new and existing rights. The current enforcement system is underfunded and overstretched. The EHRC, which currently ensures compliance with rights under the Equality Act, has seen a four-fifths budget cut in real terms since 2008-9, according to the Resolution Foundation, and cannot regularly proactively investigate employers suspected of non-compliance.
We are calling on the Chancellor to set out robust funding plans for the Fair Work Agency and the Equality and Human Rights Commission as part of the spending review on 11 June 2025.
Powers for the Fair Work Agency
The Government has said that the agency will have “strong powers to inspect workplaces and take action against exploitation,” as well as bring civil proceedings to uphold workers’ rights.
The Committee recommendations:
It is crucial that the creation of the Fair Work Agency does not result in a dilution of the powers currently held by the three existing enforcement bodies.
The Government must ensure that the Fair Work Agency has the necessary powers to deter non-compliance. It must have the authority to investigate all forms of labour exploitation, up to and including modern slavery, and be adequately resourced to fulfil this remit. The Agency must build effective partnerships with the Police and the Home Office to tackle the most severe offences of modern slavery. We encourage the Fair Work Agency to make stronger use of the penalties it has across its remit to ensure better compliance. The Committee will be monitoring the effectiveness of the Fair Work Agency over the course of this Parliament.
Young Women’s Trust Response:
Without a fully funded and effectively resourced Fair Work Agency (and Equality and Human Rights Commission), the Employment Rights Bill will fall flat. We know from our research that unfair and illegal practices in the workplace are rife.
Our 2024 annual survey has shown that:
- Almost a quarter of young women have been paid less than a man for the same work, despite this being illegal.
- More than a fifth (22%) of young women told us that they have been paid less than the minimum wage they were entitled to.
Employers are already escaping sanctions and accountability. This leaves young women less likely to report unfair and illegal treatment. This has to change. We echo the Committee’s recommendation that the Fair Work Agency has stronger powers, and we urge the Government to also review and strengthen the powers of the Equality and Human Rights Commission, as the body responsible for enforcing equalities laws. It is reassuring to know that the Committee will monitor the effectiveness of the Fair Work Agency. We also plan to monitor how young women’s experiences in the workplace change as the measures in the Bill are implemented and are keen to share this evidence with the Committee and the Government.
