Families and estates of workers could receive compensation if employers violate a ban on zero hours contracts, according to a government amendment being considered by the House of Lords.
In some cases, employment tribunal claims may be filed after a worker or employer has passed away. This is usually the case if the claim involves unfair dismissal or redundancy, or if the employee or boss had other rights. The principle is now being expanded as part of the Make Work Pay agenda by ministers.
This amendment allows a representative to act in the place of the deceased worker. Compensation will be decided on financial loss as it is with all other claims.
Lord Leong, the Government whip, told the Lords the amendment “would ensure that in the event that a worker or employer died – or in the case agency workers, the death of another respondent – tribunal proceedings under zero-hours provision could still be instituted or continued by the personal representative of deceased.
According to a government spokesperson, “The Employment Rights Act already allows tribunal proceedings to continue in the name of a deceased employee or employer.” The minor changes we have made to our zero-hours policies ensure that they are in accordance with the existing employment rights.
“Wrecking Ball for the Part-Time Economy”
Some peers have criticised the government’s late amendments to the bill. Lord Wolfson, the head of clothing retailer Next said that the attempt to protect the rights of zero-hours workers would be “a wrecking ball for part-time economies”.
He said: “My worry is that the requirement to offer extra contract hours to those working extra hours will unintentionally prevent those additional hours from being offered.
“I’m not exaggerating if I say, if the threshold is too high for low-hours contract, it will be a wrecking-ball to the UK part-time economic. Millions of people will lose a flexible source of income, and many industries will be unable to provide excellent services when demand is volatile and variable.
The bill makes it difficult for employers to offer extra hours of voluntary work to employees who have contracts that are below the minimum-hour threshold.
Some peers, including Lord Fox, a Liberal Democrat, and Lord Hunt, a Conservative shadow minister for business, criticized the large number of amendments made to the Bill. They suggested that the legislation was not properly prepared.
“Time to support the Bill”
The proposed reforms were defended by Baroness O’Grady Upper Holloway. She was the former general secretariat of the Trades Union Congress. She said: “It’s time to move forward and support this bill, so that Britain can take the high road in improving business productivity through treating workers fairly and not as commodities.”
Liz Stevens is a professional support lawyer at Birketts. She told Personnel Today the amendment to the posthumous claims law was “only aligning the new provisions with the existing legislation”.
She continued: “In reality, it’s very rare for a worker to file a claim after their death.” In most cases, it’s not a priority because of the practicalities involved. In a few cases, an employee died in the middle of a case and the personal representative chose to carry on the proceedings for the estate. It is more likely to happen when the majority of preparation has been completed (including the disclosure of evidence).
The backlog in employment tribunals is increasing, and hearings can be scheduled years after the event. It is possible, with the ageing of our workforce, that personal representatives will be more active in the future. However, this is not likely to pose a major problem for employers.
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