NHS organisations across England could face almost 1 billion in additional annual costs under proposed changes to employment law aimed at reforming zero-hours contracts, according to new analysis from NHS Employers.
The warning comes as the government consults on regulations linked to the Employment Rights Act following Labour's 2024 manifesto commitment to tackle what it described as "exploitative" zero-hours working arrangements.
The proposed reforms would give workers on zero-hours and low-hours contracts new rights, including guaranteed-hours contracts based on their regular working patterns, greater notice of shifts and compensation for shifts cancelled or changed at short notice.
While most NHS staff are employed on permanent contracts, trusts rely heavily on internal staff banks to fill temporary shifts, often at very short notice, to maintain safe staffing levels during periods of sickness absence, seasonal demand and emergency incidents.
NHS Employers argues that NHS staff bank arrangements differ significantly from the employment practices the government is seeking to address. The organisation says NHS banks offer flexibility for both employers and workers, enabling healthcare professionals to decide when and where they work while helping services maintain 24-hour patient care.
According to NHS Employers, around 85 per cent of NHS bank workers already hold a substantive NHS contract and choose to take on additional work through trust staff banks. Survey data...
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