Schedule 2 makes amendments to the Insolvency Act 1986, the Employment Tribunals Act 1996, the Employment Rights Act 1996 and the Bankruptcy (Scotland) Act 2016 in consequence of sections 1 to 5, including Schedule 1.
	Paragraph 1 amends the Insolvency Act 1986 to make payments under section 27BP(1) of, and paragraph 22(1) of Schedule A1 to, the ERA 1996 (payments for cancelled, moved or curtailed shifts) preferential debts when an employer becomes insolvent.
	Paragraphs 2 to 5 amend the Employment Tribunals Act 1996.
	Paragraph 3 amends terms used in section 12A of the Employment Tribunals Act 1996 relating to financial penalties where there are aggravating features in a case so that the section, and Part 2A of that Act regarding civil penalties for non-payment of tribunal awards, applies to the wider range of potential claimants and respondents in scope of the provisions inserted into the ERA 1996 by sections 2 to 6, including Schedule 1, and this Schedule. For example, the definitions of "worker" and "employer" in section 230 of the ERA 1996 are expanded by new section 27BJ(7) of the ERA 1996 (inserted by section 2) to include individuals who would be a worker if they worked the shift and those they would be employed by respectively. Paragraph 3 ensures that, if such an individual successfully brings a claim that their employer (i.e., the person they would be employed by) has breached their right to reasonable notice of a shift, that ‘employer’ could be subject to a financial penalty under section 12A of the Employment Tribunals Act 1996 (as well as under Part 2A of that Act, which, by virtue of section 37Q, uses the same terms), if appropriate.
	Paragraph 4 amends section 16 of the Employment Tribunals Act 1996 to expand the Secretary of State’s power to make regulations to recoup universal credit, jobseeker’s allowance, income support or income-related employment and support allowance that a worker has received, from their employment tribunal award. This amendment allows the Secretary of State to make regulations to recoup such benefits from the wider range of potential claimants and respondents in scope of, and awards that can be received under the provisions inserted into ERA 1996 by sections 1 to 5, including Schedule 1, and this Schedule.
	Paragraph 5 amends section 18 of the Employment Tribunals Act 1996 so that the new types of claims created by sections 1 to 5, including Schedule 1, are "relevant proceedings" for the purpose of conciliation. This means that, before a person presents an application to institute such proceedings, the prospective claimant must contact ACAS (the Advisory, Conciliation and Arbitration Service) to enable a conciliation officer to promote a settlement.
	Paragraphs 2 to 30 amend the Employment Rights Act 1996.
	Paragraph 7 amends section 27 of the ERA 1996 to provide for payments under section 27BP(1) of, and paragraph 22(1) of Schedule A1 to, the ERA 1996 (payments for cancelled, moved or curtailed shifts) to be treated as "wages" for the purposes of the provisions on unlawful deductions of wages in Part 2 of the ERA 1996. Where a worker has not received a payment under section 27BP(1) or paragraph 22(1) of Schedule A1 for the short notice cancellation, movement or curtailment of their shift, they therefore have the option to bring an unlawful deduction of wages claim.
	Paragraphs 8 and 9 make amendments to Section 27A (exclusivity terms unenforceable in zero hours contracts) and Section 27B (power to make further provision in relation to zero hours workers) of the ERA 1996 in consequence of the fact that, on the commencement of section 6, definitions (including the definitions of "zero hours contract" and "zero hours arrangement"), other interpretation provisions and general provisions on making regulations applicable to Part 2A of the ERA 1996 will be contained in new Sections 27BZ2 and 27BZ3. The amendments also ensure alignment of terms used in Section 27B with the definitions in new Section 27BZ2.
	Paragraphs 10 and 11 inserts Sections 47H and 47I into the ERA 1996 to create new rights not to be subjected to a detriment on grounds related to the zero hours rights, as outlined below.
	Paragraph 12 amends section 48 of the ERA 1996 to enable complaints to be made to an employment tribunal for breach of the new rights not to be subjected to a detriment in Sections 47H and 47I of the ERA 1996. Amendments are also made to ensure that the usual provisions for bringing detriment complaints apply, for example, to provide that it is for the relevant respondent to show the ground on which any act, or deliberate failure to act, that is alleged to constitute a detriment, was done.
	Paragraph 13 amends section 49 of the ERA 1996 to make provision for the applicable remedies for successfully complaints of breaches of the new rights not to be subjected to a detriment in Sections 47H and 47I of the ERA 1996 in line with provisions for other detriment claims. In particular, amendments are made to limit compensation paid when a worker who is not an employee makes a claim because their contract or working arrangement has been terminated, to the amount that would have been payable if they were an employee dismissed for a reason outlined in section 104BA.
	Paragraphs 14 and 15 inserts Sections 104BA and 104BB into the ERA 1996 to create new grounds for automatic unfair dismissal relating to the right to guaranteed hours, as outlined below.
	Paragraph 16 amends section 105 (redundancy), by adding the reasons outlined at section 104BA as reasons by which an employee will be unfairly selected for redundancy. Reasons outlined at section 104BB in relation to agency workers are similarly included in new subsection (7BZB).
	Paragraph 17 amends section 108 (qualifying period of employment) to add reference to section 104BA. Corresponding amendments are made in respect of agency workers (and section 104BB) in new paragraph (ghb).
	Paragraph 18 amends section 184 of the ERA 1996 to add payments under section 27BP(1) of, and paragraph 22(1) of Schedule A1 to, the ERA 1996 (payments for cancelled, moved or curtailed shifts) to the list of payments that can be claimed from the Secretary of State on the insolvency of an employee’s employer under Part 12 of the ERA 1996.
	Paragraphs 19 to 23 amend Part 13 of the ERA 1996 regarding particular types of employment. This provides for the provisions inserted into the ERA 1996 by sections 1 to 5, including Schedule 1, and this Schedule to apply to House of Commons and House of Lords staff but not to those employed in police service nor to service personnel in the armed forces. By virtue of paragraph 22, the provisions will also apply to employment on board a ship registered in the register maintained under section 8 of the Merchant Shipping Act 1995, where certain conditions are met, including that the worker does not work wholly outside Great Britain.
	Paragraph 24 amends section 202 of the ERA 1996 so that, where in the opinion of a Minister of the Crown the disclosure of any information would be contrary to the interests of national security, nothing in the provisions inserted into the ERA 1996 by sections 1 to 5, including Schedule 1, and this Schedule requires disclosure of the information and no person shall disclose the information in any proceedings in any court or tribunal relating to any of these provisions.
	Paragraph 25 amends section 205 of the ERA 1996 so that complaints about breaches of the provisions inserted into the ERA 1996 by sections 1 to 5, including Schedule 1, and this Schedule are to be made to an employment tribunal and not otherwise (e.g., they cannot be made by way of a complaint in the civil courts for breach of statutory duty). The exception is complaints under paragraph 28 of Schedule A1 to the ERA 1996 inserted by Schedule 1 regarding recovery of payments from hirers, which can be instituted in the civil courts.
	Paragraph 26 amends section 206 of the ERA 1996 to ensure that, in the event of a worker’s or the employer’s death, or the death of another respondent in the case of agency workers, tribunal proceedings under the provisions inserted into the ERA 1996 by sections 1 to 5, including Schedule 1, and this Schedule can still be instituted, continued or defended as appropriate by a personal representative of the deceased.
	Paragraph 27 amends section 225 (calculation date for purposes of working out a week’s pay) to account for the calculation of a week’s pay by adding a new subsection (A1) to section 225. Where complaints are made to an employment tribunal under section 27BG(1), (2) (3), (7), which relate to a breach of the guaranteed hours rights, including where a guaranteed hours offer has not been made or one has been made but is incompliant for instance, then the calculation date is the date on which the worker was last employed by the employer under a worker’s contract. In relation to a claim under section 27BG(8) which relate to the information rights in the rights to guaranteed hours, the calculation date is the date the complaint was presented to the tribunal, if employed then by the employer, otherwise the latest date before that on which the worker is employed. A new subsection (B1) is added to section 225 to set the calculation date where a complaint is made to an employment tribunal under section 27BY(5), relating to a notice being wrongly given to withdraw a guaranteed hours offer under chapter 6 of Part 2A of the ERA (collective agreements: contracting out).
	Paragraph 28P amends section 227 (maximum amount of week’s pay) so that the statutory cap applies to an award of compensation made under section 27BI(1)(b), for a successful complaint relating the guaranteed hours rights where the compensation award is calculated using a number of week’s pay.
	Paragraph 29 amends section 235 (definitions for purposes of the Act) to amend existing definitions of ‘limited-term contract’ and ‘limiting event’ so that they also refer to an "other worker’s contract", as well as the definition of "week", which has a specific definition at paragraph 10 of Schedule A1 for those purposes instead.
	Paragraph 30 amends section 236 (orders and regulations) to provide for certain regulation-making powers introduced by sections 1 to 5, including Schedule 1, to be subject to the affirmative procedure, where appropriate.
	Paragraph 31 amends the Bankruptcy (Scotland) Act 2016 to add payments under section 27BP(1) of, and paragraph 22(1) of Schedule A1 to, the ERA 1996 (payments for cancelled, moved or curtailed shifts) to the list of payments that are treated as preferred debts when an employer becomes insolvent.
Part 1: Employment Rights Zero hours workers, etc Schedule 2 – Consequential amendments relating to sections 1 to 5