Zero-hours contracts: ministers’ detailed plans for ban criticised by firms and unions | Zero-hours contracts
Ministers are facing criticism from unions and employers after revealing details of plans for a guaranteed regular working week as part of a ban on zero hours contracts.
Under the rules that will come into force next year, employers will have to offer staff, including agency workers, a contract that guarantees a minimum number of working hours each week in line with normal working hours.
During a consultation on how to implement the zero-hours ban, which launched on Tuesday, the government said its preference was for workers to be guaranteed between eight and 20 hours a week.
Businesses must determine a worker’s normal working hours over a 12-week reference period under the government’s preferred option.
Workers will be able to choose a zero-hours contract but will be entitled to compensation if their shifts are changed at short notice.
More than 1 million people in the UK work on a zero-hours contract in a variety of areas, from pubs and restaurants to warehouses and hospitals; In this system, workers are not guaranteed minimum working hours.
The changes are part of Labour’s Employment Rights Bill, which became law late last year. The workers’ rights package has faced significant opposition from Conservatives and business groups.
Finance Minister Peter Kyle said: “It is not right that people can work normal hours but still have no certainty about the pay they will receive from week to week. These vital changes will mean greater certainty for millions of people and save the lowest paid workers hundreds of pounds.
“We are consulting because we need to get the details right to ensure these reforms work in practice and to protect against the unintended consequences of this major change in the labor market.”
Unions said they were disappointed that the government supported the right to guarantee no more than 20 hours of work per week; this may be less than half the normal working hours of some employees currently on zero-hours contracts.
Joanne Thomas, general secretary of shop workers union Usdaw, said: “It is deeply disappointing that the government intends to deny all workers the right to a guaranteed hours contract, despite a very clear manifesto commitment.
“Many of our members are on short-term contracts and routinely work many more hours than contracted. These additional hours may be removed at the employer’s discretion, leaving workers without stability or security.”
He said young people, women, disabled workers and people from minority communities were disproportionately affected by zero- and short-hour contracts.
The Trades Union Congress has warned the government that listening to some “malicious intimidation” during guaranteed hours could leave many workers facing ongoing job insecurity.
TUC general secretary Paul Nowak said: “Workers need to know how much they will earn from week to week, rather than being caught up in the whims of a bad employer who may cut shifts at the last minute.”
But employer groups have warned that over-regulation could put jobs at risk, especially for young people who already face employment shortages. They called for a longer reference period and sought protection of their right to use zero-hours contracts in some cases.
Kate Nicholls, chief executive of trade body UKHospitality, which represents thousands of restaurants, cafes, bars and hotels, said maintaining access to zero-hours contracts was “crucial”.
He said a 26-week reference period would be “a fairer and more accurate reflection of team members’ regular working patterns”, taking into account the seasonal nature of work in the hospitality industry.
“There is a danger that over-regulation of flexible working could actually increase rather than reduce job instability, which could undermine the government’s agenda to get people back to work,” he said.
Helen Dickinson, chief executive of the British Retail Consortium, which represents most major retailers, said: “With more than a million young people unemployed or uneducated, the government cannot afford to make this mistake.
“Certainly crack down on bad employers, but not by adding costs and rules that deter good employers from hiring.”
The BRC said a 12-week reference period could give retailers little choice but to reduce the number of part-time workers they take on during busier periods such as Christmas. It added that classifying contracts of up to 20 hours as ‘low hours’ would be “disproportionate” and giving up to four weeks’ notice for shift changes would be “contrary to retail realities”.
