UK government consults on banning exploitative zero-hours contracts

(Alliance News) - The UK government has launched a consultation on plans to end exploitative zero-hours contracts it says will help deliver reforms to benefit more than 18 million workers who face uncertainty over their weekly hours and earnings.

The move follows evidence that some shifts are cancelled the night before or even when people are on their way to work.

Almost three in five workers who have variable hours receive less than a week's notice of their shifts, according to the Living Wage Foundation.

Ministers said the reform will help save workers in some of the most deprived areas up to GBP600 in lost income from the hidden costs of insecure work.

While those who value the flexibility of a zero-hours contract will still be able to choose one, exploitative arrangements, where employers take all the flexibility and workers bear all the risk, will be banned.

Business Secretary Peter Kyle said: "It's not right that people can work regular hours but still have no certainty about their pay from week to week. These vital changes will mean more certainty for millions of people and will save the lowest paid workers hundreds of pounds.

"Banning exploitative zero-hours contracts is totemic because this government believes that people should be treated with dignity and respect at work.

"We're consulting because we need to get the detail right to ensure these reforms work in practice and guard against unintended consequences from this major change to the labour market."

Employment Rights Minister Kate Dearden said: "Ending uncertainty over hours and pay is one of the best ways we can boost living standards for millions of people and families across the country. These reforms put workers in the driving seat, giving those who want guaranteed hours the certainty they deserve, whilst protecting others who prefer the flexibility a zero-hours contract offers."

Ben Willmott, head of public policy at the CIPD, Chartered Institute of Personnel & Development, the professional body for HR, said: "Well-managed, zero-hours contracts provide welcome flexibility for employers and people who want to work but cannot commit to fixed hours – including students, carers and those managing health conditions.

"It's really important that there's meaningful consultation on these new rights, including the reference period which will be used to decide the number of guaranteed minimum hours a zero-hours contract worker will be entitled to.

"If the final regulations are too difficult to manage, employers will simply find other ways to achieve workforce flexibility."

Alice Martin, of the Work Foundation at Lancaster University, said: "The publication of this consultation marks an important step towards strengthening protections for workers in insecure employment.

"It is essential that these reforms deliver meaningful change for the growing number of people who lack certainty over their hours, income and working patterns. Many workers have already waited years for these reforms and still face a considerable delay before new rights are introduced. The government should move swiftly once the consultation concludes and provide a clear timetable for implementation."

Joanne Thomas, general secretary of the shop workers union Usdaw, said: "It is deeply disappointing that the government is intending to not give all workers the right to a guaranteed hours contract, despite that being the very clear manifesto commitment.

"Usdaw will be engaging with the consultation and putting forward a strong case for the right to be applied to all workers.

"We urge ministers to reconsider their preferred option and apply the right to all workers, as they promised to the electorate."

TUC General Secretary Paul Nowak said: "Ministers must stand firm and crack on with delivering new rights to guaranteed hours in full. For too long, insecure work has held back our economy, leaving workers worried sick about not getting enough hours to pay the bills. Workers should know how much they'll be earning from week to week instead of being at the whim of a bad employer who could cut shifts last minute. That's the kind of security you can build a life on.

"It's vital the government ignores the bad faith scaremongering and gets on with delivering the change it promised. Business groups calling on the government to row back on its manifesto promises are defending a broken status quo which has failed the economy and failed working people."

Ruth Wilkinson, of the Institution of Occupational Safety & Health, said: "A ban on zero-hours contracts is long overdue. Such contracts make workers increasingly vulnerable in terms of their physical and mental health, as they add a huge degree of uncertainty around the duration of employment and unpredictable working hours."

By Alan Jones, Press Association Industrial Correspondent

Press Association: Finance

source: PA

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