The Labour Party government has unveiled plans to reform zero-hours contracts, proposing a new rule that would guarantee a minimum number of working hours for employees, including agency workers. This change aims to provide more stability for over one million people currently employed under zero-hours contracts across the UK.
Under the proposed legislation, expected to take effect next year, employers would be required to offer contracts with a guaranteed minimum number of hours, ideally ranging between eight and twenty hours weekly, reflecting an employee’s typical work pattern.
Business Secretary Peter Kyle emphasized the need for this reform, stating, “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.”
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However, the plan has drawn criticism from various quarters. Joanne Thomas, General Secretary of the shopworkers’ union Usdaw, expressed disappointment that not all workers would receive guaranteed hours, despite it being a clear manifesto promise. She highlighted the precarious situation of many members who work beyond their contracted hours only to lose them at their employer’s discretion, leading to instability and insecurity.
Paul Nowak, General Secretary of the Trades Union Congress (TUC), supported the reforms, saying, “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.”
On the other hand, industry representatives voiced concerns. Kate Nicholls, Chair of UKHospitality, warned that excessive regulation of flexible working could inadvertently increase job instability, undermining efforts to boost employment. Helen Dickinson, CEO of the British Retail Consortium (BRC), cautioned that while targeting exploitative employers is necessary, adding burdensome rules risks deterring responsible businesses from hiring, especially with over a million young people currently out of work or education.
The government is currently consulting broadly to fine-tune these proposals to avoid unintended negative consequences on the labor market while improving working conditions and pay certainty for vulnerable employees.