Government details zero-hours contract ban plan, draws criticism from both unions and businesses
The UK government has detailed plans for banning zero-hours contracts, proposing that employers guarantee a minimum number of weekly hours based on regular working patterns. The rules, set to take effect next year, would apply to workers on zero-hours or short-hours contracts, including agency staff. Under the government’s preferred option, workers would be guaranteed between 8 and 20 hours a week if their current contract is at or below that level, with regular hours determined over a 12-week reference period. Workers could choose to remain on a zero-hours contract but would receive compensation for last-minute shift changes. The changes are part of Labour’s Employment Rights Act, which became law late last year and faced opposition from Conservatives and business groups. Both unions and employer groups have criticised the plans. Unions expressed disappointment that the guarantee is capped at 20 hours, arguing it falls short of manifesto commitments. Employer groups warned that over-regulation could reduce job opportunities, particularly for young people, and called for a longer reference period to reflect seasonal work.
What’s reported
Ministers are facing criticism from unions and employers over plans for a guaranteed regular working week as part of a ban on zero-hours contracts.
Under rules set to come into force next year, employers must offer staff on zero or short-hours contracts a minimum number of hours based on regular working hours.
The government’s preferred option is to guarantee 8-20 hours a week if current contracts are at or below that level.
Regular hours would be determined over a 12-week reference period.
Workers can choose to be on zero-hours contracts but will be eligible for compensation if shifts are changed at short notice.
Over 1 million people in the UK work on zero-hours contracts, in sectors including hospitality, warehouses, and hospitals.
The changes are part of Labour’s Employment Rights Act, which became law late last year.
Unions, including Usdaw and the TUC, criticised the 20-hour cap and called for stronger guarantees.
Employer groups, such as UKHospitality and the British Retail Consortium, warned that the plans could reduce hiring and harm young workers.
Conflicting accounts
The source article presents conflicting views: unions argued that the 20-hour cap is insufficient and workers should have the right to a guaranteed-hours contract, while employer groups warned that over-regulation could reduce hiring, increase costs, and harm workers, especially young people. The government’s consultation aims to address these concerns.
Open questions
It is unclear whether the government will adjust the proposed 20-hour cap or the 12-week reference period following the consultation. The article does not specify when final regulations will be published.
Key figures
Peter Kyle, business secretary
Joanne Thomas, general secretary of the shopworkers’ union Usdaw
Paul Nowak, general secretary of the Trades Union Congress
Kate Nicholls, chair of UKHospitality
Helen Dickinson, chief executive of the British Retail Consortium
Sources: The Guardian
