Zero-hours contracts ban plans face criticism from unions and employers
Ministers are facing criticism from both unions and employer groups after laying out detailed plans for a ban on zero-hours contracts. Under rules poised to come into force next year, employers will have to offer staff on zero-hours or short-hours contracts, including agency workers, a minimum number of hours each week based on their regular working hours. A consultation launched on Tuesday outlines the government’s preference that workers would be guaranteed between eight and 20 hours a week if their current contracts are at or below that level, with regular hours determined over a 12-week reference period. Workers who choose to remain on zero-hours contracts would be eligible for compensation if their shifts are changed at short notice. The changes are part of Labour’s Employment Rights Act, which became law late last year and faced opposition from the Conservatives and business groups. More than 1 million people in the UK currently work on a zero-hours contract basis. Unions expressed disappointment that the guarantee is capped at 20 hours, while employer groups warned that over-regulation could put jobs at risk, particularly for young people.
What’s reported
Ministers face criticism from unions and employers over plans for a guaranteed regular working week as part of a ban on zero-hours contracts.
Employers will have to offer staff on zero-hours or short-hours contracts, including agency workers, a minimum number of hours based on regular working hours.
The government’s preference is a minimum guarantee of between eight and 20 hours per week for workers whose current contracts are at or below that level.
Regular hours would be determined over a 12-week reference period under the government’s preferred option.
Workers may choose to stay 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 pubs, restaurants, warehouses, and hospitals.
The changes are part of Labour’s Employment Rights Act, which became law late last year.
Business secretary Peter Kyle stated the changes will provide more certainty for workers and save the lowest paid hundreds of pounds.
Unions, including Usdaw and the TUC, criticized the 20-hour cap, saying it falls short of manifesto commitments and leaves many without stability.
Employer groups, including UKHospitality and the British Retail Consortium, warned that over-regulation could reduce hiring, especially for young people, and called for a longer reference period (e.g., 26 weeks).
Conflicting accounts
The source article reports conflicting views:
Unions say the 20-hour weekly cap is insufficient and does not deliver on the government’s manifesto promise to give all workers the right to a guaranteed hours contract.
Employer groups argue that a 12-week reference period is too short for seasonal work, that classifying contracts up to 20 hours as “low-hours” is disproportionate, and that requiring four weeks’ notice for shift changes is unrealistic in retail.
Open questions
The article does not specify when next year the rules are expected to come into force or how compensation for short-notice shift changes will be calculated. It also does not clarify whether the final reference period will remain at 12 weeks or be extended following the consultation.
Key figures
Peter Kyle, business secretary
Joanne Thomas, general secretary of Usdaw (shopworkers’ union)
Paul Nowak, general secretary of the Trades Union Congress (TUC)
Kate Nicholls, chair of UKHospitality
Helen Dickinson, chief executive of the British Retail Consortium (BRC)
Sources: The Guardian
