The government has launched a consultation into the use of zero-hours contracts, following public and Parliamentary concern over whether there is abuse of such employment contracts.
Its consultation is seeking ways to prevent any abuse and to maximise opportunities, both for employers seeking to create jobs and for individuals to get work that suits them.
The government is seeking views on the following options:
- Legislating to ban the use of exclusivity clauses in contracts that offer no guarantee of work.
- Government issuing guidance on the fair use of exclusivity clauses.
- Encouraging the production of an employer-led code of practice on the fair use of exclusivity clauses, with an additional option to seek government sponsorship of that code.
- Rely on existing common law redress, which enables employees to challenge exclusivity clauses.
After considering the responses, the government will publish a formal response to the issues identified through this consultation, including information on what further action government intends to take.
Vince Cable, secretary of state for business, innovation and skills, said: “Zero-hours contracts have been used responsibly in some sectors for many years.
“They can support business flexibility, making it easier to hire new staff and providing pathways to employment for young people. These contracts and other flexible arrangements give individuals more choice and the ability to combine their work with their other commitments.
“But this government has always been clear that we will address and crack down on any abuse or exploitation of individuals in the workplace.
“The government therefore seeks to maximise the opportunities of zero hours contracts while minimising abuse and setting core standards that protect individuals.
“This consultation document sets out the issues we have identified so far, seeks further evidence and invites views on a range of potential actions government and employers can take.”
Neil Carberry, director of employment and skills at the Confederation of British Industry, added: “The government has recognised the important role that zero-hours contracts play in the UK labour market.
“These contracts have helped to save jobs through tough economic times and enabled organisations to respond rapidly to new opportunities over recent months.
“Zero-hours contracts offer a choice to those who want flexibility in the hours they work, such as students, parents and carers, and provide a stepping stone into the jobs market for those most vulnerable to long-term unemployment.”
We are glad to see the government has resisted a heavy handed approach to zero-hours contracts. Focusing on a limited number of areas allows best practice examples of their use to continue.
Targeting areas such as transparency and contracts that tie workers to a single employer, where it is not justified on competition grounds, will stamp out the bad practice highlighted in recent months, and shine the spotlight back onto the many beneficial flexible working arrangements that exist between employers and their employees.
Vince Cable’s decision to rule out a complete ban on zero-hours contacts will be welcomed by employers and employees across the UK. Our recent Forgotten Workforce revealed that UK workers crave greater control over their working life, so a crackdown on exclusivity deals, rather than an outright ban will no doubt be viewed as a positive.
However, while zero-hours contracts have benefits such as increased flexibility for both employees and employers alike, this is no substitute for control. In the long-run, organisations need accurate, real-time visibility across their whole workforce. Managers need to understand the importance of being in control of when employees are working, where they have been deployed and the skill sets at their disposal.
As the zero-hours debate continues, people will continue to sit on both sides of the fence about the positives and negatives of such contracts. However, one thing is for certain – with 250,000 employees on zero-hours contracts and no signs of this figure decreasing, the onus must be on managers to ensure that they are managing this workforce as best as possible. This includes reviewing the technology they use to manage their workforce, such as workforce management solutions, which can provide both employees and employers with the flexibility and control over their working hours that they desire.