It is reported that the number of workers on zero-hours contracts hit a record high in the last three months of last year, rising by 13% to 910,000 but may now be on the decline.
A zero-hours contract is that which does not guarantee a set number of working hours, but the employee must be available for work when required - making budgeting nearly impossible and having a detrimental effect on the living standards of workers and their families.
Trade unions have regularly raised concerns about zero-hours contracts and the possibility of the exploitation of employees. In addition to the lack of guaranteed minimum working hours, the employee is not guaranteed sick or holiday pay, either. On average, workers on zero-hour contracts earn £1,000 less per annum than contemporaries in staff roles.
Len McCluskey, General Secretary of Unite – Britain’s largest union – has stated, “Let us learn from New Zealand – put workers’ welfare first and outlaw these hire and fire contracts.”
The Resolution Foundation think tank reports that the growth of these contracts may now be slowing. This could possibly be due to negative publicity surrounding companies such as MacDonald’s, Wetherspoons and Homebase, who are all well known for using them - and also in the wake of the furore reported over the use of zero-hour contracts by Sport Direct. Another factor suggested is the record high rate of employment, as after Brexit employers may struggle to find employees due to the prospect of the supply of EU labour being limited.
Sports Direct have now announced that following a review of working practices, they will scrap zero-hours contracts for casual workers. Other major employers have stated that they will also finish using zero-hour contracts or offer these workers the chance to have a fixed-hour agreement.
Employers have stated that the zero-hour contracts are popular amongst many workers as it gives them flexibility. Analysis shows that older workers, aged 55 – 64 years, accounted for almost half of the net increase in the past year. Resolution Foundation says that the challenge now is to ensure that these popular contracts are reserved for cases of genuine desired flexibility for worker and employer.
A release from the Office for National Statistics (ONS), referring to the second quarter of 2016, maintains that fewer than 3% of the UK workforce on zero-hour contracts classes itself as being on this type of contract in their main employment and 70% of those are happy with the number of hours they work.
