New restrictions will be placed on zero-hours contracts as part of the government’s “new deal for working people”.
Zero-hours contracts are regarded as a flexible option for both employers and employees.
With zero-hours contracts, businesses do not have to guarantee weekly hours, and workers are not obliged to work when asked to.
Being able to fit work around studies and exams makes zero-hours contracts particularly popular with students and young people.
In 2023, 65 per cent of zero-hours contracts were held by 16 to 24 year olds.
If passed, the Employment Rights Bill will give employees the right to a guaranteed hours contract if they work regularly for a defined period of time, but will not introduce an outright ban on zero-hours contracts.
The reform aims to increase earnings security without removing the option of flexibility for those who prefer it.
Many businesses have expressed support for the bill, with Simon Roberts, Chief Executive of Sainsbury’s, saying the company shares “the Government’s vision of making work pay”.
However, there remains some concern over the cost of transferring workers from zero-hours contracts to regular-hours contracts.
Witan Solicitors have estimated potential costs to the hospitality sector of £1.49 billion.
They say that the reforms to zero-hours contracts could put significant pressures on small businesses, including independent pubs and bars, where demand can be unpredictable from one week to the next.
Other reforms proposed in the Employment Rights Bill include banning “fire and rehire” schemes, and extending parental and bereavement leave rights.
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