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Expert HR Solutions provide various HR support services for businesses of all sizes.
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Potential Alterations in Employment Legislation
The Labour Party has backtracked on its proposal to ban zero-hours contracts, instead claiming “flexibility can’t all be one way”.
The proposed ban of zero-hours contracts had formed part of Labour’s New Deal for Working People, a series of reforms to “strengthen workers’ rights”, including banning fire and rehire practices and introducing the ‘right to switch off’. In a speech to the Association of British Insurers shadow chancellor Rachel Reeves said: “After 12 weeks if you’ve been working regular hours, you’ll be able to get that permanent contract. But if you want that flexibility as a worker, you can remain on the contract you’re on.” She said businesses have “nothing to fear”, stating: “There’ll be nothing in Labour legislation that would stop employers from using overtime, or taking workers on a seasonal basis to fulfil demand at Christmas or during summer.”
The UK needed a “reform of employment rights”, she said, adding: “There is now a mountain of economic evidence that fair pay and in-work security are crucial, not only to fairness and dignity but to our productivity too. “More secure work results in a more motivated workforce, but also workers who are more willing to move jobs because they can be guaranteed the security of work.”
Should zero-hours contracts be banned?
There are powerful arguments on either side of this argument says Chris Wilkinson from Expert HR Solutions. The centre ground he argues is a nuanced approach to balancing flexibility and stability in the workforce. By offering workers the option for a permanent contract after 12 weeks of regular hours, they aim to provide a safety net without completely eliminating flexibility. This acknowledges the diverse needs of both workers and businesses, potentially easing anxieties for workers while maintaining some flexibility.
Others argue that zero-hours contracts “have their place” and can be useful for those who want greater flexibility or who have intermittent availability. A complete ban on zero-hours contracts could have a negative impact on availability of work. Some sectors may be less likely to advertise vacancies or cut contracts short through fear they will be forced to offer permanent contracts. Good employers using such contracts give notice of work rotas and cancellation of shifts. It is also true that some employees like the flexibility of being able to turn down work that does not fit their life requirements.
However, Henry Chango Lopez, general secretary of the IWGB Union, which represents gig economy workers, says the move represents a “watering down” of commitments made by Labour. He continues “workers are often forced to accept poor conditions and precarious contracts across sectors due to desperation and extreme power balances between employers and employees in the UK.”
He says the new proposals would enable this power imbalance to “persist.”
If you want advice on this or any other employment law issue please call on 01202 611033, it’s free.
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