Government seeks end to ‘exploitative’ zero hours contracts

Many people on zero hours contracts could be hundreds of pounds better off as a result of planned changes, the government believes.

Ministers want to reform the system so that employers can no longer lock people into “exploitative” working arrangements.

The government says this will give people more certainty over their working hours and earnings, so they’re better able to plan their finances and daily lives.

Estimates suggest that the reforms could help workers in some of the most deprived areas save up to £600 in lost income.

What are zero hours contracts?

A zero hours contract is an employment contract that doesn’t guarantee a minimum number of working hours.

This means there’s a risk that your hours might drop unexpectedly and without warning.

So you could go very suddenly from having almost a full time wage to having no pay.

This kind of contract also very often involves working different hours each week, so it can be hard for people to plan their schedules.

Zero hours contracts aren’t being banned completely

We should stress that the government isn’t proposing an outright ban on zero hours contracts.

Instead, the aim is to make sure those who want guaranteed hours get this certainty and security, while still protecting those who prefer the flexibility of a zero hours contract.

People who qualify will also be entitled to what the government considers "reasonable notice" of their schedules and compensation for shifts cancelled with short notice.

As employment rights minister Kate Dearden puts it, the changes will “put workers in the driving seat”.

Share your views

The government has launched a consultation on the proposals and is inviting both employers and workers to respond.

If you’re interested in sharing your opinions, you have until 25 August to take part.

“We need to get the detail right to ensure these reforms work in practice and guard against unintended consequences from this major change to the labour market,” said business secretary Peter Kyle.

He added that banning exploitative contracts is “totemic because this government believes that people should be treated with dignity and respect at work”.