UK Government's Zero-Hours Contract Ban Faces Criticism

The Lead

The UK government's plans to ban zero-hours contracts have faced criticism from both unions and employers. The proposed rules, set to come into force next year, would require employers to offer staff a contract guaranteeing a minimum number of hours each week based on their regular working hours.

Government's Preferred Option

Under the government's preferred option, businesses would determine a worker's regular hours over a 12-week reference period. The government has suggested that workers would be guaranteed between eight and 20 hours a week.

The Data Analysis

More than 1 million people in the UK are working on a zero-hours contract basis, where a worker is not guaranteed a minimum number of working hours. This affects areas ranging from working in pubs and restaurants to warehouses and hospitals.

The Impact Analysis

Unions have expressed disappointment that the government is only guaranteeing a minimum of 20 hours a week, which could be less than half the regular working hours of some currently on zero-hours contracts. Employers have warned that over-regulation could put jobs at risk, especially for young people who are already facing an employment squeeze.

The Prediction

The changes are part of Labour's Employment Rights Act, which came into law late last year. The package of workers' rights faced significant opposition from the Conservatives and business groups. The government is consulting on the details to ensure the reforms work in practice and guard against unintended consequences.