Zero Hours Contracts
The Queen’s speech announced on 4th
June that abuses of Zero Hours contracts are to be cracked down on. Although a
sweeping generalisation Zero Hours Contracts (ZHCs) are extremely popular with
employers and generally disliked by employees.
Although touted as providing flexibility
and freedom for employees, the reality is, unless the employee on a ZHC has an
element of financial security the arrangement is worrisome and open to abuse.
ZHCs are important for employers, they enable them to meet demand and reduce
the workforce during times when trade falls quiet without suffering the expense
of employees sitting around doing nothing.
Under a ZHC an employer is not under an
obligation to give an employee any hours, the hours supplied might vary from
week to week, or even day to day. Abuses include cancelling shifts at the last minute;
reducing hours to punish an employee and maintaining an employee can only
exclusively work for the ZHC provider and no other employer. This final
requirement strips away an right an employee may have to find financial
security elsewhere during times when hours are scarce.
Reforms have been suggested by a number
of pressure groups over the months, some want a complete ban, others want
employees to be given the right to ask for minimum hours (which in itself could
be open to abuse by employers limiting their liability and selecting the bare
minimum).
The Head of the CIPD public policy Ben
Willmott acknowledged tighter legislation is required and that there is bad
practice which needs to be address. He gave short notice cancellations as an
example and exclusivity clauses.
In a recovering economy the UK workforce
needs to show an element of flexibility and employers have to be able to
protect their businesses in order to limit the financial damage that slow
months can bring. Banning zero hours contracts could do more harm than good,
recruitment would be likely to slow and knee jerk reactions in respect of
redundancies may become the response of employers.
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