The Labour Party has reversed its decision to ban zero-hours contracts, stating that “flexibility can’t all be one way”.
The initial plan to ban zero-hours contracts was part of Labour’s New Deal for Working People, aiming to improve workers’ rights. This included prohibiting fire and rehired practices and introducing the ‘right to switch off’. However, the move has been criticized for being diluted after the reversal.
It’s possible that the Labour Party realized that many of the councils and governments it runs would be affected. In Flintshire, for example, many casual and part-time staff, especially in social care, are on zero-hours contracts. Reversing these contracts to comply with the new legislation might be a massive and costly undertaking.
Also, some of those roles are very discriminatory and pay under the NLW, which the party leaders have spoken out on several occasions. They built this legislation to target unlawful employers and protect said workers.
Labour also speaks heavily about raising the wage in the care sector, but that will still cripple those on a low income if the PTA stays at £12,500, as you will give on the one hand and receive tax on the other.
Additionally, various independent surveys and HR organizations have shown that employers and employees rely on zero-hours contracts for flexibility and that some industries rely on these contracts to stay afloat.
The benefits of zero-hours contracts (ZHC) outweigh the downsides for most workers.
According to CIPD research, workers on zero-hours contracts (ZHCs) report better work-life balance and well-being than other workers. However, improved enforcement of employment rights is needed to protect those who are treated unfairly.
Many businesses, government departments, schools, healthcare institutions, and other employers, both well-known and lesser-known, use zero-hours contracts to employ large numbers of people for flexibility.
Some employers directly hire zero-hours workers, while others use employment agencies or contractors to employ them legally. These agencies or contractors typically hire cleaners and other workers to perform services for the client employer on zero-hours contracts.
Many businesses and organizations use zero-hours contracts to facilitate flexible and hybrid working plans and to stay competitive.
Zero-hours contracts provide employment opportunities for those unable to commit to regular working hours due to ill-health, caregiving responsibilities, or studying needs.
However, banning zero-hours contracts could disadvantage the majority of workers who benefit from their flexibility and, in some cases, limit access to employment altogether.
Zero-hours contracts’ varied benefits and downsides call for a more balanced debate on their place in the labour market.
Additionally, the government must ensure that insecure and low-paid workers receive additional financial support to help them cope with the cost-of-living crisis in the coming months.
Please take note of the following information correlated by the CIPD:
Positives:
– 62% of zero-hours workers are satisfied or better with their jobs, compared to 66% of other employees.
– Most zero-hours workers are treated as employees by their employers and have full employment rights based on their length of service.
– Zero-hours workers report better work-life balance, are under less stress at work, and are less likely to report excessive workloads than other workers.
Challenges:
– Hourly pay for zero-hours workers is about 6% lower than that of other contract workers, considering factors like age and experience.
– 48% of employers of zero-hours workers do not compensate for cancelled shifts with less than 24 hours’ notice.
– Only 57% of zero-hours employers allow them to turn down work in practice, putting pressure on a significant minority to accept all offered hours.
Regarding labour’s new legislation, it is expected to impose more obligations on employers, particularly in zero-hours contracts.
Under the AWR 2010 
- 5.1 an agency worker – shall be entitled to the same basic working and employment conditions as A would be entitled to for doing the same job had A been recruited by the hirer—
- 12-(1) An agency worker has, during an assignment, the right to be treated no less favourably than a comparable worker in relation to the collective facilities and amenities provided by the hirer.
- You have the same right as other workers and employees to at least 5.6 weeks’ paid holiday each ‘leave year’ when you’re on an assignment.
- The leave year is how an employer works out how much holiday a year you’re entitled to and when you should take it by. When you’re an agency worker, the leave year usually runs from the date you started your assignment. You ‘accrue’ (build-up) holiday entitlement from the first day of your assignment. You also have the right to get paid for any holiday you’ve not taken if you leave the agency.
- Your employment rights from the start – Agency workers – Acas
Perhaps Labour should focus on doing the necessary groundwork rather than seeking attention-grabbing headlines.
Our workforce needs stability, creativity, and flexibility to rebuild Britain.
Zero-hour contracts have their place and can benefit those seeking greater flexibility.
Let’s speak to the people who are the backbone of this great nation and strive for innovative ideas and change to stimulate growth from the grassroots upwards.
Only Reform UK has the creativity and innovative ideas to drive change and stimulate growth from the grassroots foundational level upwards in our local community economy.
In our contract with you, we promise to:-
- Make Work Pay. Lift the Income Tax Start Point to £20,000 Per Year. This would free up to 7 million people from paying Income Tax and save every worker almost £1,500 per year.
- Abolish IR35 Rules to Support Sole Traders Britain’s self-employed often work longer hours and take more risks. Many have no pension and receive no sick pay.
- Motivate up to 2 million People Back to Work. Reforms to benefit support and training will help people get back into work. Particular focus on 16–34-year-olds. Employment is critical to improving mental health—tax relief for apprenticeship businesses.
- Introduce Urgent Pay Review Increase basic pay across our armed forces to boost recruitment and retention. It is unacceptable that a private soldier is paid less than an Amazon worker.
Work with those affected by these changes, “Its people,” to build a future we can be proud of and make Britain great again.
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