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Ministers are facing criticism from unions and employers after laying out details of plans for a guaranteed regular working week as part of a ban on zero-hours contracts, according to reports. Under rules poised to come into force next year, employers will have to offer staff, including agency workers, a contract that guarantees a minimum number of hours each week based on their regular working hours.The government launched a consultation on Tuesday on how to implement the ban, stating its preference that workers would be guaranteed between eight and 20 hours a week. Businesses should determine a worker's regular hours over a 12-week reference period under the government's preferred option. It will be possible for workers to choose to remain on a zero-hours contract, but they will be eligible for compensation if their shifts are changed at short notice.
Coverage Comparison
Reporting on the story highlights a split between campaigners and business groups over the proposed changes. The Guardian reports that campaigners, including the Child Poverty Action Group (CPAG) and the TUC, have written to the Department for Business and Trade urging the government to "ignore the noise" from businesses that want zero-hours contracts to remain. Their letter, signed by eight organisations, calls on ministers to press ahead with the ban despite business warnings that it would deter hiring and lock out more young people from the labour market.Meanwhile, business groups have expressed concerns about the impact on flexibility and jobs. The British Retail Consortium and UK Hospitality have written to Business Secretary Peter Kyle arguing that reduced flexibility in work contracts will lead to fewer jobs. A new report by the Institute of Directors shows that 86% of business leaders believe the Employment Rights Act will have a negative impact on UK economic growth, up from 72% a year ago.
The consultation process itself has faced delays, with Peter Kyle overseeing a postponement of the planned launch that was originally due in January. It is understood the department will ask for submissions before the end of the summer, before implementing new rules next year. Business leaders are concerned that delays will not give them time to adjust their workplace practices.
The changes are part of Labour's Employment Rights Act, which gained royal assent last year. Many of the detailed provisions were left blank, allowing ministers to phase in implementation over a period of years. The package faced significant opposition from the Conservatives and business groups.
Key Claims
- More than 1 million people in the UK are working on a zero-hours contract basis, in areas ranging from pubs and restaurants to warehouses and hospitals, as reported by The Guardian.
- The government's preferred option is to guarantee workers between eight and 20 hours a week, according to the same source.
- Employers will have to offer contracts guaranteeing a minimum number of hours based on regular working hours under rules poised to come into force next year.
- Campaigners, including CPAG and the TUC, have urged the government to "ignore the noise" from businesses, as reported by The Guardian.
- The Institute of Directors found that 86% of business leaders believe the Employment Rights Act will have a negative impact on UK economic growth, according to The Guardian.
- Peter Kyle, the business secretary, said: "It's not right that people can work regular hours but still have no certainty about their pay from week to week. These vital changes will mean more certainty for millions of people and will save the lowest paid workers hundreds of pounds."