Following the publication of a new report, ‘Zero Choices: Swapping Zero Hour Contracts for Secure, Flexible Working’, GMLC campaign volunteer Seb Dawson writes on zero hours contracts and what you can do to oppose insecure and poor quality work.
A recent report produced by the University of Lancaster found a considerable increase in the use of zero hour contracts in recent years, despite the “numerous studies [which] found a link between zero hour contracts and poor mental health.” As a result, a record number of UK workers are deprived guaranteed work, income and legal protections.
What are zero hour contracts?
Zero hour contracts, as defined under section 27A of the Employment Rights Act 1966, consist of an employment agreement where neither party is mandated to work or to offer work. This relationship, at its best, should provide flexibility to both parties. For example, the hospitality industry (where 20% of workers are on zero hour contracts) can adapt to seasonal effects on consumer demand by changing working patterns, while young students (10% of all zero hour workers) can meet their financial needs without jeopardising their education. As a result, zero hour contracts are often portrayed as bastions of contractual freedom. However, the advantage of flexibility is disproportionately wielded by employers, leaving 1.1 million workers in potentially insecure work, unable to refuse shifts if they want to make a living, and yet offered no guaranteed baseline income and no consistency in their working hours.
Why are zero hour contracts so controversial?
According to the University of Lancaster’s report, 36% of zero hour workers felt they had no choice when selecting a job. This means roughly a third of zero hour contracts may not benefit the workers at all, but allow the employers to forgo sick pay and cut hours on short notice. For example, 55% McDonald’s workers, a company known for relying on zero hour contracts, said they worried about getting enough hours, and 98% said they did not receive sick pay from an employer who made $25 billion dollars in revenue this financial year. Furthermore, even those who do want zero hour contracts may never realise the benefits of flexible work. The CIPD found over a half of employers using zero hours contracts dictate the hours their employees must work. So, the majority of those on zero hour contracts may be left without any additional flexibility.
Furthermore, there is increasing evidence that when employees are given a choice, they prefer the certainty of secure work. When JD Wetherspoon offered all its employees guaranteed hours, 99% accepted (and with good reason). Three out of four people on zero hour contracts have “severely insecure work.” Such uncertainty can damage their health, hurt personal finances, make housing harder to obtain, increase the costs of childcare and travel, and create difficulties in claiming benefits. These issues also disproportionately hurt marginalised communities. Female and BAME workers are more likely to be on zero hour contracts. Thus the use of zero hours contracts may exacerbate existing class divisions within society during a cost-of-living crisis and record levels of deprivation.
Can zero hour contracts be banned?
Many countries within the EU do not allow zero hour contracts, while others impose strict restrictions on employers to prevent the abuse of workers. According to Full Fact, “[t]he UK is one of around half a dozen European countries where zero hours contracts are both legal and fairly common.” New Zealand and Norway have both completely banned their use, while France and Germany require guaranteed hours. It is therefore clearly possible to end zero hours contracts in countries with developed economies. This can benefit workers and the wider economy by reducing stresses on the system due to homelessness, welfare problems and ill effects on health caused by insecure work.
Recommendations
In their report, the University of Lancaster researchers end with 6 recommendations:
- Guaranteed hours: Require all employers to provide guaranteed contractual hours for all roles from day one.
- Flexibility for all workers: Ensure all workers have a genuine day one right to flexible working.
- Right to amended contract: Guard against employers using low-hour contracts to circumvent other requirements.
- Statutory notice period: Require employers of people working irregular hours to provide a three-week notice period of their shifts ensuring compensation for shifts changed or cancelled at late notice.
- Annual reporting on employment data: Improve transparency of employment models.
- Increase funding for labour market enforcement resourcing.
GMLC has a particular interest in the last point. Although Legal Aid is not mentioned in the researchers’ report, it is important to raise that most employment issues were taken out of scope of free legal advice and representation in 2012, and wider cuts to Legal Aid rates and funding have drastically reduced the number of employment cases brought to the courts by lower-paid workers, despite no drop-off in employer malfeasance. We would add to these recommendations that Legal Aid scope needs to be restored for employment problems, and rates should be increased to make running employment services viable for Legal Aid providers.
What can you do?
If you would like to see zero hours contracts banned, there are several options to help achieve this:
- Join the Zero Hours Justice campaign. If you are concerned about your zero hours contract, you may want to look at the Zero Hours Justice campaign, an organisation dedicated to ending insecure work. On their website, found at the link above, you can find access to free, confidential legal advice and a helpline. They have additional information on your rights and legal protections, as well as a zero hour accreditation scheme aimed at rewarding companies who do not use zero hour contracts. Greater Manchester Law Centre is accredited by this scheme.
- Sign petitions. You can sign the TUC petition against zero hours contracts here.
- Write to your MP. You can write to your MP asking that they commit to voting for more protections for workers, and for banning zero hours contracts. You can find the place to write to your MP on this website.
- Join a trade union. Trade unions have been fierce campaigners for the end of insecure work, including zero hours contracts, and can offer legal advice to workers experiencing hardship or problems at work. They also offer support to organise collectively for better conditions at your workplace, and offer a platform to campaign more widely for changes to policy and practice in employment law. You can find a trade union suitable for your type of work here, or ask your colleagues if they are in one and join the one which is active in your workplace.
- Become a member of Greater Manchester Law Centre. We campaign to fight for better employment rights, protections and practice, as well as providing vital free legal advice to employees and workers as part of our Employment Law service. Your monthly donation helps us deliver this service and sustain our campaigning work in an increasingly difficult environment, where there is far too little advice to meet the massive demand created by poor employment practices.
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Image credit: Steve Eason, Flickr, 2017.
