Employment experts call for ‘balanced debate’ on controversial practice
The number of people on zero hours contracts for their main job has increased to 744,000, representing 2.4 per cent of all people in employment, according to the Office for National Statistics (ONS).
Figures show that 744,000 people were on these contracts in the three months to June 2015, up from 624,000 people in the preceding quarter.
However, ONS said that two-thirds of the growth in these contracts is from people who have been in their job for more than a year, indicating that the overall increase is not necessarily due to new contracts. ONS analysts said the rise could have been caused by increases in recognition or people moving on to a zero hours contract with the same employer.
More women (54 per cent) were found to be on these types of contracts than men (47 per cent), while students commonly reported having this type of working arrangement (20 per cent of people on zero hours were in full time education).
John Cridland, CBI director-general, said: “The focus should be on tackling bad practice, as the number of zero hours contracts is less important than ensuring that they benefit both the individual and their employer.
“These figures, which show zero hours contracts are a small proportion of the UK labour market, again illustrate that they are most common among groups where flexibility benefits both parties. For example, more than one third are young people taking their first steps in the labour market.
“Labour market flexibility continues to be a great asset to the UK economy, helping to increase the participation rate of parents - women in particular - and of older workers.”
Gerwyn Davies, CIPD Labour Market Adviser at the CIPD, said: “It is important that the debate about zero-hours contracts is a balanced one, which recognises that when managed well, these contracts can benefit both employers and workers.”
CIPD research has found that zero-hours workers, when compared to the average UK employee, are just as satisfied with their job (60 per cent compared with 59 per cent), happier with their work-life balance (65 per cent compared with 58 per cent), and less likely to think they are treated unfairly by their organisation (27 per cent compared with 29 per cent).
However, the institute’s research also showed one in five zero-hours workers reported that they are sometimes (17 per cent) or always (3 per cent) penalised if they are not available for work. And almost half said they are given almost no notice at all or find out at the beginning of an expected shift that work has been cancelled.
The CIPD said that the ban on the use of exclusivity clauses should reduce instances where zero hours workers feel exploited, however, it urged employers who do use these arrangements to manage them carefully.
With this in mind, the institute recommended employers conduct regular reviews to determine how appropriate they are for the nature of the work being done, and whether such arrangements offer the right balance of shared flexibility for the employer and employee. It also suggested paying zero-hours workers travel expenses and giving them at least one hour’s pay where work is cancelled at short notice as well as ensuring these employees are paid at comparable rates to anyone else doing similar work.
And to ensure that the reality of the employment relationship matches the contract and that the employment rights of zero-hours workers are recognised, the CIPD recommended training line managers who look after staff on these types of contracts.