But 'urgent legislative action' needed to further protect workers’ rights
Workers on zero-hours contracts should be given a fixed-hours agreement after a year, according to recommendations made by the Resolution Foundation think tank.
In its inquiry, the Resolution Foundation rejected calls by unions and other parties for a total ban on the contracts, which fail to offer guaranteed working hours, leading to accusations of abuse.
Its report, entitled ‘Zeroing In: Balancing protection and flexibility in the reform of zero-hours contracts’ states there is a need “to strike a better balance, providing protection and choice for workers while ensuring flexibility is maintained for employers”.
Alongside suggesting that zero-hours workers receive the right to a fixed-hours contract after a year, the think tank recommends imposing a ban on the use of exclusivity clauses, ending the practice where employers don’t guarantee hours yet prevent staff from taking work on elsewhere.
It also advocates that everyone employed on a zero-hours contract should receive a statement of employment particulars, so that they are fully aware of the nature of their contract and its associated entitlements.
The Resolution Foundation’s report highlights the gaps in knowledge many employers have around their obligations under zero-hours contracts; calling for Acas and unions to develop a non-statutory good practice guide. Better funding and sharing of information to identify any abuses of these arrangements would also clarify the issue, it adds.
Last year, business secretary Vince Cable promised to review the growing use of zero-hours contracts, while Labour leader Ed Miliband vowed to outlaw arrangements where zero-hours workers could only work for one employer. A recent consultation on the issue by the Department for Business, Innovation and Skills attracted more than 30,000 responses.
Also last year, the CIPD estimated that there are around one million people, or 3 per cent of the total workforce, on zero-hours contracts. Its survey looking into their use found that – contrary to some reports – most workers did not feel exploited and were satisfied with their jobs under these arrangements.
However, TUC general secretary Frances O’Grady said that “urgent legislative action” was needed to address abuses of these contracts.
Commenting on the Resolution Foundation report, she said: “The report includes some welcome recommendations… We agree with the Resolution Foundation that individuals working regular hours should be offered a contract containing fixed hours, but they should not have to wait 12 months for increased job and income security.”
“The TUC would like the government to go further and ensure that staff on zero-hours contracts are properly rewarded for the flexibility they offer employers and that they get the same basic workplace rights as employees.”