Campaigners urge UK ministers to proceed with ban on zero-hours contracts
Signatories argue the Employment Rights Act is essential for reducing child poverty and providing workers with income security, while business groups warn that reduced flexibility will deter hiring and harm economic growth.
Eight campaign and union organisations, including the Trades Union Congress and the Child Poverty Action Group, have written to the UK Department for Business and Trade urging ministers to proceed with a ban on zero-hours contracts. The signatories argue that the Employment Rights Act, which received royal assent last year, is essential for reducing child poverty and providing workers with income security.
Business groups, including the British Retail Consortium and UKHospitality, oppose the ban, warning that reduced flexibility will deter hiring and harm economic growth. A new report by the Institute of Directors indicates that 86% of business leaders believe the Employment Rights Act will negatively impact UK economic growth, an increase from 72% a year ago.
Business Secretary Peter Kyle has delayed the consultation process, with submissions expected before the end of summer and new rules planned for implementation next year. The department will ask for submissions before the end of the summer, before implementing new rules next year.
Lord Wolfson, chair of retailer Next, stated that while he supports eliminating zero-hours contracts in most sectors, he fears the new rules could be costly for retailers because they might be forced to contract for hours permanently. More than one million people in the UK currently work on zero-hours contracts, with hundreds of thousands having worked for the same employer for years.
The TUC clarified that the right to a regular-hours contract would not affect holiday jobs, as it is based on a reference period over several months to even out peaks and troughs. Other signatories to the letter include the Fawcett Society, the Work Foundation, 38 Degrees, and the Young Women’s Trust.
A report by former health secretary Alan Milburn, due on Thursday, is expected to accuse the government of failing to meet the needs of young people not in work, education, or training. This adds further pressure on Kyle to demonstrate that new employment laws will support job creation.
Paul Nowak, the TUC general secretary, said many workers do not know how much they will earn each week, and lack of security over hours makes it hard for workers to plan their lives, budget and look after their children. Alison Garnham, chief executive of the Child Poverty Action Group, said these new rights could be a key tool in the fight against child poverty.