Labour government faces united pressure over zero-hours contract ban details

UK ministers are navigating significant political and economic headwinds following the release of detailed implementation plans for the ban on zero-hours contracts. The government’s consultation, launched on Tuesday, proposes that workers be guaranteed between eight and 20 hours per week, calculated over a 12-week reference period. The proposal has drawn sharp criticism from both trade unions and employer groups, who argue the measures are either insufficient to protect workers or overly burdensome for businesses.

The changes form part of the Employment Rights Act, which received Royal Assent late last year after facing substantial opposition from the Conservative Party and business interests. Peter Kyle, the business secretary, defended the consultation process, stating that the reforms aim to provide certainty for millions of workers and save the lowest-paid employees hundreds of pounds. He emphasised that the government is seeking to get the details right to avoid unintended consequences in the labour market.

Under the preferred option, employers would be required to offer staff, including agency workers, contracts guaranteeing a minimum number of hours based on regular working patterns. While workers may still voluntarily choose zero-hours contracts, they would be eligible for compensation if shifts are altered at short notice. More than one million people currently work on such contracts across sectors including pubs, restaurants, warehouses, and hospitals.

Unions have expressed deep disappointment with the 20-hour cap, arguing it fails to meet manifesto commitments. Joanne Thomas, general secretary of Usdaw, noted that many members routinely work significantly more hours than contracted, with employers retaining the discretion to remove additional hours. The Trades Union Congress echoed these concerns, with general secretary Paul Nowak warning that workers should not be left at the whim of employers who can cut shifts last minute.

Employer groups have warned that the 12-week reference period and shift-change rules could deter hiring, particularly for young people and in seasonal sectors. Kate Nicholls of UKHospitality called for a 26-week reference period to better reflect seasonal work patterns, while Helen Dickinson of the British Retail Consortium argued that classifying contracts of up to 20 hours as ‘low-hours’ is disproportionate. Both groups cautioned that over-regulation could reduce job opportunities, especially for young people already facing an employment squeeze.