According to the Office for National Statistics (ONS) the number of people on zero-hour contracts in the UK rose in 2017 by 100,000. In November 2017 there were 1.8 million contracts that did not guarantee a minimum number of hours, compared to 1.7 million in November 2016.
However, overall as a share of all contracts the proportion of zero-hours was unchanged at 6%. The ONS have warned that comparison should be treated with caution as the survey changed from being voluntary to compulsory between these two periods. They also pointed that increased awareness of zero-hours contracts could have played a part in the rise as more workers recognise that they are employed in this way.
Criticisms
Whilst unions have strongly criticised the government for failing to help people in precarious jobs, with employers able to cancel shifts at very short notice, leaving workers struggling to make ends meet, which also leads to job insecurity and lower pay. High profile scandals from companies such as Sports Direct have also played a part in raising awareness and the issues that can arise from zero-hours contracts.
Flexibility and freedom
Others have argued that these contracts can offer people flexibility and increased choice. For example, those in part-time work or students wanting to gain experience in new fields and can't or don't want to commit to regular contracted hours. Flexible contracts also allow employers to respond quickly to fluctuations in the economy.
Economists believe the use of zero-hours contracts is beginning to plateau with the low levels of unemployment. However, there are still many people on these contracts, those likely to be are young people, women, students and those in part-time employment.
Stable contract requests
The Chartered Institute for Personnel Development (CIPD) responded to the Government’s consultation on the Taylor Review of Modern Working Practices, finding that of the 1,000 employers they surveyed: 67% supported the right of a worker to request a stable contract. This means that an agency worker could request a permanent contract and someone on a zero-hours contract could request guaranteed hours.
They found more clarification is needed from the government to help both employers and employees better understand the existing law, including the rights and obligations attached to whether someone is an employee, worker or self-employed. This will allow employers and individuals to better understand whether a flexible employment arrangements is the best arrangement for both parties.
Flexible working and zero-hours contracts can work when used responsibly and when people are managed well with clear communication between the worker and employer. Employers using zero-hours contracts should ensure that they have a written policy or procedure for what happens when work is cancelled at short notice.