Ministers urged to press ahead with UK ban on zero-hours contracts

Campaigners are calling for ministers to proceed with a ban on zero-hours contracts despite business leaders warning that reduced flexibility will deter hiring and exclude young people from work. The Child Poverty Action Group and the TUC are among signatories to a letter urging the government to ignore business opposition. The Employment Rights Act received royal assent, but many provisions were left blank to allow phased implementation. A planned consultation on zero-hours contracts has been delayed, with submissions expected before summer ends and new rules planned for next year. Business groups argue delays will not allow workplace adjustments. A report from the Institute of Directors finds most business leaders expect negative effects on economic growth, and retailer leaders warn that guaranteeing hours could increase costs.

"Ministers should press ahead with a ban on zero-hours contracts, campaigners say, despite claims by business leaders that it would deter hiring and lock more young people out of the labour market. The Child Poverty Action Group and the union umbrella organisation the TUC were among eight signatories to a letter to the department of business and trade calling on the government to ignore the noise from businesses, which want zero-hours contracts to remain."

"Last year, the Employment Rights Act gained royal assent, but many of the detailed provisions were left blank, allowing ministers to phase in implementation over a period of years. Peter Kyle, the business secretary, has overseen a delay in the launch of a planned consultation on zero-hours contracts that was due to begin in January. It is understood the department will ask for submissions before the end of the summer, before implementing new rules next year."

"Business leaders are concerned that delays in the consultation process will not give them time to adjust their workplace practices, if new rules are agreed. In the absence of a formal consultation process, the British Retail Consortium and UKHospitality, the lobby group for restaurants and hotels, have written to Kyle saying reduced flexibility in work contracts will lead to fewer jobs."

"On Tuesday, Lord Wolfson, chair of the retailer Next, said that while he was in favour of eliminating zero-hours contracts in most sectors, the new rules would prove costly for retailers because the risk is you then have to contract for those hours for ever. More than a million people in the UK work to a zero-hours contract, from hospitality and warehouses to the NHS. Hundreds of thousands of them have worked for the same employer for years, the TUC says."

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