Cable launches review into zero-hours contracts

Jo Faragher

Business secretary Vince Cable is to launch a review into zero-hours contracts after increasing speculation that they are being misused by employers.

These casual contracts – where workers are only paid for hours worked – have increased in recent months as employers choose to make the most of the flexibility they offer. Research by the Financial Times found that there had been a 24% rise in the number of zero hours contracts used in NHS hospitals in the past two years, for example.

Cable said: “For some these can be the right sort of employment contract, giving workers a choice of working patterns. However, for a contract that is now more widely used, we know relatively little about its effect on employers and employees,” he said.

“There has been anecdotal evidence of abuse by certain employers, including in the public sector, of some vulnerable workers at the margins of the labour market,” he added.

The Trades Union Congress (TUC) pointed out that some employers know they can advertise roles on these contracts because – in the current climate – there are so many candidates for so few roles.

Frances O’Grady, the TUC’s general secretary, said: “With the tough times set to continue, now is the perfect time for the government to be reviewing – and hopefully regulating – the increasing use of these exploitative contracts.”

Representing professional contractors, recruitment industry body APSCo welcomed the review. Samantha Hurley, head of external relations, said: “Vince Cable is right to look into zero-hours contracts and we look forward to seeing his conclusions.”

“APSCo particularly welcomes the Government’s ambition to better understand the nature of demand in the flexible labour market. We have long called for more work in this area and we expect the output will be a valuable asset for policy making on employment.”

Adrian Marlowe, Chairman of the Association of Recruitment Consultancies,felt a review would help agencies better understand these contracts: “Agencies are tightly regulated and there are existing laws that cover most potential areas of abuse of workers. Also employees have considerable statutory protections under the Working Time Regulations and National Minimum Wage legislation.”

“However, it will be interesting to know whether current laws are being adhered to and enforced and to understand the types of circumstances in which abuses are arising. The ARC and its’ members look forward to the outcome of this review.”