Zero hours contracts essential for flexibility, trade associations say

RA Now

The flexibility that can be offered by zero hours contracts must benefit employers and employees equally, respondents to the government’s consultation on zero hours contracts have said.

Exclusivity clauses in zero hours contracts should be banned where there is no compelling business reason for their use, for example where an employee working for a competitor may result in the loss of commercially sensitive information, according to the Chartered Institute of Personnel & Development.

Contract workers should also have the right to request a minimum number of hours per week after they have been working for an organisation for at least one year, the CIPD added.

The Confederation of British Industry added it wanted to encourage the flexibility that benefits employers and employees and ensure the focus is on tackling bad practice rather than demonizing zero hours and other flexible contracts.

Zero hours contracts offer a choice to those who want flexibility in the hours they work – such as students, parents and carers – and provide a stepping-stone into the jobs market for those most vulnerable to long-term unemployment, the CBI stated.

“The flexible labour market in this country has saved and created jobs, and kept our economy going during the tough times,” said Neil Carberry, director of employment and skills at the CBI. “Zero hours contracts have played a vital part in this, and it’s important we protect the flexibility that can benefit both employers and employees.”

Ben Willmott, head of public policy at the CIPD, added: “Our research reveals that zero hours contracts can work well for both employers and individuals on these types of working arrangements, providing valuable workplace and labour market flexibility. However, our research also flagged that bad practice does exist.

“The nature of zero hours employment means that some people on these arrangements might have more than one job and so it is unfair for employers to require that zero hours staff can’t work for other organisations when they cannot provide work, except in very specific circumstances.”

The CIPD is also calling for an amendment to the Employment Rights Act to require that workers and not just employees have the right to receive a written copy of their terms and conditions not later than two months in employment. This would help provide greater clarity on behalf of both parties on the issue of employment status and the associated employment rights, it added.

The government is currently analysing all feedback to the consultation.