One million on zero-hours contracts, finds CIPD

Jo Faragher

A CIPD report has found that zero-hours contracts – where staff are kept on stand-by with no guarantee of work – are far more widespread than initially thought.

The CIPD’s research suggests that there could be around a million zero-hours workers in the UK, far more than recent figures from the Office for National Statistics show, estimating the figure at around 250,000 people, or less than 1% of those in employment.

Earlier this month, Buckingham Palace made headlines when it was found to employ hundreds of staff on the contracts.

A fifth of employers in the CIPD survey said that they employed at least one person on a zero-hours contract, with employers in the voluntary sector and the public sector the most likely to employ staff under these arrangements.

Just under two-fifths (38%) of zero-hours staff said they worked more than 30 hours per week and considered themselves as employed full time. Worryingly, 14% said their employer often failed to provide sufficient hours for them to enjoy a basic standard of living.

The Government has pledged to review the use of zero-hours contracts, and unions have denounced them as exploitative.

CIPD CEO Peter Cheese said:  “Zero hours contracts are a hot topic and our research suggests they are being used more commonly than the ONS figures would imply. However, the assumption that all zero hours contracts are ‘bad’ and the suggestion from some quarters that they should be banned should be questioned.” 

Cheese has called for a closer look at the various forms these contracts take, and clearer guidance on best practice.

Kevin Green, chief executive of the REC, said a ban on zero-hours would be “ridiculous”, making as much sense as asking for a ban on part-time contracts. 

Adrian Marlowe, chairman of the Association of Recruitment Consultancies (ARC) added: “Contrary to some recent reports, workers on zero hour contracts do benefit from statutory holiday pay, sick pay, redundancy pay and other employment rights. Recruitment agencies have successfully operated zero-hour contracts for decades without problems.”