Latest news with #zeroHoursContracts
The Independent
3 days ago
- Business
- The Independent
Zero-hours contacts will be illegal in two years
The government's landmark Employment Rights Bill, described by Prime Minister Sir Keir Starmer as a significant upgrade to workers' rights, will be implemented through a phased rollout extending until 2027. Key provisions, such as a ban on exploitative zero-hours contracts and 'day-one' protections against unfair dismissal, are scheduled to come into full effect in 2027. Immediate changes upon the Bill's royal assent include the repeal of Conservative-era industrial action restrictions and new protections for striking workers. Further reforms, including enhanced sick pay, 'day-one' paternity leave, and measures to end 'fire and rehire' practices, are slated for April and October 2026. The phased approach aims to give businesses ample time to prepare, a move welcomed by business groups, while union leaders urge earlier adoption of the changes and the Conservative opposition criticises the delay.
The Independent
3 days ago
- Business
- The Independent
Ban on ‘exploitative' zero-hours contracts to come into effect in 2027
A ban on 'exploitative' zero-hours contracts and 'day-one' protections against unfair dismissal will not come into force until 2027 as the Government seeks to give businesses time to prepare for its workers' rights reforms. Ministers have opted for a 'phased' rollout of the changes, which were a Labour manifesto promise, in order to balance safeguards for employees with 'the practical realities' of running a company. Prime Minister Sir Keir Starmer has hailed the Government's flagship Employment Rights Bill, which is making its way through Parliament, as 'the single biggest upgrade to workers' rights in a generation'. Its measures include bolstered rights to parental leave, a crackdown on 'fire and rehire' practices and the removal of the lower earnings limit and waiting period for statutory sick pay. Under plans outlined in a 'roadmap' published by the Government on Tuesday, some changes will be implemented immediately after the Bill receives royal assent but others will take two years to come into effect. After the legislation has passed, Conservative-era rules restricting industrial action in sectors including health and education will be abolished as the Strikes (Minimum Service Levels) Act 2023 will be instantly appealed. New protections against dismissal for striking workers will also come into effect after the Bill makes it onto the statute books. Changes to sick pay, protections for whistleblowers, 'day-one' paternity leave and unpaid parental leave and reforms to strengthen financial security for staff facing mass redundancies will take effect in April 2026. In October 2026, measures to end 'unscrupulous' fire and rehire practices, tightened tipping laws aimed at ensuring workers take home a fair proportion of gratuity will be implemented, the Government said. Measures to strengthen right of access for trade unions and protect employees from harassment are now also due to come into effect next October under the roadmap. Finally in 2027, the Government says it will have implemented: – Full gender pay gap and menopause action plans, which aim to support women in the workplace and will be introduced on a voluntary basis from next April – Bereavement leave – A ban on the 'exploitative' use of zero-hours contracts – 'Day-one' rights to protection against unfair dismissal – Improved access to flexible working, for example by allowing people to work from home – Strengthened protections against dismissal for pregnant women and new mothers. Deputy Prime Minister Angela Rayner said the Government was 'working fast' to deliver the reforms, with some due to kick in 'within months'. Business Secretary Jonathan Reynolds said: 'By phasing implementation, our collaborative approach balances meaningful worker protections with the practical realities of running a successful business, creating more productive workplaces where both employees and employers can thrive.' The Department for Business and Trade said that providing a 'structured timeline' would allow stakeholders to plan their time and resources to ensure they are ready for the changes. The Government will continue to consult with 'business groups, employers, workers and trade unions' in phases on the detail of the measures, beginning this summer and continuing into the new year, it said. Hospitality and recruitment bodies welcomed the time to prepare, while union leaders urged employers 'not to wait' for the law change before implementing the reforms. TUC general secretary Paul Nowak said: 'It's welcome that workers will start to benefit from these long overdue changes from later this year – but this timetable must be a backstop. 'We need to see these new rights in action as soon as possible. Decent employers don't need to wait for the law to change. 'They should be working with staff and unions right now to introduce these changes as quickly as possible.' GMB general secretary Gary Smith said: 'GMB members now know when these much-needed improvements will happen – we urge good employers not to wait; do the right thing and make these changes a reality today.' Kate Nicholls, chief executive of UKHospitality, said: 'Clear and precise timelines on when aspects of this legislation, and the processes to deliver them, will come into force is essential, and it was important that the Government embark on providing clarity. 'There are substantial changes for businesses in the Employment Rights Bill and it's right that the Government is using the appropriate implementation periods for the most complex issues for hospitality, in order to get the details right for both businesses and workers.' Neil Carberry, Recruitment and Employment Confederation (REC) chief executive, said: 'This clear timeline on the Employment Rights Bill gives room for full and frank consultation on how the new rules will be structured. It also gives businesses important time to plan. 'Now we have the roadmap, ongoing and meaningful engagement will be critical to ensuring new regulations allow the flexibility workers and companies value to remain.'
The Independent
13-05-2025
- Business
- The Independent
More than 1m people still on zero-hours contracts despite Labour pledge to crack down on ‘exploitative' practice
More than one million people in the UK are on zero-hours contracts, new data has revealed, despite Labour 's pledge to eliminate the 'exploitative' contracts last year. Some 1.17 million people were on zero-hours contracts in January to March of this year meaning that they are not guaranteed any minimum working hours by their employer. The only other period on record when more people in the UK were on zero-hours contracts was between April to June of 2023, when 1.2 million workers were in such roles. Labour ushered in a plan to offer guaranteed working hours as part of its Employment Rights Bill, which is currently being scrutinised in the House of Lords. As a result, experts expected that bosses would shy away from zero-hours contracts; but in fact, the opposite has happened, with a 12.5 per cent increase in the past year. 'The [Employment Rights] law is likely to be passed later this year, and we had expected to see the start of a long-term decline of zero-hour contracts in the UK,' said Rebecca Florisson, analyst at the Work Foundation. 'But this marked increase may signal some employers are resistant to dropping zero-hour contracts ahead of new legislation being introduced.' The figures are a concern in the midst of the UK seeing 106,000 fewer employees on the payroll from the previous year, according to new ONS statistics. Around 130,000 more people are employed via zero-hours contracts than the first quarter of 2025, rising from 1 million to 1.17 million in just a year. This makes up 3.4 per cent of the total UK workforce, according to the latest Labour Force Survey. 'Many workers are currently trapped in these unstable jobs as they have limited choices to find other forms of employment, and often have to trade security for much-needed flexibility to manage their health or their childcaring responsibilities,' explained Ms Florisson. One in four (25 per cent) of these workers – 291,000 people – are working fewer hours than they'd like, the data shows, and are either seeking more hours, an additional job, or a new job with longer hours. Some people are drawn to zero-hours contracts due to their temporary nature, but the majority (67 per cent) of people on these contracts have been with their employer for over a year; and some for ten years or more. Women are more likely to be employed in this way than men, but concerningly make up 81 per cent of the growth in zero-hours contracts in the past year. 'The growth in zero-hour contracts is likely to impact groups facing structural inequalities in the labour market,' warns Ms Florisson. 'Zero-hour contract work is often concentrated in lower paid sectors like retail and hospitality, and our previous research has shown that women, young and older workers are more likely to be in routine and semi-routine jobs in these sectors.' Young people aged 24 and under are most likely to work on zero-hours contracts, and also more likely to be in education while working. But hundreds of thousands of people in older age groups also work on 'unstable' contracts, including 221,000 people aged 50 and above. Research from the Work Foundation at Lancaster University also suggests that three in four people working zero-hours contracts are in 'severely insecure' work. 'This means they face a worrying mix of financial and contractual insecurity, which also limits their rights and protections,' says Ms Florisson. The East Midlands sees the highest proportion of workers on zero-hours contracts, at 4.7 per cent of all people in employment; a jump from 3.7 per cent the previous quarter. When will the Employment Rights Bill come into force? A package of labour reforms were introduced in the Employment Rights Bill last year. As part of the Bill, zero-hour contracts without the offer of work will be banned, and guaranteed hours will be set by the number worked in a twelve week period. The Bill passed in its third reading by a majority of 233 votes, and is undergoing scrutiny in the House of Lords. A timeline for implementation is not yet set, but the majority of reforms are not expected to take effect until at least late 2026. 'Employers report that their labour costs are increasing due to the rise in the National Living Wage and the National Minimum Wage and the increase in employer National Insurance Contributions,' said Ms Florisson. 'In that context, it is possible that employers will continue using zero-hour contracts for as long as they can as a way to balance out resourcing demands and increasing costs.'
