The number of workers on zero-hours contracts has reached an unprecedented high, sparking debates about labor rights and job security. This trend comes just before the Labour government's planned crackdown on such contracts from next year. But here's where it gets controversial: while some argue these contracts offer flexibility, critics claim they leave workers vulnerable to unpredictable schedules and income. And this is the part most people miss: despite the government's efforts, the Work Foundation at Lancaster University reports that the proportion of zero-hours contractors reliant on them for full-time work has hit a record 32.8%.
Zero-hours contracts, which allow employers to hire staff with no guarantee of work, have seen a surge in popularity, particularly among 16-to-24-year-olds and workers not in full-time education. This has led to a 91,000 increase in the number of people employed on these contracts over the past year. The Department for Business and Trade (DBT) has pledged to ensure job security by giving eligible workers the right to guaranteed hours, but the measures are still subject to consultation and secondary legislation in the Commons.
The Labour government's 2024 election manifesto promised a ban on 'exploitative' zero-hours contracts as one of its first policies. This is part of the Employment Rights Act, which is expected to come into force next year, granting workers the right to guaranteed hours and 'reasonable notice' of their schedules. However, critics argue that these contracts leave workers facing unpredictable schedules, no guaranteed income, and an inability to plan ahead financially. Proponents, on the other hand, argue that these contracts help support young people into their first jobs and offer flexibility around education or childcare.
The Work Foundation's analysis highlights the 'urgent need' for the government and MPs to finalize the measures as soon as possible. Despite Labour's plans, employers are still relying on these 'highly precarious' contracts, leaving over a million workers unsure of their hours or earnings. The figures show an additional 181,000 people on zero-hours contracts since Labour came to power in 2024, with young workers five times more likely to be on these contracts. Women make up more than half (54%) of workers on these contracts.
The impact of zero-hours contracts is evident in the stories of workers like Anna Jameson, a 22-year-old retail worker from Maltby, South Yorkshire. She describes the constant fluctuations in hours and wages, and the uncertainty of her pay at the end of the month. As a single parent, she struggles with the unpredictability of her wages, which makes it difficult to create security for her family. The Trade Unions Congress (TUC) has called for the measures in the Employment Rights Act to be implemented in full as soon as possible, emphasizing the need for job security and control over hours and pay.
