The government’s consultation on reforms of zero hours and similar contracts has elicited some reaction from the recruitment and HR sector. The changes (https://www.gov.uk/government/consultations/make-work-pay-ending-one-sided-flexibility-reforms-of-zero-hours-and-similar-contracts) are part of its Make Work Pay plans but commentators are wary that addressing what might appear to be one-sided flexibility could do more harm than good.
“Well-managed zero-hours contracts provide welcome flexibility for employers and people who want to work but cannot commit to fixed hours – including students, carers and those managing health conditions,” comments Ben Willmott, head of public policy at the CIPD. “It’s really important that there’s meaningful consultation on these new rights, including the reference period which will be used to decide the number of guaranteed minimum hours a zero-hours contract worker will be entitled to. A longer reference period will be easier for employers to manage, but even with this, the new measures are likely to be extremely complex and challenging to comply with, particularly for small firms or those with fluctuations in demand.”
Willmott also suggests the challenge of providing reasonable advanced notice of shifts will also be difficult for employers and require caveats to allow for issues like sickness absence.
“If the final regulations are too difficult to manage, employers will simply find other ways to achieve workforce flexibility,” are says. “They are likely to rely more on self-employed contractors and fixed term contracts, for example, potentially resulting in more rather than less insecure employment.”
Willmott believes such changes will damage opportunities for young people who particularly benefit from zero-hours contract arrangements because they enable them to balance work while studying.
Elsewhere Crawford Temple, CEO of Professional Passport, says changes must strike the right balance. “While exploitation has no place in the modern workplace and workers should be protected from unfair practices, many people value the flexibility that these arrangements can provide,” he says. “A broad-brush approach risks creating unintended consequences for both workers and employers. Before taking action, we would encourage ministers to engage closely with industry experts and stakeholders across the supply chain who understand today’s diverse labour market.”
Finally Dave Chaplin, CEO of contracting authority ContractorCalculator said: “The challenge for policymakers is distinguishing between genuine abuse and legitimate flexible working models. A one-size-fits-all approach risks increasing compliance burdens, discouraging hiring, and pushing businesses towards alternative engagement models that may ultimately reduce opportunities for workers.
“The UK’s flexible workforce, including contractors, freelancers and self-employed professionals, plays a vital role in supporting innovation, productivity and economic growth,” Chaplin adds. “Many of these individuals have consciously chosen independence, accepting the trade-offs in exchange for greater control over their working lives. Policy should protect vulnerable workers without penalising those who actively choose flexibility. The goal must be a balanced framework that supports both security and independence, enabling businesses and workers alike to thrive in a modern labour market.”
