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As outlined in their ‘Make Work Pay’ plan, The Labour Party aims to provide greater predictability and security for employees. Central to this is the commitment to ban ‘exploitative’ zero-hours contracts and introduce measures to ensure employees have the right to a contract reflecting their regular work hours. This addresses the uncertainty and financial instability that many workers face under the current system.
Ban on 'Exploitative' Zero-Hours Contracts
The goal is to eliminate such contracts' uncertainty and lack of stability, often placing employees and their families at risk of poverty and hardship. Under the proposals, employees would have the right to a contract that reflects the number of hours they regularly work, based on a 12-week reference period. This change is designed to ensure that workers who consistently work certain hours are no longer left without guaranteed income or work schedule predictability.
This policy responds to longstanding criticisms that zero-hours contracts favour employers by providing maximum flexibility at the expense of employee security. By banning these contracts, Labour aims to create a more equitable labour market where workers can confidently plan their lives and finances. The Low Pay Commission supports the move.
Right to an Average-Hours Contract
Labour's proposed legislation would introduce a right for employees to receive an average-hours contract to enhance job security further. This contract would reflect the hours they have regularly worked over 12 weeks. This measure is intended to ensure that employees are not left in limbo, uncertain about their income or working hours from week to week.
Labour's approach recognises that while flexibility in work schedules can be beneficial, it should not be one-sided. Workers should not bear the burden of unpredictable and unstable working conditions. By ensuring that contracts reflect actual hours worked, the proposal aims to provide workers with a fairer and more predictable income.
Reasonable Notice of Work Schedules and Compensation for Cancelled Shifts
In addition to the changes to zero-hours contracts, Labour plans to introduce laws requiring employers to give reasonable notice of work schedules. This means that workers will have advance notice of their shifts, allowing them to plan their personal and professional lives better. Furthermore, if a shift is cancelled at short notice, employees would be entitled to compensation proportionate to the notice given.
This proposal addresses a common issue faced by many workers under zero-hours contracts, where shifts can be cancelled at the last minute, leaving workers without income and unable to plan effectively. By ensuring reasonable notice and compensation for cancelled shifts, Labour aims to protect workers from the financial and personal disruptions caused by sudden changes in work schedules​.
Impact on Employees
These changes promise greater stability and predictability in employees’ work lives. Workers will have the assurance of a minimum number of hours and will be better able to manage their finances and personal commitments. This is particularly important in sectors with prevalent zero-hours contracts, and workers often face significant uncertainty.
Conclusion
Labour's proposed changes to zero-hours contracts and work schedule predictability represent a significant step towards creating a fairer and more stable labour market. By banning exploitative contracts and ensuring reasonable notice of work schedules, the ‘Make Work Pay’ proposals aim to provide greater security and fairness for employees across the UK. While these changes are subject to legislative processes, they indicate a strong commitment to enhancing workers' rights and ensuring a more predictable and secure working environment.​
