Crackdown on zero-hours contracts in review for Theresa May is virtually worthless, say trade unions

Sports Direct is among big firms criticised for putting staff on zero-hours contracts: PA
Sports Direct is among big firms criticised for putting staff on zero-hours contracts: PA

A proposed crackdown on zero-hours contracts in a review carried out for Theresa May is virtually worthless, union leaders have protested.

Staff are expected to be offered a “right to request” a move onto fixed hours, in a study for the Prime Minister by Matthew Taylor, a former adviser to Tony Blair.

The review is crucial for Ms May’s claims to be determined to tackle exploitation in the so-called “gig” economy, part of her strategy to target Labour-leaning voters.

But the Trades Union Congress said a mere “right to request” could be easily ignored by abusive bosses – and accused the Prime Minister of failing to be upfront about her plans.

“This could mean close to zero action on zero-hours contracts,” said Frances O’Grady, the TUC’s general secretary.

“A right to request guaranteed hours from an exploitative boss is no right at all for many workers.

“To make a real change, we should turn this policy on its head. Everyone should be entitled to guaranteed hours, with a genuine choice for workers to opt-out, free from pressure from their boss.”

Ms O’Grady said people on zero-hours contracts would fear being victimized – and being denied future work – if they requested to move to fixed hours.

It was also unclear whether employees would have to have been working for six-months to qualify – the requirement to request flexible working, after having a child for example.

Around 900,000 people are on zero-hours contracts – up from 143,000 in 2008 – which have been criticised for leaving many in insecure work, depressing wages and denying full employee rights.

The BBC reported that Mr Taylor, the head of the Royal Society of Arts, is poised to recommend the “right to request”, in a review to be delivered in the summer.

Employers would have to respond “seriously” to the request and give reasons for their decision.

Mr Taylor said to be impressed by the example of McDonald's, after it offered all its staff on zero-hours contracts the chance to move onto fixed hours.

But McDonald's chief executive, Paul Pomroy, said only about 20 per cent of those employees had asked for a move, with the remaining 80 per cent satisfied with no guaranteed hours.

Significantly, the Confederation of British Industry backs the idea, arguing all employees should have their terms and conditions set out in a written statement.

The recruitment of the former head of Mr Blair’s policy unit was seen as a major coup for Ms May, underlining her commitment to help staff stuck in insecure and stressful work.

But the Conservative manifesto offers few clues as to what will follow, saying only: “A new Conservative government will act to ensure that the interests of employees on traditional contracts, the self-employed and those people working in the ‘gig’ economy are all properly protected.”

It notes that they currently have “fewer pension entitlements, reduced access to benefits, and no qualification for sick pay and holiday pay”.

Labour has said it would ban zero-hours contracts, but the Liberal Democrats also back a “right to request” to change employment status.