Unions say Tories' zero-hours workers' review doesn't go far enough

Unions have expressed anger at the proposal that workers on zero-hours contracts should be the given the right to request guaranteed hours, saying it does not go far enough.

A government-commissioned review into employment practices is expected to make the recommendation next month. Matthew Taylor, the chief executive of the Royal Society of Arts, who is leading the review into insecure work and the gig economy, will argue that new rules are needed to ensure businesses are not exploiting workers.

A right to ask for fixed hours would mirror the legal right to request flexible working, which was introduced in 2014. All employees, not just parents and carers, can request flexible hours and working from home. Companies can refuse these requests, but have to give good business reasons for doing so.

Unions said the proposed measures would be weak and would do little to tackle the big increase in the number of workers on zero-hours contracts.

The TUC general secretary, Frances O’Grady, said: “This could mean close to zero action on zero-hours contracts. 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. Anyone asked to work outside their contracted hours should be paid extra on top of their usual wage.”

Tim Roache, the general secretary of the GMB union, said: “That’s going to make absolutely no difference to people’s lives. It’s tantamount to ‘please sir, can I have some more?’

“The very nature of a zero-hours contract means that any employee making noises about rights, proper hours or how they’re treated will simply find they don’t get any hours next week.”

The idea of a right to ask for fixed hours is backed by the Confederation of British Industry, which represents employers. In a submission to the Taylor review (pdf), it said flexible working arrangements should benefit both parties.

“There is a mechanism for the individual to initiate this discussion where they want more flexibility, but not where they want less,” the CBI said. “A right to request fixed or more fixed hours should be introduced on the same basis as the right to request flexible working, as a more effective tool to address these issues, without undermining workers’ options or the enforcement of the minimum wage.”

The CBI said all employees should receive a written statement that sets out the key terms of their employment and their rights.

More than 900,000 people are on zero-hours contracts, which do not offer guaranteed hours or sick pay, with many juggling several jobs, according to the Office for National Statistics. It recorded 1.7m zero-hours contracts, representing 6% of all employment contracts, across 905,000 workers at the end of last year.

Zero-hours contracts are common among big retailers such as Sports Direct, restaurants such as McDonald’s, and among leisure companies and hotels.

Last month McDonald’s started offering staff on zero-hours contracts the chance to switch to fixed contracts with minimum guaranteed hours.

During a trial in 23 restaurants, one-fifth of employees on zero-hours deals asked for a move, while the rest preferred to stay on flexible contracts. The offer is being rolled out nationally this year to existing employees and new joiners.

The McDonald’s UK chief executive, Paul Pomroy, said: “The vast majority of our employees are happy with their flexible contracts, but some have told us that more fixed hours would help them get better access to some financial products [such as mobile phone contracts and mortgages].”

Conor D’Arcy, a policy analyst at the Resolution Foundation thinktank, said: “Introducing new rights to guaranteed hours for workers on zero-hours contracts would be a bold and welcome move – addressing people’s concerns about job insecurity, while maintaining the flexibility of zero-hours contracts for workers that still want them.

“Big questions remain over how strong the right will be – employers can refuse requests all too easily – and how long it will take for people to qualify for these new rights. But it’s welcome to see support for more action to boost job security from a wide range of sources, including business groups.”

The Low Incomes Tax Reform Group charity has urged Taylor to recommend a comprehensive reassessment of the relationship between taxation and the growth of the gig economy.

Anne Fairpo, chair of LITRG, said: “Exploitation of workers often manifests itself in problems with their tax and national insurance contributions, such as employers not paying over withheld amounts of Pay As You Earn to HMRC. Even where there is no legal wrongdoing as such, minimising tax or trying to avoid HMRC administration is often a factor in terms of employers offering non-standard forms of work, for example, zero-hours contracts or temporary positions over full-time, permanent, direct employment.”