Now, the government often backtracks on promises it’s made, and it seems their pledge concerning zero-hour contracts has certainly been one example.
A post we wrote before they were re-elected, in June 2015, included their promise “to revamp zero-hour contracts, and focus on the abolition of the exclusivity clauses such contracts contain”.
It appears these words were in vain as, according to a new survey by the ONS, the number of people currently on zero-hour contracts has risen – from 697,000 to 801,000. Apparently, this represents 2.5% of the working population; and 38% of employees on these contracts are aged 16-24. Some employees even had more than one zero-hour contract with multiple employers.
The benefits of such a contractual arrangement are weighted heavily towards employers. Research by Glassdoor found that a good number of zero-hour contracts were offered to employees on top of those stated in the ONS figures - but these were subsequently rejected. The reasons given by candidates involved, understandably, a need for more stable working hours and regular income. A ‘lack of trust’ was also cited, with candidates interpreting the offer of a zero-hour contract as less of a commitment from the employer, and therefore, a lack of investment towards their training and development; 45% even went as far as calling the contracts ‘exploitative’.
According to the ONS, “People on zero-hour contracts are more likely to be young, part time, women, or in full-time education, when compared with other people in employment. On average, someone on a zero-hour contract usually works 26 hours a week. Around 1 in 3 people (37%) on a zero-hour contract want more hours, with most wanting them in their current job, as opposed to a different job which offers more hours.” In comparison, only 10% of people not on zero-hour contracts wanted more hours.
Though fluctuations in the ONS’ figures may be influenced by the industry within which the contracts are given, one sector criticised for its reliance on them is retail. However, the report showed that fewer retailers used zero-hour contracts in November 2015 than in May of the same year. This may sound a step in the right direction, but the ONS pointed out that seasonal issues could have made the difference.
Unions have been quick to point out the dangers of zero-hour contracts. TUC General Secretary, Frances O’Grady, said, “Many people on zero-hours contracts are unable to plan for their future and regularly struggle with paying bills and having a decent family life. The so-called ‘flexibility’ these contracts offer is far too one-sided. Staff without guaranteed pay have much less power to stand up for their rights and often feel afraid to turn down shifts in case they fall out of favour with their boss.”
Perhaps when the recession was at its shakiest there was justification for this type of contract. Now that growth in our economy is supposedly ongoing, is it fair to still expect employees to take all the risk?
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