Is this the end to zero hour contracts?

Short answer – No.

Long Answer – Somewhat

Following the recent uproar on the use of zero hour contracts, the Government implemented a public consultation on the matter. This consultation received over 36,000 responses, 83% which were in favour of a total ban.

You can see how passionate people are about this issue when you compare it to the consultation on the introduction of tribunal fees which got less than 150 responses, albeit I think the zero hours issue has received more air time in the press (prior to the change) which may account for the vast difference.

As a response to the consultation the Business Secretary Vince Cable has announced plans to ban exclusivity clauses within zero hours contracts. This would allow employees to work for more than one employer without being in breach of an obligation to only work for one.

Vince Cable commented:

“Zero hours contracts have a place in today’s labour market. They offer valuable flexible working opportunities for students, older people and other people looking to top up their income and find work that suits their personal circumstances.”

The ban will come into force with the introduction of the Small Business, Enterprise and Employment Bill.

There are approximately 125,000 people who are currently employed under zero hours contracts, following this crackdown on exclusivity clauses, these workers will be free to find different sources of work with different employees to suit their individual needs.

Of course there will always be some employers who will try and “get round” these changes and as a result the Government have announced plans to:

• Consult further on how to prevent rogue employers evading the exclusivity ban, e.g. through offering 1 hour fixed contracts;
• Work with business representatives and unions to develop a code of practice on the fair use of zero hours contracts by the end of the year; and
• Work with stakeholders to review existing guidance and improve information available to employees and employers on using these contracts.

For any advice on the use of zero hour contracts and the potential advantages and disadvantages of using these in your business, please call the employment law team on 0113 320 5000 for a free no obligation consultation.