Commenting on this morning’s announcement about zero hours contracts, the ALMR has welcomed the Government’s confirmation of light touch regulation and the retention of flexibility for business.
Employment Minister Jenny Willott has this morning (25 June 2014) laid before Parliament a statement setting out the Government’s intention to reform zero-hours contracts to prevent abuses of the flexible working arrangements.
Exclusivity clauses to be banned
The Government will use the Small Business, Enterprise and Employment Bill to ban the use of exclusivity clauses in contracts which do not guarantee any hours and introduce an ‘anti-avoidance’ provision to ensure that this ban is enforceable. It will also consult with employers, employees and other stakeholders to develop a Code of Practice and review existing guidance.
Reacting to the announcement, ALMR Strategic Affairs Director Kate Nicholls said: “Mr Cable has listened to our concerns and heeded our call for balanced and proportionate action to tackle abuses of these arrangements. For many working in licensed retail, temporary and casual contracts offer a flexible method of working, particularly for those combining work with study.”
Flexibility to invest in staff and drive growth
Zero-hours contracts are widely used and are particularly prevalent in industries which experience unpredictable fluctuations in demand. It has been estimated that 36% of hospitality firms use the contracts.
Nicholls continued: “It is crucial that pubs, clubs and restaurants retain the flexibility to invest in their staff and drive growth. We are glad that the Government has decided against imposing costly bureaucracy and regulation which would have stifled our sector’s fantastic track record of job creation.”