By Pravin Jeyaraj and James Johnson-Flint Zero Hours Justice welcomes the Government's plan to pay 80% of the salary of retained non-working employees of UK businesses suffering as a result of the coronavirus pandemic, up to £2500. But we are extremely concerned about the holes in this package of help and lack of clarity, especially for the most vulnerable on zero hours contracts. Two days after the announcement, it is still unclear how zero hours workers will be covered. Those sectors, such as food and hospitality, that have been hardest hit - with sales now at zero many have already taken action to lay such workers off. According to the latest employment figures, the food and hospitality sector has the biggest proportion of its workers who are on zero hours contracts. On Friday 20th March, Rishi Sunak, the Chancellor of the Exchequer, announced the setting up of the Coronovirus Jobs Retention Scheme (CJRS), which will provide a grant to any employer "to cover most of the wages of people who are not working but are furloughed and kept on payroll, rather than being laid off." In other words, anyone who is asked to stop working - but is not laid off or made redundant - because of the coronavirus pandemic - will still be paid 80% of their salary up to £2500, with employers having the option to top up the remaining 20%. There was however no specific mention in the Chancellor's speech of how this affects the around one million workers on zero hours contracts. However, in media questions that followed, he did say that zero hours contract workers will be protected too, as long as they are paid via PAYE, although how calculation is precisely made is not clear, albeit there was suggestion that if regular hours had been worked previously those would be applied. We are concerned that where workers have irregular hours, because of the very nature of the precarious employment so many are forced to accept, this may affect what they receive adversely, if they are lucky to be retained. Where an employer chooses not apply to the Coronavirus Job Retention Scheme, zero hours contract workers can apply for Universal Credit. The Universal Credit standard allowance is being increased by £1,000 a year, for the next 12 months. In addition, £1bn is being added to the Universal Credit budget, so that the Local Housing Allowance will cover at least 30% of market rents in the area. Improvements on where we were last week, yes, but still a stressful and financially precarious position so many will be in. Is this enough?? We fear not and the days ahead will show just how much hardship those on zero hours contracts are likely to have to endure, due to no fault of their own. Press Release: Zero Hours Justice reaction to Russell Group’s announcement on Zero Hours Contracts5/3/2020
The Russell Group, representing 24 leading universities, has just announced that they will be examining how certain short-term contracts are used. Zero Hours Justice welcomes aspects of the Russell Group’s announcement, which includes the statement that: “An area we are all concerned about is how some short-term contracts are used. On the one hand there will always be a need for flexibility: institutions need this, some staff prefer this and it can also create real opportunities. However, we recognise that over-reliance on some forms of employment models and associated contractual arrangements may not serve the best interests of staff, for example in supporting their development and career aspirations. Ultimately, they may also impact on the wider academic mission and the staff and student experience at university. We believe there is now an urgent need and an opportunity to address these challenges. Working collectively and individually across the Russell Group, we have all committed to collaborate on this to make real progress. We have started by establishing a small working group of senior leaders that will gather and analyse examples of best practice and ensure this is shared across all our universities." Responding to the announcement, James Johnson-Flint, Director of Zero Hours Justice said: “We are encouraged by The Russell Group’s announcement that they are at last looking to put an end to their sometime inappropriate use of zero hours contracts. Importantly, and not covered in the announcement, this needs to include those employed indirectly via outsourcing contractors or agencies, who provide significant numbers of cleaners, caterers, security and other essential workers to these establishments. Large numbers of these workers have for years worked hand to mouth under zero hours contracts and received no more than the minimum wage with no guarantee from day to day that they will be given enough hours to feed their kids or pay their rent.” “It has been recognised for some years that the UK’s leading universities are some of the worst offenders in higher education with regard to the employment of academics and other workers on insecure zero hours or minimal hours contracts. To get admission that inappropriate use of these contracts may not serve the best interests of staff and may compromise student experience is a major step forward.” For more information on our work, see zerohoursjustice.org The full Russell Group announcement can be read at https://russellgroup.ac.uk/news/russell-group-publishes-joint-statement-on-working-practices/ Ends Notes to editors:
Zero Hours Justice is a campaign led by a coalition of concerned citizens working together, with representatives from the TUC and responsible employers, with the aim of ending zero hours contracts when imposed unilaterally against a worker’s will. The aims of Zero Hours Justice are
Zero House Justice Press contact: Pravin Jeyaraj [email protected] Download assets / logos at this link: https://www.dropbox.com/sh/yzdfoqgfw5ob9qi/AABCNF9IzEOceoi-be4lW5MOa?dl=0 |
contactFor press enquiries or permission to reuse content, please contact: Archives
August 2024
CATEGORIES
All
|