Some people believe that zero-hours contracts offer flexible working hours. They think that they enable them to choose the hours that suit them.
Unfortunately, many people find that this is not the reality and they are used to control workers with threats of losing hours if they say anything that contradicts the employer or raises issues around safety or even sexual harassment. Usually, the only flexibility is for the employer rather than the worker. However, there are even more unfair reasons underneath than the headlines around the so-called possible flexibility benefit issue around a zero-hours contract. When you look at the impact it has on your life, both short and long term it doesn't just impact your ability to build a secure long term future as banks and landlords are not likely to entertain you with a mortgage or rent a property due to your insecure employment and typically low pay that goes alongside it, but also the fact that if the employer you work for goes bust, they don’t have to pay your notice or redundancy and neither does the government. When you come to retire, you find that you are not entitled to your full state pension as you fell below the minimum income threshold, which means that your poverty continues even into your retirement. What's also clear is that employers like to keep zero-hour contracts because it’s good for their own wealth. In fact, the IOD, the Institute of Directors, and the CBI have been putting pressure on the Labour Party to reverse its decision to ban outright zero-hour contracts and water it down to talk about the mythical type of exploitative forms of zero-hour contracts if your boss want accept you as a worker and provides no rights they are all exploitative. Great for bad bosses, bad for workers and bad for the UK. When you look at Britain's GDP over the decades, and you look at how employment practices have changed with changes to legislation which have reduced working people's rights in the workplace, you recognise that not only has this destabilised working people's security, but it's undermined Britain's opportunity to grow its economy. Growing our economy is something politicians constantly talk about but continue to refuse to actually tackle. And the most significant contributor, job insecurity, with all the data showing undervalued workers are not as productive as workers in other countries that don’t operate a race to the bottom. Britain's GDP is at its lowest ever and shows no sign of improving to the levels of the so called bad old days of the 70s when it was growing at up to 6.5% now we are lucky if it reaches 1.5% and this should be laid at the door of the government and of business. This business model of insecure employment may have created opportunities for vast wealth for individuals at the top of the food chain, but it's done absolutely nothing for the country's economy or its people. As a country, we need to recognise that when we talk about levelling up, that means that people have secure employment, housing security, and an income that enables them to afford not just the basics of life but the ability to enjoy life which in my opinion are essential. It’s why during this election, ending zero-hours contracts has to be firmly on the agenda. We must refrain from allowing the next government to push this idea of allowing any form of exploitation of workers to continue, if a new deal is to have any real meaning we must ensure that we have rights in the workplace. We cannot accept any less for a country that is supposed to be about its people and we must put their needs first. The government of whichever colour gets elected must demonstrate that by ensuring an end to the exploitative nature of employment, and that means banning zero-hours contracts outright. The government has announced its intention to further reform the laws surrounding zero hours contracts, offering more stability to zero hours workers in the UK with the creation of the new right to request a predictable working pattern under the Workers (Predictable Terms and Conditions) Act 2023.
At present, there is no right for zero hours workers to any predictability in their working schedule, with the balance of power being very much in an employer’s favour. The new legislation seeks to combat the exploitative nature of zero hours contracts and marks a significant new step in offering stability for the UK workforce, seeking to eradicate the "one-sided flexibility” that the government identified back in 2018 as part of its review of modern workplaces. The new right to request a predictable working pattern is a milestone in the fight for workers’ rights, allowing them to formally request more stable working hours, helping to ease the uncertainty of the precarious nature of these types of contracts. Whilst it is still in the early stages, it is anticipated that the new formal process will allow workers to request either fixed hours or a regular working schedule. A new statutory ACAS Code of Practice has been published governing how employers must deal with these requests (although it is currently in draft form), but it is expected that:
Further reforms to zero hours contracts are also still being considered by the government, which could see financial penalties introduced for employers who cancel their workers’ shifts at the last minute, and the right to reasonable notice of working hours. The new legislation is anticipated to take effect from September 2024 and whilst the legislation is still in draft form, it should serve to strengthen the rights of both workers and agency workers, providing better job security across the board and compelling employers to use these contracts responsibly and fairly. We hope that these continuing developments will create a more just and equitable labour market for all. In January of this year, we assisted several workers who had their contracts at TXM terminated after the company unexpectedly went into liquidation. Members of the RMT union have been pursuing a protective award for affected employees, as the lack of consultation can result in a protective award being made to each employee of up to 90 days’ gross pay. However, zero-hours workers are not afforded the same level of protection; there is currently no right to redundancy pay or even a redundancy consultation period for them.
One worker estimated that there were more zero-hours workers than employees working for TXM, and the lack of employment rights meant many faced significant financial loss as a result of their employment being unexpectedly terminated. Of the 13 people who have requested our help, many have between 9 and 13 years of service, collectively amounting to over 100 years. Despite being on zero-hours contracts, these workers didn’t benefit from the flexibility associated with such work. They were expected to work 43 out of 56 weekends and were told that taking more than 13 weekends off in a year would have "implications," which they believed meant having their work hours cut. The impact of this is devastating, with one worker sharing: “I’ve worked for TMX for 11 years, I’ve built relationships with colleagues and then it was all gone. I’ve been loyal to the company and received no loyalty back. I worry about my collages now, have they managed to find work to support their families after so abruptly losing work? It felt like the door was slammed in my face, while employees could rely on workers’ rights, I and the other zero hours employees were left with nothing.” A YouGov poll by ACAS in 2023 found that 3 in 5 workers (61%) are unaware of the rights of people on zero-hours contracts. So, what can you do as a zero-hours worker to secure better protection? The answer is to know your rights. Firstly, it’s a myth that you can be a zero-hours worker without a contract that specifically confirms this. Many unscrupulous employers fail to provide written contracts and later claim that employees have no rights as they were engaged on a zero-hours basis. Without a contract, your employment status will be determined by a range of factors including whether you are required to provide your services personally, whether you are obligated to accept work when offered, and how much control your employer has over your activities. Even with a written contract, it’s possible to prove to an Employment Tribunal that you are actually an employee if the terms in the contract don’t reflect the reality of the work you do. While many individuals on zero-hours contracts are classified as workers, there are numerous examples of zero-hours employees; it is always worth checking your contract to see how you are referred to. If you are referred to as an employee throughout the contract, with rights outlined that are only given to employees, then you might be an employee with full employment protection. It's also important to remember that the national minimum/living wage, anti-discrimination legislation, protection from deductions from wages, pension contributions, paid holidays, and rest breaks always apply to zero-hours workers. This includes protection against detriments suffered as a result of asserting your statutory rights with your employer, with the right to bring a claim in the Employment Tribunal if you are treated badly as a result of complaining to them. If you were dismissed, while you cannot specifically claim unfair dismissal unless you are an employee, if the termination of your employment can be linked to you asserting one of the relevant statutory rights (or is discriminatory), your dismissal could be automatically unfair, and you can claim equivalent compensation for loss of earnings as a regular employee would in a standard unfair dismissal claim. The upcoming general election could see further changes to workers’ rights with a change of government. Labour has pledged to make flexible working requests a day-one right for all workers and to ban exploitative zero-hours contracts, ensuring everyone has the right to a contract that reflects the number of hours they regularly work. To ensure better protection for zero-hours workers, it's crucial to be aware of all the laws. One loophole we've recently explored is the fact that breaks in service for zero-hours workers stop the clock on their continuous service, preventing them from achieving two years of service and gaining further employment rights. It's important to assess whether you might actually be classified as an employee based on your work patterns, such as working regularly every week and rarely turning down work. Understanding your employment status and the hallmarks of being an employee can significantly impact your rights and protections. |
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August 2024
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