The number of workers on zero hours contracts has almost tripled since 2005. Figures published by the Office of National Statistics show that in 2005 there were 55,000 people employed on zero hours
The number of workers on zero hours contracts has almost tripled since 2005. Figures published by the Office of National Statistics show that in 2005 there were 55,000 people employed on zero hours contracts; this figure reached a record high of 200,000 by the end of 2012. Media commentators have been quick to criticise this trend, which allows employers to hire staff without guaranteeing any particular hours of work or income.
Zero hours contracts are most commonly used in industries where work fluctuates unexpectedly, such as the retail and services sectors. Employers in these sectors may have a genuine need to employ staff on an ad hoc basis, for example due to seasonal variations in work. Zero hours contracts are also often used for "bank" staff in the care and education sectors to provide cover when permanent staff are unable to attend work. The zero hours contract allows employers to ensure they only pay staff for hours they have actually worked to meet the employer's business need.
Are zero hours contracts really such a raw deal for workers? Often the worker is under no obligation to accept the work that is offered and so the contracts may suit some people who want occasional earnings and who are not able to commit to regular hours. In theory this also leaves the worker free to search for a permanent job. However, contracts can be drafted so that a worker is expected to be available for work if and when it is offered and a refusal to accept work may lead to the contract being terminated.
Does a scarcity of full time permanent employment mean that workers have no alternative but to agree to a zero hours contract? Some commentators argue that the rise of zero hours contracts is an indicator of desperation within the economy and the exploitation of workers. Is this a realistic picture?
UK employment is on the increase and not just because of the increased use of zero hours contracts. Statistics recently published by ONS show an increase of 154,000 people in work from October to December 2012 compared to the previous three months, and 73% of those people were working full time. The proportion of workers on zero hours contracts is still small when compared to UK employment as a whole. The increase in zero hours contracts may therefore simply be a reflection of the overwhelming pressure on employers to find new ways to minimise direct employment costs to remain competitive in a struggling economy.
Zero hours contracts are most commonly used in industries where work fluctuates unexpectedly, such as the retail and services sectors. Employers in these sectors may have a genuine need to employ staff on an ad hoc basis, for example due to seasonal variations in work. Zero hours contracts are also often used for "bank" staff in the care and education sectors to provide cover when permanent staff are unable to attend work. The zero hours contract allows employers to ensure they only pay staff for hours they have actually worked to meet the employer's business need.
Are zero hours contracts really such a raw deal for workers? Often the worker is under no obligation to accept the work that is offered and so the contracts may suit some people who want occasional earnings and who are not able to commit to regular hours. In theory this also leaves the worker free to search for a permanent job. However, contracts can be drafted so that a worker is expected to be available for work if and when it is offered and a refusal to accept work may lead to the contract being terminated.
Does a scarcity of full time permanent employment mean that workers have no alternative but to agree to a zero hours contract? Some commentators argue that the rise of zero hours contracts is an indicator of desperation within the economy and the exploitation of workers. Is this a realistic picture?
UK employment is on the increase and not just because of the increased use of zero hours contracts. Statistics recently published by ONS show an increase of 154,000 people in work from October to December 2012 compared to the previous three months, and 73% of those people were working full time. The proportion of workers on zero hours contracts is still small when compared to UK employment as a whole. The increase in zero hours contracts may therefore simply be a reflection of the overwhelming pressure on employers to find new ways to minimise direct employment costs to remain competitive in a struggling economy.