According to reports, it is suggested that Matthew Taylor’s review into modern employment practices – due to be published this summer – could give workers on zero-hours contracts the right to request a fixed number of working hours. The right to request more hours will be along the lines of the regulations such as the right to request flexible working, as employers will have to base their refusal on specific grounds such as the burden of additional costs; a detrimental effect on the business’ ability to meet customer demand; or an inability to reorganise work among existing staff.
Almost 1 million people now rely on a job that does not give them any fixed hours for their main source of income, leaving many without the security of knowing they will be able to pay their bills. In addition, critics say that the contracts allow employers to avoid their responsibilities towards workers - including paying holiday and sick pay - and make it difficult for people to plan for the future.
It is reported that the leader of the inquiry, Matthew Taylor, who is the head of the Royal Society for the encouragement of Arts, Manufactures and Commerce, will say that some employers are using the controversial contracts to exploit workers and he suggested that non-guaranteed hours could command a higher minimum wage, although he also said, “.......we don’t want a proliferation of different minimum wages, because there’s something good about the fact the minimum wage is simple and everyone understands it.”
Sources have revealed that Matthew Taylor was impressed by MacDonald’s Restaurants, who offered workers at 23 restaurants - on zero-hours contracts - the option of changing to fixed contracts with a minimum number of guaranteed hours. This was a pilot scheme reporting that 80% chose to remain on their zero-hours contracts, whilst 20% opted for the fixed number of hours. As a result of its success, the fast food giant announced it will offer its 115,000 UK employees the opportunity to switch from zero-hours contracts to fixed hour contracts. It is reported that the Taylor review will make a recommendation similar to that adopted by MacDonalds Restaurants. Mr Taylor’s plan is aimed at retaining flexibility for those workers who value their zero-hours contracts, while also opening up more options for people who need more certainty in their employment.
In its manifesto, Labour has pledged to ban zero-hours contracts.
However, the CBI states in a written submission to the Taylor review that a policy to reduce the number of flexible contracts or to increase the number of guaranteed hours in employment contracts would be misguided, as “it assumes that all employees want the same thing”.
