End of exploitative zero hours contracts to give people security and predictability at work

Changes to end one-sided flexibility and uncertainty for workers through ban on exploitative zero hours contracts set out in consultation

• Changes will end one-sided flexibility, help people plan their finances and daily lives, or enjoy benefits of a zero hours contract if they wish to keep one.
• This will help save workers in some of the most deprived areas up to £600 in lost income from the hidden costs of insecure work.
• Millions of workers who currently face uncertainty over their weekly hours and earnings will benefit from government reforms that will give them certainty and predictability over their income.

Ministers have today taken the next step to ending exploitative zero hours contracts by launching a consultation to help deliver reforms to benefit more than 18 million people who currently face uncertainty over their weekly hours and earnings. 

Nearly six in ten of workers who have variable hours currently receive less than a week’s notice of their shifts, according to the Living Wage Foundation. That means millions of working people struggling to plan their lives and budgets. In the worst cases it means shifts cancelled the night before or even while people are already on their way to work.  

This will help save workers in some of the most deprived areas up to £600 in lost income from the hidden costs of insecure work. 

While those who value the flexibility of a zero hours contract will still be able to choose one, exploitative arrangements, where employers take all the flexibility and workers bear all the risk, will be banned.  

Workers, who qualify, will also be entitled to receive reasonable notice of their shifts and a payment if their shifts are cancelled, moved, or curtailed at short notice. This will stop workers travelling into work for shifts or arranging care for children and relatives, only for a shift to be cancelled at the last minute without pay. 

This open consultation, which will close at the end of August, will ask employers and workers about a range of potential hours thresholds to help the Government to strike the right balance between protecting workers from insecure work and retaining flexibility for businesses and workers who benefit from it, while building a more resilient economy and guarding against unintended consequences from this major change to the Labour market. 

Employers who already provide this security and predictability for their workers will benefit from a level playing field. These measures will help drive up standards and eliminate undercutting. 

Business Secretary Peter Kyle said: 

"It’s not right that people can work regular hours but still have no certainty about their pay from week to week. These vital changes will mean more certainty for millions of people and will save the lowest paid workers hundreds of pounds. 

"Banning exploitative zero hours contracts is totemic because this government believes that people should be treated with dignity and respect at work.  

"We’re consulting because we need to get the detail right to ensure these reforms work in practice and guard against unintended consequences from this major change to the labour market."

Employment Rights Minister Kate Dearden said:  

"Ending uncertainty over hours and pay is one of the best ways we can boost living standards for millions of people and families across the country. 

"These reforms put workers in the driving seat, giving those who want guaranteed hours the certainty they deserve, whilst protecting others who prefer the flexibility a zero hours contract offers."

Businesses can reduce staff turnover, improve skills, and boost productivity by improving job quality and workforce wellbeing by giving workers more security. This in turn can provide a boost to growth in the economy. 

The government wants to hear from workers, employers and other organisations to help shape the final detail of these reforms and ensure they work in practice. 

Niall Mackenzie, Acas Chief Executive, said: 

"These reforms aim to end irresponsible use of zero hours contracts, with guaranteed hours for workers to help give them financial stability and security. Some workers may value the flexibility of a zero hours contract if they are being used fairly and responsibly and this consultation aims to get this balance right. 

"I would encourage employers and workers to respond with evidence on what would work best in practice, alongside any further guidance that would be useful. Acas currently has free advice for employers on how to use zero hours contracts responsibly, which will be updated once these new changes come into effect.”"

From: Department for Business and Trade, Kate Dearden MP and The Rt Hon Peter Kyle MP