Zero-hours contracts: ministers’ detailed plans for ban criticised by firms and unions
The government has set out how it wants to phase out zero-hours contracts, but unions and business groups both say the plan gets key details wrong.
Intelligence analysis by GPT-5.4 Mini
Ministers want workers on regular hours to be offered guaranteed weekly hours, with the government preferring a floor of eight to 20 hours based on a 12-week average. Unions say that is too weak, while employers warn the rules could reduce flexibility and hiring.
The government wants to stop workers from being stuck with no set hours, like getting a different puzzle each week with no instructions. It wants employers to promise some hours, but shops and unions are arguing about how many hours and how flexible the rules should be.
Analysis
What ministers proposed
The government has launched a consultation on how to implement its plan to ban zero-hours contracts. Under the preferred option, employers would have to offer a contract with guaranteed hours each week based on a worker's regular pattern over a 12-week reference period.
The government said its preference is for guaranteed hours of between eight and 20 a week. Workers would still be able to choose a zero-hours arrangement if they wanted it, but they would be eligible for compensation if shifts were changed at short notice.
Why the plan is controversial
The article says more than 1 million people in the UK work on zero-hours contract terms, across pubs, restaurants, warehouses and hospitals. Business secretary Peter Kyle argued the change would give people more certainty about pay and help the lowest paid workers save hundreds of pounds.
Unions welcomed the overall direction but said the government was backing the right to guarantee no more than 20 hours a week, which they see as too low for many workers who regularly do more. Usdaw said many members already work more hours than they are formally contracted for, and that those extra hours can be taken away at the employer's discretion.
Employers also pushed back. UKHospitality said access to zero-hours contracts remains crucial, especially because hospitality work is seasonal, and argued for a 26-week reference period instead of 12 weeks. The British Retail Consortium warned that tighter rules could make employers hire fewer part-time staff for busy periods such as Christmas and could deter good employers from taking people on in the first place.
The government says it is consulting because it wants the detail right and wants to avoid unintended consequences as it changes labour-market rules.
Key points
- The government wants employers to offer guaranteed weekly hours based on regular working patterns.
- Its preferred range is eight to 20 hours a week, measured over a 12-week reference period.
- Unions say the proposal falls short of Labour's manifesto promise and still leaves many workers insecure.
- Employer groups warn the rules could reduce flexibility and make hiring riskier, especially in seasonal sectors.
- More than 1 million people in the UK are on zero-hours contract basis.
If the plan is set well, more workers could know how much they will earn from week to week. The government says that could help the lowest paid workers and still leave room for people who want flexible work.
If the guarantees are too low, unions say many workers may still face unstable income and short-hours contracts. If the rules are too strict, employers warn they may cut back hiring or flexibility, especially in hospitality and retail.
