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Should zero-hours contracts be banned?

The controversial zero-hours contracts are in the headlines again, with the continued debate as to whether they should be banned. From Leon Deakin, employment specialist and Partner at Coffin Mew Solicitors.
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The controversial zero-hours contracts are in the headlines again, with the continued debate as to whether they should be banned. From Leon Deakin, employment specialist and Partner at Coffin Mew Solicitors.

In my experience, the concept of zero-hours contracts is not itself a problem and more importantly they can actually can be a mutually beneficial and popular method of working for both employers and employees in certain areas of the economy.

Taylor review
I agree with the Taylor Review that any blanket ban would be throwing the baby out with the bath water and, if effective, could even harm business growth and therefore employment levels.

Contrary to what may have been suggested in some sections of the media, there is a proportion of the workforce that genuinely like the flexibility offered by a zero-hours arrangement. There is also a proportion of industry that is prepared to comply with the law, is not out to exploit workers and needs to work in this way to maintain a competitive edge or simply stay afloat. Such companies should not be penalised. Of course, a balance needs to be struck to ensure those less scrupulous businesses which are out to exploit do not have a free hand.

From a legal perspective, I am not even sure how a blanket ban could effectively be achieved. Surely, we would just see employees offering minimal fixed hours (say one hour per week) with the ability to work more if agreed, or perhaps just increasing their use of temporary agency staff or short duration fixed term contracts.

Better awareness of worker’s rights
Likewise, a right to request a minimum amount of guaranteed hours after a specified length of service such as 12 months could potentially be undermined by using short term appointments only. Accordingly, ensuring better awareness of worker’s rights and proper enforcement of any breaches must be preferable.

In short, the lack of obligation to work cuts both ways. The employment system should find a way to operate more fairly, without shutting down an important method of working at a time when our economy needs to remain competitive and nimble. Until we have more persuasive evidence about what attracts workers to zero-hours contracts, their existence will remain a bone of contention.

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