Business Secretary Vince Cable announced earlier this week that legislation could be introduced before the end of this Parliament to tackle the exploitation of workers on zero hours contracts.
Announcing the move during the Liberal Democrats’ annual party conference in Glasgow, Dr Cable floated proposals for new protections for employees in a bid to make the workplace and wages “fairer for everyone”.
According to the Office for National Statistic (ONS), there are around 250,000 workers on zero hours contracts, although the Chartered Institute of Personnel and Development recently put the total at closer to a million, while a recent union survey suggested the contracts could affect as many as 5.5 million people.
Under the contracts, revealed to be used extensively by large chains such as McDonalds and Subway, workers have no guarantee of how much work they will be given each week, making it very hard for them to budget.
However, under plans to be put out to public consultation later this year, most companies will no longer be able to demand that employees work exclusively for them unless they provide agreed minimum hours. The consultation is expected to conclude in the New Year and it could result in legislation in next May’s Queen’s Speech, if government time is available.
There will be no promise to ban zero hours contracts or exclusivity agreements altogether, however, as the Business Secretary believes that they are suited to some occupations.
The moves follow accusations from the Labour party that the coalition has produced a “recovery for the rich” but Dr Cable has promised to act to ensure that the benefits of growth are shared “fairly across the board”.