Laura Sharman 25 March 2014

Councils urged to ‘scale back’ zero-hours contracts by think tank

Local authorities have been urged to scale back the use of zero-hours contracts and consider staffing conditions when awarding care contracts, in a new report.

Zeroing In, published by think tank the Resolution Foundation, rejects banning zero-hours contracts outright but argues there are ‘clear signs’ of abuse and poor practice.

It makes five recommendations including giving staff on zero-hours contracts the legal right to switch to a fixed hours contact after 12 months if they have worked regular shifts over this period.

It urges local authorities to commission care work on outcomes rather than by time slots to give providers greater control of their own staffing patterns. It also wants councils to consider the working conditions of staff in terms of social value when awarding care contracts.

Vidhya Alakeson, joint author of the report and deputy chief executive of the Resolution Foundation, said: ‘The argument that nothing can be done to address the inappropriate use of zero-hour contracts is as unconvincing as that which says that they should just be banned outright.

‘These proposals strike a balance, keeping the flexibility that some people value and adding far more security and clarity for workers. With these practical steps and an effort to develop good practice among employers it should be possible to protect the rights and conditions of workers without limiting the flexibility of firms.

‘Not all firms misuse zero-hours contracts and a few staff even prefer them but it’s clear there’s substantial abuse of these contracts which affects a significant minority of the workforce. In particular, there is no justification for keeping a regular worker on a zero-hours contract for more than a year.’

The report also calls for a ban on exclusivity clauses in zero-hours contracts, and says everyone on a zero-hours contract should receive a statement of their terms of employment.

The Government is expected to announce its outcome of its review of zero-hours later this Spring.

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