Zero-hours contracts in Britain may be waning

The number of people in the UK who are on zero-hours contracts hit a record high of 910,000 by the end of 2016.

This represented a leap of 13% over the number of such contracts the year before, according to an analysis of official data by the Resolution Foundation think tank.

Zero-hours contracts require people to be available for work but without providing a guaranteed number of hours to be worked. This type of contract has become increasingly popular among certain providers such as retail, restaurants and hotels.

They are not popular with the unions. The head United, the largest union in the UK, called on the British government to ban zero-hours contracts as New Zealand has done.

Len McCluskey said: “There are now close to one million people in the UK on zero-hours contracts. That’s one million people with no job security, who are earning less than people in stable work and who, from week to week, do not know what they will have to live on.

“Let’s learn from New Zealand – put workers’ welfare first and outlaw these hire and fire contracts.”

The Resolution Foundation said that although the number had risen by 100,000 in just one year, there are indications that the pace of growth is slowing. This may, it said, show that potential workers are gaining an upper hand in the run-up to Brexit.

“With the employment rate at a record high and the first inklings that firms may think the supply of labour from the EU could be limited after Brexit, employers may be finding it harder to fill roles without guaranteeing hours of work,” Resolution said.

The contracts, which erode job security and make budgeting very difficult for those on them, have garnered negative publicity and this may be another factor in a down turn in their use.

The organisation recognised, however, that such contracts provide a kind of flexibility which both employer and worker can enjoy.

“For some of these workers, zero-hours contracts may offer a flexible transition from full-time work to retirement, allowing them to top up their income,” Resolution said.

“The challenge now is to ensure that these still-popular contracts are reserved for cases of genuine desired flexibility for worker and employer.”

Last year Prime Minister May began a review of employment practices, including the use of zero-hours contracts.

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