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Unions worry Labour’s plan for zero-hours contracts may break manifesto pledge

Unions worry Labour’s plan for zero-hours contracts may break manifesto pledge

Summary

Trade unions are concerned that Labour’s plan to reduce zero-hours contracts might not fully meet the party’s promise to protect workers. They want the policy to cover all workers and fear that limits and rules could leave many out. The government is still deciding details as the consultation period ends soon.

Key Facts

  • Labour wants to cut zero-hours contracts to give workers contracts that match the hours they usually work.
  • Trade unions like Usdaw, GMB, and Unite warn the policy might exclude some workers due to limits on who qualifies.
  • Unions want the policy to apply to all workers, including full-time employees, without loopholes.
  • The government proposed a “regularity requirement” that unions say could disqualify many workers.
  • Business groups estimate the policy could cost companies up to £2.9 billion a year.
  • The Trades Union Congress (TUC) argues that some cost estimates assume employers won’t adapt their practices, which is unlikely.
  • Irregular work schedules on zero-hours contracts currently cost workers about £3,000 a year and affect their mental health.
  • The consultation on the zero-hours contract policy closes soon, and Business Secretary Jonathan Reynolds will lead the next steps.
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