As reported by the HR Magazine, there has been a 6% rise in the use of zero-hours contracts by UK businesses in the last year, according to figures released by the Office for National Statistics (ONS). The data revealed that 744,000 people (or 2.4% of those in employment) between April and June 2015 were employed on zero-hours contracts, up from 624,000 (2%) for the same period a year earlier. It also found that more than a third (36%) of employees on zero-hours contracts want additional hours, and that one in 20 (5%) workers on contracts with no guaranteed hours want an additional job to supplement their current role.
CBI director-general John Cridland said that such flexible contracts are often mutually beneficial for employer and employee.
“These figures, which show zero-hours contracts are a small proportion of the UK labour market, again illustrate that they are most common among groups where flexibility benefits both parties,” he said. “For example, more than a third are young people taking their first steps in the labour market.
“Labour market flexibility continues to be a great asset to the UK economy, helping to increase the participation rate of parents – women in particular – and of older workers.”
The CIPD responded to the figures by highlighting findings from its 2013 Zero-hours contracts: myth and reality report, which showed that zero-hours workers are just as satisfied with their job when compared to the average UK employee (60% vs 59%), happier with their work/life balance (65% vs 58%), and less likely to think they are treated unfairly by their organisation (27% vs 29%).
The CIPD recommended employers using zero-hours contracts ensure those workers are paid at comparable rates to others doing the same or similar work, and conduct regular reviews on whether zero-hours contracts are appropriate for the nature of the work involved.
Comment: We think these types of contracts ARE a useful tool – when used in the right circumstances, and many employers as well as employees need such contracts in todays flexible labour market.
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