Will Labour really end exploitative zero-hours contracts, or is this just another promise that the party won't keep?

Will Labour really end exploitative zero-hours contracts?

Will Labour end exploitative zero-hours contracts in its Employment Rights Bill? That seems to be the plan but there’s a big difference between saying something and doing it.

The Bill will include a ban on zero-hours contracts that has been widened to include agency workers, according to news reports today (Tuesday, March 4, 2025).

Nice! The detail shows that such workers will have to be offered a contract guaranteeing a minimum number of hours’ work each week – although it seems they don’t have to take it and can remain on a zero-hours contract if they want.

This may be in order to counter arguments that some people find zero-hours work suits them – for, example, people who are semi-retired.

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Apparently agency workers on zero-hours contracts whose shifts are changed at short notice will also be eligible for compensation – although it seems the Bill will not spell out what “short notice” actually means.

Other changes among the 250 amendments to the Bill that were due to be tabled today include:

  • Doubling the penalty on companies that engage in so-called “fire and rehire” practices: if they fail to properly consult employees before dismissing and then rehiring them on less favourable terms, they could be forced to pay the worker 180 days’ worth of pay in compensation – up from the current 90-day penalty payment.
  • Extending sick pay to workers earning under £123 a week from the first day of their illness, so they will be entitled to 80 per cent of their average weekly earnings or statutory sick pay – currently £116.75 per week – whichever is lowest.
  • Changing trade union rules so workers will have to give their employers 10 days’ warning of any strike action – rather than the existing 14 days’ notice, and lowering the threshold for a ballot on union recognition. Currently it can happen if 10 per cent of the workforce is a union member, and the proposal is for the secretary of state to be able to lower it.

Employers’ representatives have said these changes – that give more rights to workers – will harm jobs and growth.

This could present a real obstacle to any of the amendments actually happening – because our government is being run by the Party of Broken Promises.

We have already seen Labour ditch the ‘right to switch off’ – giving workers the ability to reject calls from employers to work extra, unsociable hours – because it would be an “unnecessary barrier to business”.

This Labour-In-Name-Only government seems unreasonably eager to co-operate with the big-money business bosses in order to keep their profits high – and unwilling to accept that this is what keeps salaries low.

But low pay is itself a barrier to business: if the vast majority of the population don’t have enough money to meet the cost of living (as is the case now), then we can’t afford to think about buying products these businesses provide – beyond the absolute necessities of life.

Best business practice has always been to share the profits of a prospering firm with the workers because it incentivises them to perform better. But many UK businesses refuse to do that. Labour should be attacking that philosophy – but isn’t.

So the changes are to be welcomed – cautiously, because Labour is as likely to take them away again as it is to push them through.


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