Vince Cable asks for loopholes in zero-hours contracts to be exposed
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Version 0 of 1. The business secretary, Vince Cable, has urged employers and trade unions to expose loopholes in zero-hours contracts that could be exploited by "rogue employers" in the wake of a looming crackdown on the controversial employment terms. Cable is preparing to ban exclusivity clauses in zero-hours contracts that bar employees from taking on additional work elsewhere, even if their current employer is offering no shifts. Zero-hours contracts have been criticised by unions because they can tie individuals to a workplace despite providing no guarantee of work and pay each week, while often denying employees sick pay or holiday pay. In a bid to ensure that a crackdown on the exclusivity loophole is successful, Cable has asked businesses, trade unions and individuals to flag attempts to circumvent any restrictions. "We are tightening the screws on rogue employers who try to abuse workers on zero-hours contracts," he said. "We are looking closely at any potential loopholes that could arise from a ban, to ensure that these are closed off and no one can get round the new law. We are also ensuring there is access to justice for workers treated unfairly." By launching a consultation, the government is hoping to take pre-emptive steps to prevent employers from trying to get around the ban. About 1.4 million UK jobs are offered on zero-hours contracts, according to a report published by the Office for National Statistics in April. About 13% of employers have reported some use of zero-hours contracts. In the tourism, catering and food sectors, the contracts were in use by almost half of all businesses. The contracts were more commonly used by large companies than small businesses. Zero-hours contracts were found to be relatively rare among workers in the financial and professional services and the manufacturing, energy and agricultural sectors. Last year the Guardian revealed that retailer Sports Direct is a significant zero-hours employer, retaining its entire 20,000-strong part-time workforce on the terms. An estimated 622,000 people are on zero-hours contracts, the ONS said earlier this month, with some likely to have more than one contract. Cable said that while the majority of zero-hours contracts had been used responsibly by many businesses for years, some abuse does take place. "This is why we are bringing in new laws to ban the use of exclusivity clauses in zero-hours contracts, which currently stop employees getting other jobs if they need to top up their income," he said. "We want to give individuals the chance to find work that suits their individual circumstances while also giving employers the confidence to hire and create new jobs." The government is also considering options such as civil penalties, so that workers could seek justice if treated unfairly by their employer because they found work elsewhere while on a zero-hours contract. Ministers will work with business representatives and unions to develop sector-specific codes of practice to help ensure that zero-hours contracts are used fairly. The consultation on tackling avoidance on the ban of exclusivity clauses will close on 3 November. Views submitted will help to inform the implementation of the zero-hours contracts section of the small business, enterprise and employment bill. |