The most publicised complaint of workers on zero hours contracts is lack of a regular income and job insecurity. One week a worker may work 15 hours, the next 45 hours and no work the next week. How can such workers plan their life, pay their bills and feed their children? Many would say with difficulty.
The zero hours debate hit the headlines just recently when it was revealed that Sports Direct employs almost all of its 22,000 workers on zero hours contracts with the exception of about 2,000 staff who are about to cash in on bonuses of up to £100,000 from a share participation scheme.
The Office of National Statistics has estimated that 250,000 workers are on these contracts while others have suggested the total could be nearer to half a million. The practice is frequently found in social care and hospitality but has spread into local government, the NHS and across the private sector.
Many economists suggest that unemployment in the UK has remained relatively low compared to other countries because of the growth in zero hours contracts and this has had a positive impact on returning the UK to economic growth. In fact many workers seek out zero hours contracts because they suit their personal circumstances such as students, mothers of young children who want to work but can’t commit to 9 to 5, part-retired workers who wish to adopt a work life balance where work forms a small part of the equation and of course most workers on zero hours can decline work if it doesn’t fit with their personal needs. Also there are many workers on zero hours contracts who are content to wait for an offer of a permanent contract either with their current employer or another.
So who wins the argument? Well the jury is still out, but my guess is that there will be further growth in the number of workers on zero hours contracts. Why do I say that? Well it is the private sector leading the country back to economic growth and for the major part it is the small and medium sized private sector companies that are creating the wealth. As they grow, many do find it less onerous to hire staff on zero hours contracts so that the work place demand and supply model can become more easily balanced so improving productivity and profitability.
Dr Hugh Billot, Deputy Chairman
HR GO Group of Recruitment Companies
HR GO Recruitment offers solutions to all your staffing needs, temporary and permanent, please call 0845 130 7000
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