Over a million people are currently employed on zero-hours contracts, with a significant proportion working in the hospitality sector. It is estimated that 31-32% of the hospitality workforce is on zero-hours contracts, meaning that a third of people working in hospitality have little or no job security and lack guaranteed income.
Zero-hours contracts are therefore a major issue for hospitality workers. Before coming to power, the Labour government pledged in its manifesto to ban zero-hours contracts. However, doubts have arisen about the government’s commitment to this pledge to ensure that all workers have contracts guaranteeing their hours. In July, the House of Lords passed an amendment to the government’s Employment Rights Bill that effectively removed the commitment to grant workers the right to guaranteed hours.
Under the Lords’ amendments, the responsibility for seeking a contract with a guaranteed number of hours would shift to employees rather than employers. If the House of Lords amendment is not rejected when the bill returns to Parliament for debate, it will effectively signal the end of the government’s pledge to eliminate zero-hours contracts, as employers will be able to put pressure on workers not to request contracts with guaranteed hours.
This is merely the latest setback in the campaign to end zero-hours contracts. The government has already diluted its commitment to ban zero-hours contracts. Under the Employment Rights Bill, workers will be able to request to stay on or be put on zero-hours contracts, which will increase the pressure on workers from employers to turn down contracts that guarantee hours, ensuring the continued use of zero-hours contracts. Although the details are yet to be released, it seems the government also plans to allow employers to hire workers on fixed-term contracts to manage seasonal fluctuations or busy periods. This represents yet another method for employers to avoid offering permanent contracts with guaranteed hours.
Even if the government adheres to its manifesto commitment to ban zero-hours contracts, it does not prevent employers from offering a minimal number of guaranteed hours, such as six hours a week, after which the employer can request that the worker undertake “overtime.” As a result, the worker will feel compelled to accept this additional work to make ends meet, leading to continued fluctuations in their hours based on the employer’s demands.
The government’s Employment Rights Bill is expected to return to the Commons in the coming weeks, and we should have a clearer picture of its intentions. However, while any legislation aimed at improving the current situation regarding zero-hours contracts is welcome, the reality is that only through workers coming together and using their collective strength to demand change will the gross exploitation in the hospitality sector be brought to an end.