The UK’s Employment Rights Bill is set to ban zero-hour contracts in favour of guaranteed working hours.
A major shift has hit employment law in the UK. Starmer’s Labour government has decided to ban what some may say are exploitative zero-hours contracts, extending protections to both directly employed and agency workers.
The UK’s landmark amendment to the Employment Rights Bill promises greater job security – but has sparked massive debate about the implications for workers and employers alike.
Zero-hours contracts, which offer no guaranteed hours, have long been criticised for enabling undependable work conditions. These can lead to work and financial anxiety for Gen Z and all workers alike.
They are being phased out under new legislation. The government will now require employers to offer guaranteed-hours contracts based on a 12-week reference period creating greater financial stability for workers and allowing them to plan how they spend, save, and ultimately survive.
This is significant for young people who are just learning how to grasp financial literacy in a time of economic regression and a cost-of-living crisis.
Workers may still opt to remain on zero-hours contracts voluntarily but must be formally offered more secure alternatives.
However, some are concerned that workers will be passive aggressively bullied into ‘voluntarily’ staying in zero-hour contracts for the benefit of big corporations and money hungry companies. Especially when considering most people who take on zero-hour contracts are often either looking for flexible work or are strapped for cash.