Business Secretary Vince Cable is under pressure to tackle abuse of zero-hours contracts following publication of research this week estimating more than 1 million workers could be affected.

The survey by Chartered Institute of Personnel and Development (CIPD) polled more than 1,000 employers and revealed far more extensive use of the contracts than the government’s official estimate, which puts the figure at 250,000.

Under zero-hours contracts, employees agree to be available as and when needed but are not guaranteed paid work. They can be sent home without warning and often get no holiday or sick pay.

The CIPD says the contracts are most common in hotels, catering and leisure, education and healthcare. High-profile employers using them include Sports Direct, Buckingham Palace and Amazon.

Mr Cable has been conducting a review of the issue (LELR 324) and now says he will decide in September whether or not to hold a formal consultation on specific proposals.
Victoria Phillips of Thompsons believes employers are cynically using zero-hours contracts “to keep people mean and hungry”.

She said: “There is no excuse for retailers such as Sports Direct having thousands of people on them. It doesn’t take a genius to plan the number of staff you need – few employers would need more than a small minority of casual staff to deal with peaks and troughs.

“And most seasonal variations are themselves predictable. After all, we know Christmas comes every year and staff can be recruited on temporary contracts, giving them guaranteed hours and the right to holiday and sick pay.

“It’s clear that companies who make use of zero hours contracts are trying to keep the workers hanging on the end of a phone to make them as compliant as possible so that they don’t exercise their rights.

“There’s a solution to this which is right in front of the government’s nose, obviating the need for a review. They have the power (so far unexercised) in section 23 of the Employment Relations Act 1999 which would allow them to confer rights on individuals.

“This should include the right to work for more than one employer and the right to turn down work without losing the contract.”