Zero Hour Contracts Abolished

Zero hour contracts. A contract filled with confusion, ambiguity, and deep-seated uncertainty in the world of contracts and agreements for (typically) younger generations.  

Zero hour contracts were recently abolished as of July 2024 (BBC, 2024), meaning the 'exploitive' employment scheme has now been eradicated. A Zero hour contract meant that employers are able to access workers only 'when and if they need them' meaning regular work and shift rotas were non-existent. Companies who used this contract scheme included (but was not limited by) Amazon, Burger King, Sports Direct and DHL (Moonworkers (Nicolas Croix), 2023). 

Recent studies concluded that around 1 million people work under zero-hour contracts and under-25's are five times more likely to be contracted under zero hours (BBC 2024). 

So why are these contracts so damaging but also perhaps good? 

Advantages

1. The flexibility of these contracts means it offers a wide dynamic offering of jobs, for example should someone work a stable consistent job but then is looking to make more cash in their free time they can take up a zero hour contract job (think like Uber Eats and Deliveroo or some of the previously mentioned companies) (CIPD 2022). It also means they can manage 'at home' work like caregiving or educational commitments while maintaining a (relatively) stable income source
2. It offers a new entry into a workforce. Similarly to the previous point it offers a 'work around' to those who may struggle finding experience into a workforce due to personal commitments thereby providing a degree of work experience and potentially future employment capabilities (CIPD 2022)
   
   

Disadvantages

1. There's a significant lack in job security. Without the security of specified weekly hours, then it's hard to guarantee anything relating to finances, such as rent, mortgages, food and basic requirements everyday. It also creates issues when people need access to credit and even benefits (CIPD 2022) (Dealer Support 2024).
2. Similarly to its Advantageous counter part in Point 1., there's a lack of flexibility. Workers may feel pressured to work hours unexpectedly, putting there other commitments in tatters to exclude being offered future shifts. On top of that, there's no compensation for called in workers for last minute cancellations, meaning employers hold all of the player cards with zero hour contracts.
   

In relation to 'job security' other nations have had similar problems. New Zealand became a pioneer of abolishing zero hour contracts by becoming one of the first to do it. The legislation was implemented to give power back to the employees and thereby meant that New Zealand prevented employers exploiting workers by not offering set hours of work, while still forcing them to be available at a moments notice (The Guardian, 2016)

Similarly, in Montana USA, they had a law that meant they could terminate any member of staff or employee without giving proper reason, cause or evidence. A employee could be there and suddenly be gone! This emphasises a significant lack of job security for workers in Montana and meant all power was given to employers (again) and meant workers were exploited and treated like grunt workers regardless of their value they provide to the company. Thankfully, this was abolished and offered significant job security and highlighted the importance of flexibility and employment law within the US State (Montana State Legislature, 2023).

Young workers are the most likely to suffer from zero hour contracts, with some even describing it as the 'standard' for youth employment. Fraser Mcguire spoke to the BBC. He currently works at a pub and hotel, both on a zero hour contract basis. He stated 

"It can be really difficult mentally as well as obviously financially...One month, I might be able to get easily enough to make my rent and make ends meet but then the next month, I might not be able to at all."

This exemplifies the difficulties these contracts had. Fraser goes on to say that this new Workers Rights Bill is a 'step in the right direction'. 

In conclusion. It's a step forward for employees been given equal, fair and proper treatment by their employers. The added security can give people peace of mind with their finances and planning for the future, and hopefully make a safer environment for employees welfare.