Companies may soon be required to offer regular contracts to workers on zero-hours agreements after just three months, under proposed reforms being discussed by the Labour Government.
Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds informed business leaders and unions in a private meeting that new legislation could oblige employers to offer zero-hours staff a regular contract with guaranteed hours after 12 weeks. The move is part of Labour’s wider push to end “exploitative” employment practices, though details are still being finalised ahead of the unveiling of the employment rights bill next month.
The three-month threshold follows the example set by McDonald’s, which in 2017 gave staff the option to switch to contracts with minimum guaranteed hours. Most employees chose to remain on flexible terms, but the initiative has been cited as a model for balancing worker protections with business needs.
Sources involved in the discussions said opinions were split, with some business leaders suggesting a longer qualifying period and union representatives advocating for a shorter time frame. A Whitehall insider explained that the three-month proposal was designed to prompt clearer responses from businesses, with further details to be developed later.
Labour has pledged to clamp down on “one-sided flexibility” in the workplace. Proposals include requiring employers to compensate staff for late-notice shift cancellations, preventing workers from being financially disadvantaged when shifts are dropped last-minute. While Labour originally considered a full ban on zero-hours contracts, it has backed away from this after resistance from businesses, particularly in the hospitality and leisure sectors, which argue that the contracts offer valuable flexibility for both workers and employers.
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