Overview

This bill aims to abolish zero-hours contracts in the UK. It makes issuing such contracts illegal and renders existing ones void, mandating employers to offer employees fixed-hour contracts instead.

Description

The Zero Hours Contracts Bill prohibits the use of zero-hours contracts, defined as contracts failing to guarantee working hours and containing at least one of the following features: requiring worker availability without guaranteed work; requiring exclusive work for one employer; and failing to offer a contract with regular hours after 12 weeks of employment. Exceptions to the exclusivity clause are allowed if the employer demonstrates compelling business reasons (e.g., confidentiality).

Existing contracts with these features become void. Employers must offer affected workers new contracts with fixed and regular working hours, the specifics of which will be detailed in regulations approved by Parliament. The bill defines "worker" as someone employed, not genuinely self-employed, placing the burden of proof on the employer in legal disputes.

Government Spending

The bill's impact on government spending is not explicitly stated in the provided text. However, enforcement, potential legal challenges, and support for workers transitioning to new contracts could involve significant costs. Conversely, reduced welfare claims due to improved worker security may offset some expenses.

Groups Affected

This bill directly affects:

• Employers: They will be prohibited from using zero-hours contracts and will be required to offer new contracts with guaranteed hours to affected employees.
• Workers on zero-hours contracts: They will have the right to fixed-hour contracts, leading to greater job security and potentially improved income predictability.
• Government agencies: Responsible for enforcing the new law and possibly providing support services for affected workers.

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