Zero-Hour Contracts 'Unfairly Demonised'

A survey of workers on controversial zero-hour contracts has found their growing use has been "unfairly demonised".

The report by the Chartered Institute of Personnel and Development (CIPD) suggested that those on zero-hours were just as happy with their job as the average worker and more content with their work-balance balance.

Unions have been among the vocal critics of such contracts, which offer no guaranteed hours of work.

But just over half of the 456 people questioned said they did not want to work more hours.

Four out of five zero-hours workers said they were never penalised if they were unavailable for work because of other commitments, the CIPD reported.

Peter Cheese, chief executive of the human resource-focused group, said: "The use of zero-hours contracts in the UK economy has been underestimated, oversimplified and in some cases, unfairly demonised.

"Our research shows that the majority of people employed on these contracts are satisfied with their jobs.

"However, we also recognise that there is a need to improve poor practice in the use of zero-hours contracts, for example the lack of notice many zero-hours staff receive when work is cancelled.

"If this is unavoidable then employers should at least provide some level of compensation.

"In addition, it seems that many employers and zero-hours staff are unaware of the employment rights people on these types of working arrangements may be entitled to."

The CIPD said that where zero-hours contracts are being used for the right reasons, they provide flexibility for workers and employers.

The study confirmed CIPD's previous estimate that around one million people in the UK are on zero-hours contracts, although other surveys have suggested that the figure is much higher.

Steve Radley, director of policy at the manufacturers' organisation EEF, said: "The debate on zero-hours contracts has become unbalanced and needs greater focus on the benefits it can bring to both workers and employers.

"With skills in scarce supply, zero-hours help employers to tap into specialist skills when they are needed and to draw on the experience of older workers.

"For many workers, zero hours give them the flexibility and they allow older workers to taper the transition from work to retirement."

But TUC general secretary Frances O'Grady said: "Whilst not every employee on a zero-hours contract is exploited, this survey shows that job insecurity and low pay are concerns for a significant number of workers, including white collar staff.

"The CIPD guidance will help enlightened employers manage zero hours contracts better.

"But the real problems lie with bosses who aren't interested in good practice and are more concerned with squeezing staff to boost their profit margins.

"That's why we need legislative action to stamp out the growing abuse of workers on zero hours contracts and other forms of insecure work."

Shadow trade minister Ian Murray said Labour would outlaw the "exploitative" use of zero-hours contracts.

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