Zero-hours contract reforms: Employment Lawyers Assess Potential Impact of an Andy Burnham-Led Administration
Zero-hours contract reforms: Employment lawyers say the government’s consultation on revisions to zero-hours contracts and agency worker safeguards could provide the clearest indication yet of how an Andy Burnham-led administration might handle employment law and labour market regulation.
The comments come after Burnham’s win in the Makerfield by-election. The Greater Manchester mayor is likely to challenge Sir Keir Starmer for the leadership of the Labour party.
Constantine Law employment specialists say a Burnham-led administration could imply a more “interventionist” attitude to workplace regulation than Starmer. But that is offset by the fact that he has sought advice from Andy Haldane, a former chief economist at the Bank of England, Richard Hughes, former chair of the Office for Budget Responsibility, and Jim O’Neill, crossbench peer and former Treasury minister who worked on George Osborne’s Northern Powerhouse.
As Constantine Law notes, one of the main obstacles that any upcoming government would encounter is the tension between Labour’s pledge to bolster workers’ rights and the need to stimulate economic growth and retain the agility that has been a characteristic of the UK labour market for many years.
Zero Hours Contracts Reforms Under Consultation
The most impactful modifications may be around zero hours, it claimed, and are under consultation until August 25.
This contains suggestions that could change the structure of workforce flexibility across a range of industries including healthcare, retail, hospitality, logistics and agriculture, including agency work.
“The consultation was a key test of the government’s policy direction,” commented John Hayes, managing partner at Constantine Law.
“The decisions on zero hours reform will say a lot to employers about the direction of travel under any future Burnham administration,” he said. “The consultation sets out a number of options that could either preserve labour market flexibility or impose significant new burdens on employers.”
Issues under discussion include, inter alia, the duration of reference periods to calculate guaranteed hours, eligibility criteria for guaranteed-hours offers, and minimum notice periods for shifts and compensation arrangements when shifts are cancelled or amended at short notice.
Flexibility Is Critical for the UK Labour Market
Historically, one of the UK’s economic assets has been the flexibility of the job market, which has helped to keep levels of youth unemployment lower than in many European countries, said Hayes.
Concerns over the growing number of young people not in education, employment or training (Neet) emphasised the need for avenues into work to be maintained, he said.
“Employers and workers’ interests are often more aligned than political discourse would lead us to believe,” Hayes added. “Policymakers must be careful that they don’t snuff out those opportunities.”
Life Is Evolving: Government Says Reforms Will Provide More Certainty
The administration claims the measures would remove the one-sided flexibility, and will help people arrange their finances and daily lives. Those that profit from zero-hour employment will be able to keep their present contracts if they choose to.
Ministers say the reforms will save workers in some of the most needy communities up to £600 in missed income from the hidden costs of insecure work.
Business Secretary Peter Kyle said: “It’s not right that people are in work on a regular basis yet don’t know what they’re going to get paid week to week. “These major changes will bring more certainty for millions and save the lowest paid workers hundreds of pounds.”
What the Zero-Hours Contract Debate Means for Employers and Workers
With consultation on zero-hours contract reforms continuing until August 25, employers and workers across healthcare, retail, hospitality, logistics and agriculture are closely watching developments. The outcome could shape the future of workplace flexibility and employment rights under any potential Andy Burnham-led government, balancing Labour’s commitment to stronger worker protections with the need to support economic growth and maintain the adaptability of the UK labour market.