Zero-hours Contracts

Baroness Quin Excerpts

Thursday 11th June 2015 Lords Chamber

Asked by

[Baroness Quin]

To ask Her Majesty’s Government what plans they have to undertake a review into zero-hours contracts of employment.

[The Parliamentary Under-Secretary of State, Departments for Business, Innovation and Skills and for Culture, Media and Sport (Baroness Neville-Rolfe) (Con)]

My Lords, the Government’s previous review showed that zero-hours contracts have a place in today’s labour market, offering flexibility to both individuals and employers and helping business to meet varying demand. However, people on these contracts deserve a fair deal, which is why the Government have banned exclusivity clauses in such contracts—and I am glad to say that the ban came into force on 26 May.

[Baroness Quin (Lab)]

My Lords, I am grateful to the Minister for listening to some of my concerns when we spoke recently about this, but can I urge the Government to look at two things in particular? First, the use of these contracts in the care sector is undermining continuity of care, which is so important to carer and client. Secondly, there are huge problems facing those who seek permanent employment but are simply offered zero-hours contracts, which means that they face permanent financial insecurity, are unable to access the housing market and are forced on, off, and on benefits, which causes great stress and hardship. If the Government are serious about helping working people to get on, as they say in the Queen’s Speech, surely these abuses of zero-hours contracts need to be tackled urgently.

[Baroness Neville-Rolfe]

My Lords, most employers using zero-hours contracts value the opportunity and flexibility that they offer, and individuals on them are able to earn as much or as little as they choose. In the minority of cases when they are not used responsibly, banning exclusivity clauses will free up individuals to secure additional income elsewhere. The Department of Health is working with local authorities to ensure that the providers from which they commission services have a high-quality workforce with fair terms and conditions, and we are getting on with creating a route of redress against employers who ignore the ban.