Business leaders warn that the government's plan to end exploitative zero-hours contracts could backfire by reducing seasonal work opportunities, particularly for the crucial Christmas period, unless the reference period for guaranteed hours is extended to 26 weeks.
The UK government's Employment Rights Act , spearheaded by Labour's former deputy leader Angela Rayner, is generating controversy over its potential impact on seasonal hiring, particularly for Christmas work.
The legislation aims to combat exploitative zero-hours contracts by requiring employers to offer guaranteed hours to regular workers. However, business leaders are warning that the proposed method for calculating these hours-using a 12-week reference period-would be unworkable for industries with seasonal peaks. They argue that a 26-week period is necessary to accurately reflect fluctuating demand and maintain flexibility for temporary and seasonal roles.
The concern is that without such flexibility, employers will reduce offering short-term shifts during busy periods, such as the holiday season, ultimately decreasing job opportunities rather than increasing security. Sectors like retail and hospitality emphasize that over-regulation could inadvertently increase instability for workers who value flexible, temporary work, especially given the current high youth unemployment rates.
The government, however, maintains that the reforms include provisions for fixed-term contracts to manage seasonal demand and that the changes will provide much-needed pay certainty for millions. The debate continues as consultations proceed, with employers fearing increased costs and red tape, while the government asserts its commitment to balanced implementation that supports both businesses and workers
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