Should Zero Hours Contracts Be Abolished?

Spain Floods Trigger Mass Evacuations 🌊 | Homebase Enters Administration 🏚️ | Barbados PM Invites Trump to Climate Talks 🌎🤝

Welcome to today’s issue of The Debate Daily!

In today’s email: With Labour recently promising to abolish zero hour contracts, a number of arguments have been advanced against the proposal such as the fact that these jobs offer flexibility, may lead to fixed-term work for those struggling in the labour market and improve workers’ CVs, especially in the case of young or inexperienced workers. However, there is also reason to be worried about the impact of zero hours contracts as most people are not in these jobs as temporary work, they offer less flexibility than is commonly thought and their working conditions are unsatisfactory. Overall, there are benefits to these contracts but the question is whether these are outweighed by the harms done to employees in this kind of work.

By Jonny Ross and Kit Swift

The Headlines

  • Spain Floods Trigger Mass Evacuations: Severe flooding in the Costa del Sol has forced thousands to leave their homes as extreme rain continues to drench southern Spain.

  • Homebase Enters Administration: Homebase has collapsed into administration, putting 2,000 jobs at risk after owner Hilco’s efforts to sell the business failed to attract a buyer.

  • Barbados PM Invites Trump to Climate Talks: Barbados Prime Minister Mia Mottley has invited Donald Trump to a face-to-face meeting aimed at finding “common ground” on climate action, hoping to persuade him that proactive climate measures could benefit U.S. interests.

Debate #042

Should Zero Hours Contracts Be Abolished?

While zero hours contracts have rightly come under scrutiny for their abuse by bosses, the numerous benefits that they offer to many workers in the economy mean abolishing them entirely would be a mistake.

Freedom of Extra Work - If someone is working in one job and fancies or needs another job to earn some extra cash, a zero hours contract can help them find a range of employment at a time of their choice. This flexibility that zero hours contracts offer is incredibly useful for many workers who may want multiple jobs to earn a living or want to balance work with other commitments such as childcare or health treatment. Thus, abolishing this kind of work would reduce employment flexibility, making it harder for many workers to make employment suit them.

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Abolishing this kind of work would reduce employment flexibility, making it harder for many workers to make employment suit them

Further Opportunities - Sometimes, a company may only offer a zero hours contract because a fixed-term contracts is outside of their budgetary constraint. However, businesses who care about their employees will notice the hard grafters and may reward them with a better contract. In this way, workers who wouldn’t otherwise have earned a fixed-term contract can prove themselves to employers, improving their financial situation and potentially, their future employment prospects.

Improving Your CV - Any experience you get in any job has some value and may lead to better job opportunities in the long run, especially for young people and those who have little existing experience. When applying for future jobs, employers will favour those without gaps in their employment so filling these gaps with a zero hours job is better than being out of work. Therefore, denying people this opportunity denies them valuable employment experience that will allow them to fit into the job market more easily in the future.

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However…

Despite the many benefits that zero hours contracts offer, they are generally harmful to those who are on them because of the insecurity they provide, the lack of flexibility they offer for most and the lack of rights these workers have.

Insecure Jobs - Only a very small minority of those on zero hours contracts are in temporary work with only 7% being with their employer for less than three months. This suggests that the overwhelming majority are in these jobs because they are the only ones available to them rather than because they are looking for flexibility. Just 9% of respondents to a TUC poll said they took the job for work-life balance. Therefore, zero hours contracts are a symbol of job insecurity rather than job flexibility.

Lack of Flexibility - Despite common arguments that zero hours contracts are good for balancing work with other commitments, they actually leave people with very little flexibility. These employees don’t know when they’ll have to work, meaning they have to be on call all the time. This problem is exacerbated by the fact that those with zero hours contracts are generally financially insecure, meaning they may have to turn down social or leisure activities to ensure they can always work when their employer offers it.

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Zero hours contracts are a symbol of job insecurity rather than job flexibility

Poor Conditions and Rights - Those with zero hours contracts have worse working conditions and rights than those with fixed-term contracts. For example, nearly half of employees don’t compensate them if they cancel work within 24 hours and they are less likely to have a voice to express concerns at work. Again, this is a product of their likely insecure financial position that means they are liable to be penalised by bosses if they challenge their behaviour. Therefore, abolishing these contracts would be a step forward for ending worker insecurity.

Summary

Labour’s proposal to abolish zero hours contracts has sparked a debate about whether these contracts are beneficial for the economy and the workers within it or whether they actually harm them, leaving them with little job security. There are obvious problems with an outright ban because of the flexibility that they offer some workers, particularly those who have other commitments. They can also offer a way in to permanent work for many employees and they are a valuable addition to a CV, particularly those with little experience in employment. However, there is evidence to suggest that those with zero hours contracts generally take these jobs because they are the only ones available rather than for flexibility reasons. They may actually reduce flexibility too by forcing workers to be on call all the time and have to forgo social and leisure time in order to take all the hours offered to them. Finally, the rights and working conditions that those on zero hours contracts are entitled to are arguably inadequate in comparison to those in permanent work. Overall, zero hours contracts seem to be a symbol of worker insecurity in the majority of cases but abolishing them entirely would undeniably deprive many workers of some key benefits. Are these benefits enough to justify the continued use of zero hours contracts or could a ban be compatible with these benefits persisting in other ways?

What do you think?

  1. Could the benefits of zero hours contracts be retained through part-time contracts that ensure better rights for employees?

  2. Would the abolition of zero hours contracts simply lead to more unemployment because employers wouldn’t be able to afford to hire as many workers?

  3. Would it be better to allow zero hours contracts only in certain cases such as for students or for those who aren’t looking for a full-time job?

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What On Earth Is Going On?

COP 29 Tensions: Azerbaijan Criticises France

The Azeri president criticised France in the COP 29 negotiations for damaging the climate and ignoring local needs in its overseas territories.

  • On the one hand, French overseas territories are in grave danger of climate change, especially regarding rising sea levels and wildlife protection. Political issues are also ongoing in the French Overseas Territory of New Caledonia with the independence movement. The independence movement believes Paris ignores their wants and negates their voting power. 

  • On the other hand, the Azeri President unfairly negates France’s climate efforts and attempts to de-escalate political disputes in its overseas territories. COP 29 is meant to strengthen cooperation between countries on climate, and the President’s statements prevent France, a key player, from participating in the negotiations.

What does this mean:

Tensions continue to rise between France and Azerbaijan, as they have for months. Azerbaijan attacks France and even the EU as a way to justify its continued use of gas and oil and hide its own human rights issues. 

This newsletter was brought to you by Jonny Ross, Ozan Selcuk and Kit Swift

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