Zero-Hour Contracts Reach Record High Ahead of Labour's Legislative Crackdown
New analysis has revealed that the number of workers on zero-hour contracts has reached a record high of 1.23 million, with the figure rising by 91,000 over the past year. This surge comes just ahead of Labour's planned crackdown on these controversial employment arrangements through its flagship Employment Rights Bill.
Young Workers Driving the Increase
Research conducted by the Work Foundation at Lancaster University indicates that the increase has been driven primarily by young workers aged 16 to 24. Zero-hour contracts, also known as casual contracts, are arrangements where employers are not required to guarantee workers a minimum number of hours. While workers on these contracts are not obligated to accept shifts and can pursue other employment opportunities, they are most commonly utilized within the hospitality sector.
Labour's Legislative Response
Labour has legislated to address what it describes as "exploitative" zero-hour contracts as part of its Employment Rights Bill. The changes, scheduled to take effect in 2027, will provide workers with several new protections. These include the right to guaranteed hours for those who regularly work beyond their contracted number, more reasonable notice of shifts, and compensation for shifts that are cancelled or changed at short notice.
The bill will also introduce significant additional reforms. Parental leave and sick pay will become available from the first day of employment, while protection from unfair dismissal will be enforced after six months instead of the previous two-year requirement. Controversial "fire and rehire" practices will be outlawed, and trade union rights will be strengthened under the new legislation.
Mixed Views on Zero-Hour Contracts
While proponents argue that zero-hour contracts can help young people secure their first jobs and offer flexibility for those who need it, critics highlight significant drawbacks. They point out that these contracts are often used inappropriately, leaving workers with unpredictable schedules, no guaranteed income, and an inability to plan their finances effectively.
Industry and Union Reactions
TUC General Secretary Paul Nowak commented on the Work Foundation's findings, stating: "Change can't come soon enough for workers across the country. These new figures show zero-hour contracts are still plaguing the labour market – trapping workers in insecure jobs with little control over their hours and pay. That's why the Employment Rights Act, which is set to ban exploitative zero-hours contracts, is so important. These new rights must be implemented in full and as soon as possible."
The analysis also reveals that the number of workers on zero-hour contracts has increased by 181,000 since Labour came into power in 2024. The Work Foundation stated that this rise reinforces the urgent need for the new rights to be delivered promptly.
Expert Analysis and Government Response
Ben Harrison, Director of the Work Foundation at Lancaster University, said: "This new data indicates that some employers continue to rely on highly precarious forms of employment such as zero-hour contracts, despite the government's commitment to curb their use. Such arrangements underpin the kind of 'one-sided flexibility' that leaves over a million workers unsure how many hours they will work or how much money they will earn next week."
Harrison added: "Now the Employment Rights Act has passed, it is imperative that legislators prioritise finalising the new regulations that will provide workers with a new right to guarantee hours. Our previous research indicates that nine in 10 zero-hour contract workers in 2023 would have qualified to be offered guaranteed hours under the government's original proposal of a 12-week reference period. This would represent an important step towards providing more security and certainty for workers currently on these kinds of insecure contracts."
A government spokesperson responded: "Tackling insecure work is vital if we are to boost incomes, raise living standards and increase productivity. Our Employment Rights Act will ensure people can have the security they need by giving eligible workers the right to guaranteed hours, and we will work closely with workers and employers alike on how the measures are implemented."
