Labour has pledged to end the “unpredictability” of zero hours contracts in its new Employment Rights Bill – but that could make things challenging for the construction industry.
Zero-hour contracts work by giving no guarantee on how many hours people work, though workers can also reject some hours they are offered.
For the construction industry the model can be effective, according to David Browne, head of employment at law firm, Shakespeare Martineau.
Browne said: “Work patterns in the construction sector are uniquely changeable. With project delays sometimes unpredictable, zero hours contracts are used by employers to ensure that work don’t come to a grinding halt because of unforeseen circumstances.
“The Bill will end “exploitative” zero-hours contracts, although more detail will be required to understand what that means in practice.
“Construction companies will have to review their use of zero hours contracts, and may need to ensure that they will be able to offer guaranteed hours if required to some staff.
“Processes for shift change notification, rotas and project progress updates will all have to reviewed, to ensure companies are compliant with the new legislation.”
The Employment Rights Bill plans to make it so workers have the right to ask for guaranteed hours based on a 12-week reference period. They should also get a “reasonable number of shifts” and compensation if shifts are cancelled at short notice.
Workers who want to stay on a zero-hours contract will be able to so.
Browne added: “The government’s reform is unsurprising and while zero hours contracts have been unpopular for a long time, they do offer flexibility for a number of people, particularly in the construction sector and are perhaps not the devil they’ve been made out to be.
“Whilst most would agree that zero hours arrangements should not be exploited, it is telling that an outright ban on their use has not been imposed.”
