Government urged to reconsider zero hours reform
The government is being warned that the reform proposed in zero hours contracts under Employment Rights Bill will put undue administrative and financial burdens on employers in the retail industry as they rely heavily on part time, seasonal and casual workers. The House of Lords’ first committee debate on the Employment Rights Bill took place on Tuesday (April 29), with guaranteed hours contracts and penalties for shift cancellations on the agenda. However, leading audit, tax and consulting firm RSM UK warns the bill in its current form puts undue administrative and financial burdens on employers, particularly in the retail and hospitality sectors, which rely heavily on part time, seasonal and casual workers.
Currently, the proposed bill means employers will have to offer workers on zero or low hours contracts a guaranteed number of hours, based on the average number of hours per week worked which is expected to be over a 12-week reference period.