Published byThe Association of Recruitment Consultancies - ARC

Exploitative zero hours contracts

Within its proposals to amend employment law the new government has indicated that it intends to outlaw exploitative zero hours contracts. Along with changes to employment status for workers this could potentially be upsetting for the business of temporary and contractor supply.

The crucial word is ‘exploitative’, which at this stage has not been fully defined. One interpretation is that it means a worker shall not be subjected to a requirement to work for the employer in the context that there is no corresponding obligation on the employer to provide work. This does not normally exist in recruitment supply, although there have been some instances of this in the past. There could also be ramifications for some banked staff models.

Whilst there is no formal consultation at this stage, the Association of Recruitment Consultancies is in discussion with the relevant department to express how the concept of the proposal may affect the supply industry. Clearly a fine line will be needed to ensure that the industry norm, where agency workers keep the freedom to provide their services for actual work offered, is retained.

In due course a formal consultation is likely. If this transpires, or legislation is drafted, as always the devil will be in the detail. One way or another the industry represents a valuable resource to businesses and the UK economy, and ARC will respond appropriately.

If supply agencies have any views on this please contact ARC at info@arc-org.net.

Adrian Marlowe
Chairman