6% Rise in Zero-Hours Contracts

There has been a 6% increase in the use of zero-hours contracts by UK businesses over the past year, according to the Office for National Statistics (ONS). Between April and June 2015, 744,000 people—equivalent to 2.4% of those in employment—were on zero-hours contracts, compared with 624,000 (2%) during the same period in 2014.

Key Statistics

• 36% of employees on zero-hours contracts want additional hours.
• 5% of those workers seek an extra job to supplement their income.

Employee Preferences and Concerns

Recent research from Glassdoor found that one in four unemployed adults has been offered a zero-hours contract and nearly half have turned them down. The main reasons cited include:

• Guaranteed income needs to stop receiving benefits (54%).
• Lack of trust towards employers offering such contracts (44%).
• Negative media coverage (13%).

Expert Reactions

Laura Gardiner, senior research and policy analyst at the Resolution Foundation, warns of the “deep insecurity” these contracts can bring, especially in sectors such as hospitality where 40% of businesses use zero-hours agreements. She urges policymakers to balance labour market flexibility with robust worker protections.

Conversely, CBI director-general John Cridland maintains that flexible arrangements can be mutually beneficial, noting their prevalence among young people and parents seeking to enter or re-enter the workforce.

Organisational Insights

The CIPD’s Zero-Hours Contracts: Myth and Reality report (2013) shows that zero-hours workers report similar or higher satisfaction levels compared to the wider workforce:

• 60% satisfaction with their job (versus 59% overall).
• 65% happy with their work/life balance (versus 58% overall).
• 27% feel unfairly treated (versus 29% overall).

The CIPD recommends employers pay zero-hours workers at rates comparable to permanent staff and conduct regular contract suitability reviews.

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