Zero-Hours Contracts Criticised by Business

Zero-hours contracts have sparked widespread debate after new statistics revealed a dramatic increase in their use across the UK. While businesses celebrate the flexibility, experts warn that these contracts may come at the expense of workers’ rights and financial security.

Rapid Growth in Zero-Hours Contracts

The latest ONS statistics show a 20% rise in the number of people on zero-hours contracts compared to last year. A staggering 903,000 individuals are now employed under these arrangements, up from 747,000 in 2015.

The median hourly rate for zero-hours workers stands at £7.25, compared to £11.05 for all employees. Explore more on Zero-Hour Contracts.

Employer Advantages and Industry Response

“Companies like Sports Direct aren’t thinking that zero-hours contracts will be really good for their staff,” says Marc Jones, partner at Turbervilles Solicitors. “Employers want the freedom to scale labour up and down without commitment.”

Jones warns that public criticism may simply lead to new contract labels—such as a “one-hour contract”—that deliver the same uncertainty under a different name.

Key Worker Disadvantages

Frances O’Grady, General Secretary of the English TUC, emphasizes the human cost: “Zero-hours workers earn less and have fewer rights than permanent staff. Not knowing your schedule makes paying bills and arranging childcare a nightmare.”

She calls for the creation of decent, secure jobs that people can actually live on.

Potential Benefits for Workers

Laura Farnsworth of Lewis Silkin acknowledges that, when managed fairly, zero-hours contracts can deliver flexibility for some workers. “They offer the freedom to explore new opportunities, or balance career and family commitments.”

Businesses, she notes, increasingly demand on-demand services—making agile staffing solutions “business-critical.”

Case Study: Sports Direct’s Guarantee

In response to criticism over working conditions, Sports Direct recently pledged to offer guaranteed hours to shop staff, though agency-employed depot workers remain on zero-hours contracts.

For further analysis on zero-hours contracts, see our related coverage on Trade Union perspectives and the ETUC position.