Government to consult on zero-hours contracts and ask LPC to consider raising the NMW faster
Zero Hour contracts (ZHC)
The consultation will focus on tackling any abuses found in the system and making sure employees get a fair deal. The four main areas of concern are;
- exclusivity clauses (clauses allowing work only for one company with no set hours)
- lack of transparency (no legal definition of ZHC)
- uncertainty of earnings (dependant on hours worked with no set hours)
- the balance of power in the employment relationship
(Fear employees must accept any hours or they will be penalized)
With zero hour contracts more widely used it is clear that there are abuses in the system which need to be addressed.
National Minimum Wage (NMW)
The Low Pay Commission have been asked to consider if the NMW may be able to rise faster than the current conditions allow over the medium term so that workers can benefit from the economic recovery.
In particular they have been asked to consider what labour conditions will need to be in place in the medium term to allow further increases in wages without an adverse impact on jobs.
