LABOUR WILL OUTLAW EXPLOITATIVE ZERO HOUR CONTRACTS

ED Miliband will tomorrow (Tuesday) declare that a One Nation Labour Government will outlaw the exploitative use of zero hour contracts that make life a misery for thousands of families.

In a speech to the TUC in Bournemouth, he will return to his theme of building an economy which works for working people, saying a recovery which benefits only a few at the top is not only unfair but also unstable.

He will set out some of the big reforms Labour will make to create an economy which works for working people including measures to get young people back to work, improve vocational education and create more apprenticeships.

He will say such an economy which works for working people must have security as one of its foundation stones.

Although the flexibility of zero hours contracts can benefit both employers and employees in some circumstances, the increasing use of such contracts has left too many families insecure, and exposed others to the risk of exploitation.

Some employees are forced to be available whenever the employer requires them, even if there is no work. Others are required to work exclusively for one employer, and yet have no guarantee that they will get adequate amounts of work in return.

Still more are on zero hours contracts even though in practice they work regular hours. Ed will say that a Labour Government will outlaw the exploitative use of zero hours contracts. He will propose three specific measures:

• Banning employers from insisting zero-hours workers be available even when there is no guarantee of any work.

• Stopping zero hours contracts that require workers to work exclusively for one business.

• Ending the misuse of zero hours contracts where employees are in practice working regular hours over a sustained period.

Ed will announce that he has asked Norman Pickavance, former Head of Human Resources at Morrisons, to chair an independent consultation with business groups and others on how these measures could work.

In particular, he will investigate a number of options for how to ensure that workers who are actually working regular hours week in week out cannot simply be left on zero hours contracts without their consent.

These include the assumption that workers will move on to a regular contract after a specific period of regular employment.

Mr Pickavance will also work with business to investigate whether other measures should be considered and whether additional legislative steps should be taken.