An Andy Burnham-led government would face zero-hours dilemma

Employment lawyers have said that the government’s consultation on reforms to zero-hours contracts and agency worker protections could provide the clearest indication yet of how an Andy Burnham-led government may approach employment law and labour market regulation.

The comments come in the wake of Burnham’s victory in the Makerfield by-election. The Greater Manchester mayor is widely expected to challenge Sir Keir Starmer over the leadership of the Labour party.

According to employment specialists at Constantine Law, a Burnham-led government may signal a more “interventionist” approach to workplace regulation than Starmer. However, this is countered by the fact that he has sought out advice from Andy Haldane, a former Bank of England chief economist; Richard Hughes, a former chair of the Office for Budget Responsibility; and Jim O’Neill, a crossbench peer and former Treasury minister who worked on George Osborne’s Northern Powerhouse.

Constantine Law argues that one of the key challenges facing any future administration would be balancing Labour’s commitment to strengthening workers’ rights with the need to promote economic growth and preserve the flexibility that has long characterised the UK labour market.

Zero hours

It said the most consequential reforms may be around zero hours, which are under consultation until 25 August.

This includes proposals that could reshape workforce flexibility across a range of sectors, including healthcare, retail, hospitality, logistics, and agriculture, including agency work.

The decisions taken on zero-hours reform will tell employers a great deal about the direction of travel under any future Burnham administration” – John Hayes, Constantine Law

John Hayes, managing partner at Constantine Law, said the consultation represented an important test of the government’s policy direction.

“The decisions taken on zero-hours reform will tell employers a great deal about the direction of travel under any future Burnham administration,” he said. “The consultation presents a series of choices that could either preserve labour market flexibility or impose substantial new obligations on employers.”

Issues under consideration include the length of reference periods used to calculate guaranteed hours, eligibility criteria for guaranteed-hours offers, minimum notice periods for shifts, and compensation arrangements when shifts are cancelled or changed at short notice.

Flexibility is key

Hayes argued that labour market flexibility has historically been one of the UK’s economic strengths, helping to maintain lower levels of youth unemployment than many European countries.

He added that concerns about rising numbers of young people not in education, employment or training (Neet) highlighted the importance of maintaining routes into work.

“The interests of employers and workers are often more aligned than political debates suggest,” Hayes said. “Policymakers must be careful not to undermine those opportunities.”

Vital changes

The government says the zero-hours reforms will end one-sided flexibility and help people plan their finances and daily lives. Those who enjoy the benefits of zero-hour work may keep their existing contracts if they wish.

Ministers maintain that the reforms would help save workers in some of the most deprived areas up to £600 in lost income from the hidden costs of insecure work.

Business secretary Peter Kyle said: “It’s not right that people can work regular hours but still have no certainty about their pay from week to week. These vital changes will mean more certainty for millions of people and will save the lowest-paid workers hundreds of pounds.”

 

 

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