There is much enthusiasm about the Skill England charter introduced by the new Labour Government. The Kingโs Speech outlined the changes at the State Opening of the Parliament after the recent general election. This sends important signals of change to come for the UK skills base under new Government, says NCUB. Changes are also welcomed to The Employment Rights Bill which will end unfair zero-hours contracts within the coming 100 days promising more financial stability for millions of UK workers…
Dr Joe Marshall, Chief Executive of the National Centre for Universities and Business (NCUB), said: โWe warmly welcome the news, revealed in the Kingโs Speech, that the Government will introduce Skills England. This will bring together business and training providers. We particularly celebrate that partnerships with employers will be at the heart of this new body.โ
Marshall continued: โWe also welcome the news that the Government is taking the bold step to reform the Apprenticeship Levy. As always, the devil will lie in the detail, but the aim to have a more flexible Levy than in the past is very welcome. The nationโs businesses are dealing with an acute and severe skills crisis. Skills gaps and vacancies have been persistently high at around 1 million, yet businesses face barriers to upskilling their staff and accessing new talent. We have long argued that it is vital companies are able to make full use of their Apprenticeship Levy funds for broader use, to increase the skills of their workforce.
The Government is delivering on their promise of โchangeโ here. We hope that a more flexible Levy will meet business needs by expanding the variety of high-quality training available to young people and adults, and look forward to contributing to its design. Workerโs rights really were at the heart of the legislative programme outlined at the State Opening of Parliament.
How will zero-hour contracts be affected
Data shows zero-hour contract employment is overwhelmingly dominated by 16-24 year olds, making them the so-called โshift-working generationโ. 10.5% of this age group are on zero-hour contracts, making them over five times more likely than adults aged 35-49 to be in this type of employment.
Skills shortages are partly generated by the practice of not paying workers for training time on their zero-hours contracts.
Some of these employees are likely students, who are unable to commit to a rigid work schedule due to study obligations; zero-hour contracts are therefore ideal for them.
Similarly, those aged 65 and over have the second highest percentage of people on zero-hour contracts (5%). Many people of this age group are retired from their full-time jobs and prefer to participate in flexible jobs without a strict schedule.
The rules coming into effect banning zero-hour contracts may adversely affect students and those over the age of 65 who prefer non-committal jobs to make a bit of extra money or stay busy.
Which industries will be most affected by the changes to zero-hours contracts?
The accommodation & food industry currently has the highest proportion of people working on zero-hour contracts (27%) followed by health and social work (18%).
Transport, the arts and other service industries come in third, with 19% in employment on zero-hour contracts. With these types of contracts set to be banned, these will therefore be the industries most affected.
| Industry | Total in employment on zero-hour contract | Percentage of people in employment on zero-hour contracts. |
| Production, including agriculture | 36,000 | 3.5 |
| Construction | ,000 | 4 |
| Wholesale and retail | 88,000 | 8.5 |
| Accommodation and food | 279,000 | 27 |
| Information, finance, professional | 41,000 | 4 |
| Admin and support services | 63,000 | 6.1 |
| Public admin | 26,000 | 2.5 |
| Education | 69,000 | 6.7 |
| Health and social work | 187,000 | 18.1 |
| Transport, arts, other services | 196,000 | 19 |
According to Gov.uk data[2], Londonโs world-leading hospitality sector is worth ยฃ46bn as of Jan 2024, so itโs no wonder it is one of the UKโs hotspots for zero-hour contracts. The accommodation and food industry relies on zero-hour contracts to stay agile and reactive to cost of living and customer behaviours, however this is often at the expense of its employees who have to battle with irregular wages.
How can businesses prepare for non-zero-hours working practices
Andy Elder, Uswitch business insurance expert, gives his advice for businesses preparing to operate without zero-hour contracts:
โBusinesses preparing for a world without zero-hour contracts must prioritise flexibility through strategic workforce planning. This involves investing in employee training, fostering a culture of adaptability, and leveraging technology to optimise scheduling.
โBy creating clear, predictable work patterns and engaging in transparent communication, companies can maintain operational efficiency and employee satisfaction without relying on zero-hour contractsโ.
He has also given his advice for business owners in the meantime on how to protect both the physical and mental wellbeing of their employees on zero-hour contracts, or working shifts:
โZero-hour contracts may become a thing of the past in the coming years, but in the meantime itโs important you protect the physical and mental wellbeing of employees on zero-hour contracts. This requires a varied approach that addresses the unique challenges these contracts present. Here are some strategies a business owner can implement:
Safe Working Environment
To ensure a safe working environment, all workplace safety standards must be met and regularly reviewed. It is important to provide personal protective equipment (PPE) where required and ensure all employees know how to use it properly. Regular assessments of workspaces should be conducted to prevent injury, especially for roles involving repetitive tasks or heavy lifting.
Training and Education
Comprehensive safety training and refreshers should be offered to all employees. Additionally, health awareness programs should educate employees on maintaining their physical health, including nutrition, exercise, and managing fatigue.
Flexible Scheduling
More predictable scheduling should be provided to help employees balance work and personal life. Adequate breaks must be ensured so that employees do not work excessive hours without rest.
Health Benefits
Consider offering access to healthcare services or benefits, even if not required by law. Provide a clear policy on sick leave and encourage employees to take time off when ill.
Mental Wellbeing
Foster a culture of open communication where employees feel comfortable discussing their concerns. Implement an Employee Assistance Program (EAP) to offer counselling and support.
Job Security and Fair Treatment
Clearly communicate policies and any changes to contracts or work expectations. Ensure zero-hour workers are treated fairly and equitably in comparison to full-time employees.
Training and Development
Offer training and development opportunities to help employees grow and advance. Regularly provide constructive feedback and recognise employeesโ contributions.
Work-Life Balance
Allow employees to take mental health days when needed and monitor workloads to prevent burnout.
Community and Inclusion
Organise regular team-building activities to create a sense of belonging. Promote an inclusive culture where every employee feels valued and part of the team.
Practical Steps for Implementation
To effectively support zero-hour contract employees, here are some easy steps business owners can take immediately:
- Schedule regular check-ins to understand employeesโ needs and concerns.
- Conduct anonymous surveys to gather feedback on their well-being and solicit suggestions for improvement.
- Regularly review and update policies to ensure they meet employee needs.
- Partner with local health services to provide resources and support for physical and mental health.
- Train managers to recognise signs of stress and burnout, and equip them with the tools necessary to support their teams effectively.
