Zero-hours reforms risk higher costs and job losses, CIPD warns

Proposed reforms to zero and short-hours contracts could increase employment costs and push employers towards greater use of temporary and self-employed workers, the CIPD has warned.

The organisation issued the warning as the Government’s consultation on the reforms closed earlier this week, calling for tripartite talks between government, employer bodies and trade unions to make the proposals more workable.

A CIPD survey of employers using zero-hours contracts found that 65% expect their HR and management costs to rise as a result of the reforms.

Almost a third (31%) expect to make redundancies, while 33% anticipate relying more heavily on self-employed contractors, temporary staff or casual workers.

The CIPD warned that the changes could particularly affect young people and students who rely on flexible employment.

Around 479,000 people aged 16 to 24 are currently on zero-hours contracts, including 250,000 students who use them to balance employment with their studies.

CIPD research found that 89% of people on zero-hours contracts said the arrangement suited them well, while 18% wanted more hours in their existing job and 7% wanted a different job offering longer hours.

The Government’s reforms are intended to address “one-sided flexibility” and give people working zero or short hours greater rights to predictable working patterns.