Marvin OnumonuThe Employment Rights Bill going through Parliament will be important for low-paid workers but won’t change much for economic growth, research from the Resolution Foundation found.
Low pay has dropped in Britain, with only 3.5% of workers now low paid, down from a fifth in past decades thanks to the minimum wage.
However, the number of workers on zero-hours contracts has gone up, now at 3.4%, about 1.1 million people.
The research found 2.4 million workers across Britain were very anxious about sudden changes in their shifts.
The bill aims to fix these problems, but arguments about its impact on the economy have been exaggerated.
The Government’s highest estimate of a £5bn cost to businesses would mean only 11,000 job losses, cutting the employment rate by just 0.02%.
The Resolution Foundation said this is small, given millions will get new protections at work.
Additionally, the government wants to give workers a right to guaranteed hours based on what they usually work, plus compensation if shifts are cancelled at short notice.
The report suggested these rights should apply to workers with contracts up to 25 hours a week, as those on 21-25 hours are most likely to be anxious about shift changes.
Furthermore, the report called for stronger enforcement and clearer legal boundaries so workers know their rights.
Nye Cominetti, principal economist at the Resolution Foundation, said: “The Employment Rights Bill risks becoming the next legislative battleground as proponents and critics argue over whether it’s good or bad for the economy.
“But this row risks missing the point of the reforms, which is to tackle workers’ anxiety about insecurity at work.
“The Government should focus on making its reforms as effective and focused as possible. With over two million workers anxious about unexpected changes in their shifts, new rights to guaranteed hours and reasonable notice of shifts should extend well beyond those on zero-hours contracts.”
Cominetti added: “Having successfully reduced low pay over recent decades, now is the time to tackle the next workplace scourge of hours of insecurity and anxiety.
“This can be done while retaining Britain’s flexible labour market, offering the chance to improve workers lives without threatening their jobs.”
