Leading recruiter reacts to plans for zero hour contract ban

As the new Labour government has indicated that new rules on zero hour contracts will be introduced soon, one of the UK’s leading HR and recruitment agencies, Gi Group, is recognising the importance of choice and setting the bar for ethical, sustainable and mutually beneficial temporary and flexible work.

In response to the new government’s proposals to limit the use of zero-hours contracts and ban those that are considered to be ‘exploitative’, Gi Group – which supports small, medium and large businesses across the UK with a range of recruitment needs – is drawing attention to the benefits of well managed zero-hours agreements, for both employees and employers.

Pete Taylor, Managing Director at Gi Group, said: “This new approach seems to indicate that employees will have the choice to opt to stay on zero hours, which we welcome – as it will maintain the choice for flexibility preferred by some workers and will support small businesses who have, for example, seasonal or peak periods of activity best served by temporary workers.

“The path to this newly proposed legislation has been quite confusing, for candidates and customers alike, as Labour originally stated it sought to ban all zero hours contracts. We know from our vast database of candidates and customers that this would not have been welcome across the board and could have had adverse impacts for some temporary workers and particularly for small businesses.

“However, the decision to focus on eliminating ‘exploitative’ zero hours contracts is obviously a sensible one – we just question how the government proposes to define and implement the identification of ‘exploitative’ contracts and whether there is a methodology behind which contracts class as unacceptable and which are judged to be non-exploitative. It’s a very complex question.”

It’s estimated that around one million workers are currently on zero-hour contracts across the UK, spanning across various industries and job roles.

Pete added: “We are relieved to see that zero-hour contracts have not been completely abolished by the new government as of yet, as this could have a huge, and in some cases detrimental, impact on both employees and employers.

“As a recruiter, we foresaw both the external and internal impact that it could bring, depending upon the specific legislation implemented. Not only do we source talent into temporary flexible contracts but we also have valuable members of our own team who benefit from the flexibility that zero-hour contracts provide.

“There is a strong appetite for temporary and flexible positions for various reasons, with many people who actively seek and opt for such work. Taking the option of choice away from individuals would be, we predict, broadly unpopular move from the government.”

While the suggested revised plan avoids an outright ban, the limitations are expected to still impact organisations and businesses will need to find new ways of working in order to remain compliant with UK employment law, Pete explained – all against a turbulent backdrop of a post-Brexit, post-Pandemic and economically volatile recruitment market.

“While these new changes come into play, its important for businesses to pay close attention to policy details. We pride ourselves on our employment practices at Gi Group, and plan to continue to lead the way by working closely with both our clients and customers to match required, business-crucial temporary and contract staff with the right roles for them.”

Resource Management Specialist, Jan Stroud, has spoken out about her personal experience within Gi Group as someone who relies on the flexibility a zero-hour contract brings.

Jan said: “When I was diagnosed with Multiple Sclerosis (MS) I had to give up a successful career in the financial industry due to my symptoms. Not working had a negative impact on my mental wellbeing, so when I was contacted by Gi Group to help in its driving division, I jumped at the opportunity.

“Since my diagnosis I’ve learnt to manage my MS systems and everyone I work with is fully aware of my condition and have been incredibly accommodating to allow me the flexibility to work around the restrictions of my illness. I am able to work from home and go into the office if I feel well enough and my part time hours contract means I can work around medical appointments. Without this flexibility, I simply wouldn’t be able to work and so I am truly grateful for that choice.”

Gi Group UK is headquartered in Chesterfield in the Midlands. The business employs close to 500 people and in 2024 is proud to serve almost 1500 clients from 87 locations (26 branches and 61 sites). Gi Group UK is uniquely committed to the creation of social and economic value for both employers and candidates alike. Gi Group Holding in the UK places one person in work every 90 seconds.

For more information about Gi Group in the UK, please visit: uk.gigroup.com.