Labour's Zero-Hours Contract Crackdown Could Cost UK Businesses £2.9 Billion Annually

New official analysis reveals that Labour's planned overhaul of zero-hours contracts could cost UK businesses up to £2.9 billion annually. The proposed employment rights bill intends to empower workers to demand a contract that aligns with their usual working hours, provided they have been employed for at least 12 weeks.

The Department for Business and Trade's regulatory impact assessment details the potential financial implications for companies if the legislation is enacted. Labour asserts that the reforms are crucial to ending what it terms 'one-sided flexibility' inherent in current zero-hours arrangements.

Under the proposed changes, workers would gain the right to request and be offered a contract that reflects the average number of hours they have worked over a 12-week period. This measure seeks to provide greater stability and predictability for individuals currently on zero-hours agreements, which have been widely criticised for precarity. Businesses would be required to justify any refusal to grant such a request.