A crackdown on zero-hours contracts could cost firms up to £2.9m a year, according to government analysis of its own upcoming employment reforms. The reforms have drawn widespread backlash, particularly from the hospitality and retail sectors, which will be most affected. Many companies use zero-hours contracts as a method of staffing quickly when demand requires it.
Workers will also be impacted in multiple ways. Some prefer the flexibility of zero hours, while others will welcome the guaranteed hours the reforms will introduce.
Dave Lee, CEO of Planday*, believes the ongoing fallout means companies must place a greater focus on workforce scheduling to better manage staffing levels:
“Hospitality organisations are operating on razor-thin margins, and reforms that reduce their flexibility to staff quickly in response to changing demand will feel like a blow. For some workers, zero-hours contracts also provide valuable flexibility to balance work with other responsibilities.
“The changes will put greater emphasis on predictability and transparency in workforce scheduling. That means publishing rotas further in advance, understanding employee availability and shift preferences, while also giving workers straightforward ways to manage or swap shifts.”
*Planday is a workforce management platform that helps shift-based businesses manage staff scheduling, time tracking, absence and employee information in one system. It also gives employees a mobile app to view rotas, swap shifts and receive schedule updates, while helping managers keep staffing and payroll data aligned.
