UKHospitality is urging operators in the sector to make their voices heard in the UK Government’s consultation on changes to zero hours contracts and shifts under the Employment Rights Act.
The live consultation is seeking views on proposals that will oblige businesses to offer guaranteed hours contracts to eligible employees on zero hours contracts, provide reasonable notice of shift patterns and introduce compensation for cancelled or changed shifts.
The organisation says it will be making clear that it believes the proposals as they stand will act as a barrier to the number of jobs and hours offered by hospitality businesses. This risks increasing job instability, as opposed to the UK Government’s stated aims of providing more certainty for employees, says UKHospitality.
It added that given the “extreme financial pressure” facing hospitality businesses and the “increased and costly administrative burden” from the proposed changes, implementation should not commence before October 2028.
The threshold at which a worker is eligible for guaranteed hours contracts should be set at eight hours per week or fewer, to genuinely reflect low hours, says UKHospitality.
To be eligible, workers must work regularly – at least 10 out of every 12 weeks and at least 20% more than their contracted hours, it added.
And it is calling for the reference period for guaranteed hours to be sufficiently long enough to account for seasonal trading, set at either at 26 or 52 weeks.
It is urging hospitality operators to respond to the consultation ahead of the deadline on Tuesday 25 August.
Allen Simpson, Chief Executive of UKHospitality, said:
“One of hospitality’s defining qualities is its ability to offer anyone the opportunity to work, regardless of their background, qualifications or circumstances.
“There are many significant changes to employment law as part of the Employment Rights Act but how zero hours contracts and shifts will be managed in the future is undoubtedly one of the most significant.
“If Government does not get this right, it risks creating barriers to employment, particularly for young people, and restricting the ability of businesses to adapt to their customers’ needs.
“UKHospitality has been undertaking an extensive consultation with its members to ensure that our response is reflective of the entire hospitality sector, but it’s critical the Government hears from individual operators, too.
“I would encourage all operators to respond to this important consultation to make their voice heard.”
