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Zero-Hours Contracts: Regulation (P.100/2013) - Amendment

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STATES OF JERSEY

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ZERO-HOURS CONTRACTS: REGULATION (P.100/2013) – AMENDMENT

Lodged au Greffe on 17th September 2013 by the Minister for Social Security

STATES GREFFE

2013   Price code: A  P.100 Amd.

ZERO-HOURS CONTRACTS: REGULATION (P.100/2013) – AMENDMENT

1  PAGE 2 –

After the words "to request" delete the words "the Chief Minister to work with". 2  PAGE 2, PARAGRAPHS (c) AND (d) –

For paragraphs (c) and (d) substitute the following paragraph –

"(c)  subject  to  the  findings  and  conclusions  of  the  investigations

conducted in accordance with paragraphs (a) and (b), and subject to the outcome of consultation with stakeholders, to bring forward for approval such draft legislation as is deemed necessary to restrict any proven misuse of zero-hours contracts."

MINISTER FOR SOCIAL SECURITY

REPORT

The main reasons for this proposed amendment to the Proposition of Deputy G.P. Southern of St. Helier are as follows:

The Minister for Social Security (the Minister') has responsibility for the relevant legislation (the Employment (Jersey) Law 2003) and so, with the agreement of the Chief Minister, the responsibility has been attributed solely to the Minister.

The Statistics Unit is independent of the Chief Minister and there is no requirement for the Chief Minister to have specific oversight of the collection of this data.

Deputy Southern states in his accompanying report that the Proposition asks the Chief Minister to "consider whether regulation is needed, and if so, to bring such regulations". The Proposition in fact asks the Chief Minister to create a regulatory system to control zero-hours contracts, irrespective of whether any need to do so has been established by parts (a) and (b), and irrespective of whether the use of such contracts is genuine. We must identify what the issues are before deciding if, and how, those issues might appropriately be tackled.

Paragraph (c) of Deputy Southern 's Proposition would require the Minister to work with the Jersey Advisory and Conciliation Service (JACS). This would be replaced in the new paragraph (c) with a requirement to consult stakeholders generally. Whilst JACS input will be valuable, other stakeholders would be consulted, including trade unions and employers' associations.

The President of the Jersey Chamber of Commerce and Unite's Regional Officer for Jersey have publicly expressed their opposing perspectives to this Proposition; on the one hand, defending the correct use of such contracts as allowing employers to offer vital jobs[1], and on the other hand, by calling for zero-hours contracts to be abolished[2].

Valid zero-hours contracts remove mutuality of obligation so that work is offered and accepted on a casual basis. Zero-hours contracts have been criticised because of the lack of certainty that they provide to employees but, when used appropriately, such contracts can provide flexibility for both employees and employers.

JACS has cautioned that using a zero-hours contract is unlikely to enable an employer to avoid their obligations under the Employment (Jersey) Law 2003. Even in the case of a genuine zero-hours contract, employees have employment rights, including the right to be paid the minimum wage and receive holiday pay (which is often given as rolled-up holiday pay). Where a zero-hours contract is misused, an Employment Tribunal is likely to see through the written terms of the contract to the reality of the situation.

There is concern in the UK about the increasing use of zero-hours contracts in many areas of the economy. The UK's Office for National Statistics (ONS) has estimated that  the  number  of  people  working  under  a  zero-hours  contract  arrangement  in December 2012 had grown by 100,000 to 250,000 since 20093. Research undertaken by the Chartered Institute of Personnel and Development (CIPD)4 and Unite5 has led to estimates that the actual number may be between one and 5.5 million.

The UK Government is currently reviewing the use of zero-hours contracts and an information-gathering exercise, including consultation with stakeholders, is expected to  conclude  in  September  2013. The outcome  of  that  exercise  is  likely  to be  of relevance to the investigation undertaken in Jersey.

The States of Jersey Statistics Unit intends to investigate issues relating to zero-hours contracts through its suite of business and household surveys. Such work will involve surveying businesses to estimate the overall scale and sectoral distribution of the use of zero-hours contracts in Jersey, and will also aim to measure the proportion of workers engaged on such contracts who were actually employed within a given time period  as  well  as  the  average  numbers  of  hours  worked.  It  is  anticipated  that  a complementary perspective will be gained by also surveying households. Such an approach will aim to examine subjective and practical issues for individuals who are engaged on zero-hours contracts.

The report accompanying the Proposition recognises that it will take some time to achieve statistically significant information. The Chief Statistician anticipates that the timescale for producing statistically robust results is approximately 12 to 15 months, i.e. by the end of the calendar year 2014. Those results will form the basis for us to consider what further action should be taken and in what timeframe.

Financial and manpower implications

The Deputy has stated that there are no financial or manpower implications arising from this Proposition. It is anticipated that an investigation into the extent to which zero-hours contracts are used, as described in paragraph (a), can be contained within departmental resources. An impact study, as described in paragraph (b), however, is expected to be achieved by commissioning independent research. Until the scope of the  impact  study  has  been  more  clearly  defined  and  data  has  been  collected  in accordance with paragraph (a), it is not possible to estimate the cost of paragraph (b). The  proposed  amendment  to  the  Proposition  brings  no  additional  resource implications.

3 www.ons.gov.uk/ons/guide-method/method-quality/specific/labour-market/articles-and- reports/index.html  

4 www.cipd.co.uk/blogs/cipdbloggers/b/mark_beatson/archive/2013/08/22/Zero-hours- working.aspx  

5 www.unitetheunion.org/news/research-uncovers-growing-zero-hour-subclass-of-insecure- employment/  

Related Publications

Propositions

Votes

Vote: Adopted 24 September 2013

Minutes

25th September 2013 25 September 2013

Hansard