Zero-hours contract policies should also consider employer’s market power, committee suggests

The Government’s consultation over zero-hour contracts should also take into account the employer’s market power, the Regulatory Policy Committee (RPC) has argued, as part of its recommendations regarding the regulations in this sector, a news report in the HR media has revealed.

The Regulatory Policy Committee (RPC) is an independent body set up by the Government to scrutinise evidence for regulations. After evaluating the Government’s zero-hours employment contracts impact assessment, the RPC found it to be fit for purpose, but nevertheless highlighted three areas where members felt the Government should provide further information or consider extra details.

First of all, the RPC’s report pointed out that the assessment had failed to consider the market power of employers over employees as a reason for Government intervention. It also suggested the Government should have provided more data about the distribution of zero-hours contracts used by the private and public sector.

Last, but certainly not least, the RPC suggested that before the Government could make a decision on whether to introduce legislation around zero-hours contracts it should provide estimates of the proposed impacts.

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