Unions warn Labour's zero-hours contract plan may breach manifesto promise

British trade unions are warning Labour that its strategy to eliminate exploitative zero-hours contracts may not fulfil the party’s manifesto commitment. Leaders from Usdaw, GMB and Unite highlighted that the consultation paper restricts eligibility for guaranteed-hours contracts, risking loopholes that could exclude many workers. They have called on Business Secretary Jonathan Reynolds to guarantee universal coverage, including full-time staff.

Business organisations, such as the British Chambers of Commerce, warned the most expansive version of the plan could cost firms up to £2.9 bn annually, a figure the TUC says assumes no employer adaptation. The Employment Rights Act, already law, will see the zero-hours reforms take effect next year, but details remain unsettled. With the consultation deadline approaching, the policy will be an early test for Reynolds after his recent return to the business secretary role.