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They don't need to restructure, they just need to put together a different contract for new hires
I'm not convinced by this tbh. Wait until you hear how much it costs a business to get 3 directors around a table for 20 minutes. Point being organisational level things like employment modes are more difficult to change than just starting to offer different ones. They feed into structural, operational things like rotas, scheduling, resourcing, and all come with administrative overheads. To state otherwise seems naive.
Any point claiming that businesses will be using zero hours as some sort of stick to beat the labour market back with also seems a bit moot until we know more about planned reform. It's a key bit of policy for Starmer's Labour. They said they will regulate that option out of existence (if they dont back out or water it down. Who knows)
If they dont, I'm not sure that actually changes much. My reading of it is that most industries that would be most likely be able to move to exploitative zero hour modes already have or are already on that trajectory.
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To state otherwise seems naive.
All I've said is that that some businesses may move to zero-hours contracts, and that's a risk. That's hardly a categorical statement, and given the direction of employment contracts in the last few decades it's fairly warranted. You've already mentioned sharks taking advantage of it, so in your own words there's clearly potential for some businesses to do this.
Any point claiming that businesses will be using zero hours as some sort of stick to beat the labour market back with
That's also not what I said?
It's a key bit of policy for Starmer's Labour. They said they will regulate that option out of existence (if they dont back out or water it down. Who knows)
Well that was my entire point, that I hope it will be resolved in the employment rights bill.
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Wait until you hear how much it costs a business to get 3 directors around a table for 20 minutes.
This costs lots, but wait until you hear how many businesses don't have 3 directors, or if they do they're already down the pub round a table together every Friday.
I think you both have decent points but from different experiences of employment and employers.
slippers
snottyotter
They don't need to restructure, they just need to put together a different contract for new hires — they won't be able to flip this into an immediate decrease in wages and change of contracts for current employees, the effect will be over time. I mean, you can find templates for zero-hours contracts online, thousands of small businesses do this, so it's not exactly complicated.
Don't make me laugh. The wage/profit share of GDP has been shrinking for longer than I've lived, and competition didn't seem to do much about that. If you're talking about middle class salaried desk jobs in major cities you might have a point — they'll not be the ones transitioning to zero-hours contracts. Those companies' wage bills will still go up though, and they'll be looking at how to cover it by tightening belts.
Edit: sorry, didn't see your edit —
The new minimum threshold is 5k, rather than 9.1k, so the calculation will be:
(34000-5000)*0.15 = £4,350 (per year, but remember this is also per employee)