Non-Guaranteed Hours May Command Higher Minimum Wage
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Companies that want to employ people on zero hours contracts could face a hike in the minimum wage rate, the author of a review into modern working practices has proposed.
A former advisor to Tony Blair, Matthew Taylor told the FT that a premium could discourage “lazy employers” from forcing workers to accept risk once shouldered by business. “The problem in the labour market is not security of work, it’s security of income,” he said.
Taylor was commissioned by Theresa May in October last year to lead the Independent Review of Employment Practices in the Modern Economy, which reports this summer.
He believes that if employers had to pay a premium on “non-guaranteed” hours, they would be incentivised to promise more hours in advance.
What does this mean for employers?
Companies that want to employ people on zero hours contracts could face a hike in the minimum wage rate. Matthew Taylor admits that this could create confusion in the currently straightforward minimum wage – however it would serve to discourage zero hours contracts which are already showing a slow down since the highest increase shown at the end of 2016.