Hiring managers remain undecided as to whether the Labour government’s proposal to ban zero-hours contracts is a good thing for business, the economy and workers. That’s because every business and worker have a unique situation and salary band to determine whether a zero-hours contract is right for their circumstance.
The high level of uncertainty was revealed in a survey of 400 business leaders, including hiring managers and those responsible for HR.
The report found that almost a quarter (23 per cent) of these decision-makers actively opposed the government’s move, while a further 23 per cent did not express an opinion either way.
Carried out by recruitment site Indeed Flex, the findings revealed that of those who said they were against the ban, more than two-thirds (68 per cent) were concerned that it would reduce flexibility for both employers and workers.
More than half (54 per cent) of UK managers responsible for HR and recruitment however support the government’s proposed ban on zero-hours contracts.
That means most businesses find zero-hours contracts “one-sided” and “exploitative”. This majority would prefer employees including fixed-term and temp agency workers have the right to a contract that “reflects the number of hours they regularly work, based on a 12-week reference period”.
But what if as a freelancer you work ad-hoc with a client as and when they need your services? There’s nothing “regular” about it.
Hiring companies changing their stance
When business leaders were asked how a ban on zero-hours contracts would impact their staffing arrangements, more than a quarter (26 per cent) said their staffing model wouldn’t be affected. However, another 23 per cent said they would increase their use of fixed-term contracts as a result, while more than one in five (22 per cent) said they would offer more part-time permanent positions, and 21 per cent would hire more full-time permanent staff.
Op-Ed
Where does that leave freelancers? With fewer opportunities.
The plan, which will be implemented through the Employment Rights bill, will not prevent employers from offering fixed-term contracts, including seasonal work. But truly independent workers are no longer independent on fixed-term contracts since they will be deemed PAYE employees of the hiring company or agency. Will the ban on zero-hours contracts inhibit freelancer opportunities? It’s starting to look that way. Let’s just hope for the economy’s sake that theumbrella company fraud, HMRC vs PPS, payroll services dispute, unpaid NICs, contractor payroll, labor supply fraud, locum workers, PPS Umbrella Company Ltd, David-Ajibola Adeola Olabode, high court case Labour Party realises this before it’s too late.
Here’s how freelancers can prepare:
- Strengthen your value proposition: Focus on developing your skills and expertise to stand out from the competition. Clearly communicate your unique selling points and the value you bring to clients.
- Diversify your client base: Don’t rely on a single industry or a few clients. Aim to build a diverse portfolio of clients across different sectors to reduce your risk.
- Adapt your contract templates: Ensure your contracts are clear, and comprehensive, and protect your interests. Consider incorporating longer-term project options or retainers to provide more stability.
- Market your services effectively: Actively promote your skills and expertise through various channels, such as online platforms, social media, and networking events. If you see opportunities for clients let them know and see how you might be able to create a bespoke project to their advantage (and yours).
- Build strong client relationships: Focus on delivering high-quality work and providing excellent customer service to encourage repeat business and referrals. Offer discounts in the run-up to some of your less busy periods of the year to lock in business.
