Under capacity in UK industry leads to 19% rise in zero-hour contracts

The number of zero-hour contracts rose significantly almost by 20 percent this year when compared with data from 2014.

Many employers seem to have cut back not only salaries to workers but also deprived them of favorable working conditions. Workers on zero-hour contracts account for 2.4 percent of the total workforce of 31million in the UK.

The increasing number of workers on zero-hour contracts also indicates that many major companies are operating under capacities even after the seven years since 2008 economic crisis. 

According to the latest data from Office of National Statistics (ONS), the number of contracts involving without cap on working hours rose to 744,000 registering 19 percent growth from 624,000 in 2014. 

Workers with zero-hour contracts are mostly with larger firms than small units. Hotels and leisure sectors are employing workers on zero-hour contracts in huge numbers followed by education and health industries. The care industry and universities have also employed workers on zero-hour contracts in a good number. 

Trade and labor unions are opposing contract system with zero-hours and demanding the UK government to ban it. Contract on zero-hours don't offer any guaranteed work during a week, but a sense of flexibility to not only employers, but also workers as well. Workers would be informed just before few hours when they need to report for work. 

Majority of workers on zero-hour contract accounts for women, youngsters and older age groups. Interestingly as ONS data reveals, about 40 percent of workers on zero-hour contracts are willing to work more number of hours than they supposed to or offered to work.

This is also suggesting many employers are still operating below their production capacity even after seven years since financial crash in 2008, finds ONS data. 

Zero-hour contract means there wouldn't be any obligation for employers to work or for workers to accept it. In most of the cases, zero-hour contracts provide staff 'worker' status in employment registers 

The new regulation in the UK also restricts employers from implementing exclusivity clauses in zero-hour contracts. 

Accommodation and food sectors accounted for more number of workers on zero-hour contracts and also these sectors witnessed a maximum drop in the number of workers this year as well. As per the ONS data, accommodation and food sectors accounted for 45 percent of workers on zero-hour contracts in 2014 and it dropped to about 38 percent in 2015.

Education sector recorded maximum rise in number of workers on zero-hour contract as it rose close to 25 percent in 2015 from 15 percent in 2014. 

Transport, arts and other services sectors accounted for approximately 12 percent and it remained at the same level in 2015 as well. Administration and support services, production and agriculture, construction, wholesale and retail, information, finance, professional and public administration sectors accounted for less than 10 percent of workers on zero-hour contracts.