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How HR can improve work for zero-hours and gig workers

Research has highlighted a lack of flexibility and fair compensation for zero-hours and gig workers

As employers' use of flexible contracts is on the rise, we asked HR how they can improve work for zero-hours and gig workers.

The pressure group Worker Info Exchange has called on Uber and other ride-hailing apps to publish information on its drivers’ working hours, to prevent exploitation, the Guardian reported yesterday (2 September).

Three quarters of zero-hours workers have experienced difficulty meeting living expenses as they were not offered enough working hours, research by TUC showed last week (30 August). 

“Zero-hours contracts work well when they are a win-win for both employer and employee,” Neil Pickering, senior manager of HR innovation workforce management and HR company UKG, told HR magazine.

“Unfortunately, for many employees zero-hours contracts are often their main source of income and employment, which can leave them vulnerable to risk of redundancy, vast pay variances, and impacted by getting too few or too many hours to manage.”

Three quarters (75%) of employers used some form of flexible contract at some point in 2023, research by the Resolution Foundation found in February, and 48% of those employers planned to increase their use over the next five years.

However the TUC research revealed that 84% of zero-hours workers wanted regular hours of work. More than half (58%) of those workers reported that they had their requests for more hours refused by employers.

The research also highlighted the lack of flexibility for workers under zero-hours contracts, as 52% had shifts cancelled at less than 24 hours notice, while 66% had no compensation for cancelled shifts.


Read more: Three quarters of employers used flexible contracts in 2023


Employers could improve work for gig workers by helping them meet their desired workload, Pickering added.

He continued: “The reality today is that workers expect the organisation that they work for to recognise and control workloads and job demands that exceed human limits. Employers need to help gig workers work smarter, not harder. 

“HR needs to closely monitor workloads against demand while listening to its employees. Using AI to monitor trends and deliver real-time insights can help to improve working conditions and avoid issues like exhaustion, fatigue and burnout.”

Worker Info Exchange claimed that ride-hailing apps’ failure to monitor drivers’ workload meant some drivers drove to the point of exhaustion. It also claimed this meant that drivers missed out on more than £1.2bn in wages due to their employers under-compensating them for time they spent driving or waiting unpaid.

UKG research (2 September) also showed that 60% of frontline shift workers believed they were missing earned pay, while 38% said they were paid late, and 23% claimed they were not receiving pay slips.

An Uber spokesperson told HR magazine: "All drivers in the UK receive worker rights such as a pension and holiday pay, with average earnings topping £30 per hour. Drivers want the choice to work for multiple apps, meaning that when they are not taking trips on Uber they are regularly earning on other apps."

Employers should focus on improving transparency, to ensure gig workers are compensated fairly, Pickering added.


Read more: Royal Mail sued over drivers' gig economy status


He continued: “Clarity is key. If both the employer and employee have greater transparency, visibility and control, it helps to ensure that workers are fairly compensated and have access to sustainable shifts and pay. 

“Technology is a great equaliser here. Access to data insights for the employer will enable businesses to run more efficiently and profitably, and this should result in greater investment in employees. If workers are able to easily access and track shifts – including swapped shifts – they can ensure that they’re fairly paid.”

Speaking to HR magazine for an article published on 27 February, Ian Moore, managing director of consultancy Lodge Court, noted that employers should not differentiate their treatment of workers and employees.

He said: "Adopting flexible approaches to worker benefits and rights, regardless of classification, can not only help mitigate legal risks but also contribute positively to the ethical treatment of all workers.” 

The Labour government has promised it will abolish zero-hours contracts as part of its 'new deal' for working people. TUC general secretary Paul Nowak said that this will “help create a level playing field, and stop good employers from being undercut by bad".