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Zero-hours ‘vital’ in small enterprises, say business leaders

Zero-hours contracts are “absolutely vital” to long-term business success, a group of small businesses have said.

At a roundtable event, organised by workforce management solutions firm Kronos, small business owners defended their use of the controversial contracts.

Rob Hogan, managing director at market research firm Teamsearch, said: "We have 90% of staff on zero-hours contracts.

"We know our workers prefer these flexible type of contracts and, to be honest, without them we would sink."

David Knowles-Leak, the Thames Valley regional chairman of the Federation of Small Businesses, was "surprised at talk of banning the contracts", but said they must not be used for "exploitation".

The comments come a week before the Government's consultation on zero-hours contracts is expected to open.

Pam Sidhu, employment law expert at The Wilkes Partnership, said she doesn't think the consultation will result in significant changes.

"There is currently no legal provision that prohibits the use of zero-hour contracts and it is doubtful this Government consultation will result in significant changes to the current position.

"It is extremely unlikely to ban zero-hours contracts entirely, as the use of these contracts can be justified in industries where business demand is unpredictable, such as hospitality where 'casual workers' have been used for many years."

Sidhu said the consultation might have some recommendations for employers, including the removal of clauses that require a worker to work exclusively for one business.

In August, the CIPD published research that claimed there are currently more than one million workers in the UK on zero-hours contracts.