UK Zero-Hours Reforms Could Add £8 Million a Day to Business Costs, REC Warns
Updated
Updated · The Global Recruiter · Aug 13
UK Zero-Hours Reforms Could Add £8 Million a Day to Business Costs, REC Warns
3 articles · Updated · The Global Recruiter · Aug 13
Summary
£8 million a day in extra employment costs could hit businesses under the government's proposed zero-hours and similar contract reforms, according to the Recruitment and Employment Confederation's reading of evidence published Thursday.
£2.9 billion in added annual costs would come from guaranteed-hours rules and related compliance burdens, which the REC says the government's assessment still understates.
Neil Carberry said the package ignores fluctuating demand, short-term assignments and agency-labour relationships, while cancellation requirements could make hirers less willing to use temporary staff.
Hospitality, retail and healthcare could be especially exposed, the group said, warning the changes may curb flexibility and worsen youth unemployment rather than improve job security.
The warning lands as the Employment Rights Act 2025 is already being phased in, with further employment-law measures due to take effect from October 2026.
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