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POLITICS · AUG 22, 2026

Trade Unions and Business Groups Clash Over Zero-Hours Reforms

Trade unions warn the UK government that proposed zero-hours contract reforms may include loopholes that violate Labour Party manifesto pledges.

Trade unions and business organizations are locked in a dispute over the UK government's proposed reforms to zero-hours contracts. Union leaders from the TUC, GMB, Unite, and Usdaw argue that a consultation document suggesting a regularity requirement and an upper hours threshold would create loopholes, excluding many workers from guaranteed hours and violating the Labour Party's manifesto pledge.

Jonathan Reynolds, the Business Secretary appointed following a reshuffle by Andy Burnham, is currently finalizing the policy details before the consultation closes next week. The government has stated its commitment to ending exploitative contracts to improve income security for workers.

Business groups, including the British Chambers of Commerce, have countered these efforts, describing the reforms as a significant blow to firms. They cite government estimates suggesting the most expansive version of the policy could cost companies up to £2.9bn annually. In response, the Trades Union Congress has dismissed these warnings as scaremongering, emphasizing the financial toll that job insecurity imposes on workers.


Reported across 2 outlets
Actors
Andy BurnhamTrades Union CongressGMBBritish Chambers of Commerce

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