Television talent shows such as The X Factor are "exploiting and humiliating" their contestants by making them work for no pay, the performers' union Equity said yesterday.

Production companies which make the shows generate huge profits from the cheap exploitation of vulnerable people desperate to break into the entertainment industry, the union said.

Equity said a loophole in minimum wage legislation means contestants on reality talent shows are not classed as workers, and have no employment rights.

The X Factor returns to ITV1 on Saturday, and Equity wants all contestants who reach the final round to be paid and to have legal status as workers with proper employment rights.

The union is to table a motion at next month's TUC conference calling on TV companies to pay talent show contestants.

The motion will read: "The contestants in such programmes are often compelled to enter into restrictive contracts and because of a loophole in the National Minimum Wage Act for competitions they generally do not get paid. These programmes may be very popular with the public but are based on exploitation and humiliation of vulnerable people, which cannot be acceptable."

The union called on independent production companies such as Talkback Thames, the makers of The X Factor, to follow the example of the BBC, which paid contestants in the final rounds of talent shows How Do You Solve A Problem Like Maria?, Any Dream Will Do and I'd Do Anything at Equity rates.

Talkback Thames, which also makes Britain's Got Talent, said the shows gave people the chance to showcase their talents and potentially transform their lives.

"Britain's Got Talent and The X Factor are talent competitions," the company said. "They are not employment in their own right and therefore Equity rates do not apply.

"Contestants chose to enter to compete for a substantial prize - a cash prize of £100,000 and a performance on the Royal Variety Show for Britain's Got Talent and a recording contract worth £1,000,000 on The X Factor."

The X Factor has reviewed the way it handles contestants in the light of Susan Boyle's collapse and admission to a private clinic following her appearance in the final of Britain's Got Talent earlier this year. Contestants in the later stages of the show will now undergo psychological testing to check their fitness to take part.