SCOTLAND has become the UK hotspot for the use of 'exploitative' zero-hours contracts with numbers hitting new record levels despite a government promise to review the use of the controversial practice ten years ago.

New calls have been made for a ban over the continuing rise in insecure jobs in Scotland as it emerged that the numbers on zero-hours contracts has soared to 109,000 this summer - nearly double the numbers recorded in January to March, 2021.

It has emerged that Scotland has the highest percentage of people amongst the four UK nations on the contracts at 4.1%. In England it is 3.6%, in Wales it is 3.2% and in Northern Ireland it is 1.5%.

Critics say that zero-hours contracts create insecurity for workers and are used by employers to undercut wages and avoid holiday pay and pension contributions.

Calls have been made to ban the casual employment contracts which do not oblige employers to provide a minimum number of working hours. They also do not oblige employees to accept any of the hours offered by their employer.

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It is also feared the rise of zero-hours contracts is having an impact on workplace bullying. The relative job security afforded by permanent contracts can make it easier for victims to come forward and lodge complaints.

Without the guarantee of work the next day, freelance and zero-hours workers risk everything when they speak out about mistreatment.

The Herald:

Sasha Josette, drector of campaign group Zero Hours Justice said: "Zero hours contracts are a stain on the economy. They cause anxiety and fear amongst workers leaving them financially insecure and unable to plan their lives with any certainty.

"They are a key factor in the recruitment crisis in the social care, hospitality and service sectors. We acknowledge employment law is reserved but there are steps that the Scottish government can take using its procurement powers to end the use of these contracts. They are bad for workers and bad for business and should be banned.”

In 2013, the Conservative-Liberal Democrat coalition government launched a review of zero-hours contracts because of “a steady rise” nine years ago Vince Cable, the Liberal Democrat business secretary, noted “anecdotal evidence of abuse by certain employers – including in the public sector – of some vulnerable workers at the margins of the labour market”.

At the time, there were 46,000 workers with zero-hours contracts, but this total has mushroomed according to Office for National Statistics data.

Two years ago the group that owns Sports Direct excused its use of zero-hours contracts, calling them “tough decisions that don’t work for everybody”, as it faced an investor rebellion over high pay for its top bosses.

The Herald:

Finance director, Chris Wootton suggested that zero-hours contracts, which Fraser Group - formerly known as Sports Direct International plc - introduced for store workers at House of Fraser and Evans in the previous year, had helped keep those businesses afloat.

“You have to make some tough decisions that don’t work for everybody for the long term benefit of the business,” he said.

In 2016, Sports Direct said that it would offer casual retail staff guaranteed hours instead of zero-hours contracts and ensure all warehouse staff are paid above the National Minimum Wage following a stinging review into working practices at the retailer. But the change is said to have only applied to staff employed directly by Sports Direct. Ninety-four per cent of the 3,200 staff at its much-criticised Shirebrook warehouse that were contracted through agencies were said not to benefit.

Mike Ashley, the firm’s billionaire founder, had told MPs he was unaware that employees could potentially earn less the minimum wage while he admitted around 80% of store workers were on zero-hours contracts.

However, a law firm report said he took "ultimate responsibility for any aspects of the working practices that were unsatisfactory”.

Sports Direct hired law firm RPC to review employee procedures and corporate governance after coming in for a raft of criticism from politicians and unions for paying workers less than the minimum wage and implementing “Victorian workhouse” conditions at its Shirebrook warehouse.

Sports Direct said that it would also suspend its “six strikes and you’re out” disciplinary procedure and pledged to pay warehouse staff above the National Minimum Wage.

Zero Hours Justice, a non party political campaign that aims at regulating fair working practises in the UK, launched an accreditation scheme in Scotland earlier this year to promote employers who do not use zero hours contracts or use them in a more "ethical and responsible way".

They say that the contracts are "exploitative and unnecessary", leaving workers uncertain of how many hours they may be employed for, how much they will be paid and how they plan their lives.