The UK government has recently opened a consultation on the future of zero-hour contracts, a decision with potentially far-reaching consequences for many sectors, especially the promotional marketing industry. Many IPM members rely on zero-hour contracts to staff fluctuating campaign demands, providing essential flexibility. For workers—including students, part-timers, and freelancers—these contracts offer the freedom to work across multiple agencies. During this period, it’s crucial to consider how these contracts can meet the needs of both businesses and workers. This article explores the potential implications, offers critical insights, and encourages active participation to collectively shape how these changes are implemented, ensuring they work for everyone—businesses, agencies, and the workers who make our campaigns possible.
What is a Zero-Hour Contract?
Zero-hour contracts are agreements where employers are not obligated to offer a minimum number of working hours, and workers, in turn, are not required to accept the work offered. These contracts provide critical flexibility, particularly for students, parents, freelancers, and those balancing other commitments to work around their schedules, accommodating studies, family responsibilities, or other part-time work. For employers, it provides the ability to quickly adapt to fluctuating business needs without the burden of fixed staffing costs. This type of contract first entered the public debate in 2013, when industries needed a workforce that could adapt quickly to changing demands—particularly in sectors like hospitality, retail, and promotional marketing.
Flexibility vs. Fairness: The Debate
A pro-worker, pro-business economy demands genuine, two-sided flexibility for both employers and employees. The problem to date has been that this flexibility has too often gone one way. Through the Employment Rights Bill, the government aims to fulfil its pledge to end exploitative zero-hour contracts. It is proposed that this type of contract does not offer the worker any form of certainty as to their earnings, making it difficult to apply for credit or a mortgage, to rent a flat, to plan for major events like weddings or holidays. Flexible hours of work can benefit both workers and employers, but without proper safeguards, this flexibility can be one-sided.
A pro-worker, pro-business economy demands genuine, two-sided flexibility for both employers and employees. The problem to date has been that this flexibility has too often gone one way.
Rt Hon Jonathan Reynolds MP, Secretary of State for Business and Trade
Too many people are drawn into a race to the bottom, denied the security they need to raise a family while businesses are unable to retain the workers they need to grow. We’re raising the floor on rights at work to deliver a stronger, fairer and brighter future of work for Britain.
Deputy Prime Minister Angela Rayner
The Impact on Promotional Marketing
Promotional marketing—especially experiential campaigns and live activations—relies heavily on the ability to quickly scale staffing up or down based on client demands, campaign types, and specific locations. Zero-hour contracts have been instrumental in providing the workforce flexibility needed for these unpredictable scenarios, enabling agencies to meet diverse client needs efficiently. The flexibility of zero-hour contracts benefits not only businesses but also workers—many of whom are students, freelancers, or part-time professionals looking for dynamic and short-term opportunities.
Our initial conversations with members have shown that these changes could significantly impact how some businesses operate. Without the option for zero-hour contracts, the promotional marketing industry may struggle to meet client demands and maintain the high level of agility required to succeed in an environment where staffing needs shift rapidly. The banning of such contracts could place significant strain on the workforce and the industry as a whole, potentially leading to decreased employment opportunities and a reduction in the industry’s economic contribution.
IPM General Manager Emma Kirk
Challenges in Implementing Reforms
Agency work is inherently unpredictable, with workers frequently choosing this type of employment precisely for the flexibility it offers, allowing them to fit work around other commitments. However, the proposed reforms—such as guaranteed hours—would not only limit workers’ freedom to choose when to work but also hinder agencies’ ability to respond swiftly to campaign demands. Striking a balance between flexibility and stability is crucial for ensuring the industry can continue to flourish while offering fair conditions for all involved.
A key complexity in the promotional marketing sector is the tripartite relationship between agencies, workers, and end clients. With the proposed reforms, questions arise about who should be responsible for offering guaranteed hours or providing reasonable notice of shifts—should it be the agency, the end hirer, or both?
Why Industry Voices Matter
The Employment Rights Bill presents a pivotal moment for sectors like ours that depend on agile staffing solutions. Now is the time for us to collectively shape how these changes are implemented, ensuring they work for everyone—businesses, agencies, and the workers who make our campaigns possible.
The IPM is actively gathering vital input from across the industry to present a well-rounded response to the government consultation. We need real-life examples, data on economic impact, and ideas for how to protect workers without losing the adaptability that our work demands. Your insights could be the key to ensuring the new measures support our industry.
Join the conversation and help shape the future of work in our industry by completing the feedback form via the link below. The deadline for submissions is Friday, 15th November 2024, at 4 pm.
