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Zero-hour employees earn £300 less than permanent


People on zero hour contracts in their place of employment end up earning £300 less per week than permanent employees, a new report has shown.
The report, carried out by the Trades Union Congress (TUC), showed the average weekly earnings for zero-hour workers is £188, compared with £479 for permanent staff, even when doing the same or similar jobs.

The report also showed that zero-hour workers are five times more likely not to qualify statutory sick pay as a result of their lower level of take home pay. Two fifths of zero-hour employees earn less than the qualifying threshold for statutory sick pay (£111), compared to 1 in 12 permanent employees.
The Office of National Statistics (ONS) estimates that there are 1.4 million employees in the UK on contracts with no minimum guaranteed hours. The TUC carried out the report to draw attention to the millions of people “trapped” on low pay and insecure work.

TUC general secretary Frances O'Grady said:
"The growth of zero-hours contracts, along with other forms of precarious employment, is one of the main reasons why working people have seen their living standards worsen significantly in recent years.

"It is shocking that so many workers employed on these kind of contracts are on poverty pay and miss out on things that most of us take for granted like sick pay.

"While it is good to see employment is rising, if the UK doesn't create more well-paid jobs with regular hours we will continue to have a two-tier workforce where many people are stuck in working poverty.

"The increase in casual labour also helps explain why income tax revenues are falling which is not only bad for our public finances but for society too. The lack of regular hours and income makes it difficult for households to pay bills and take on financial commitments such as rents and mortgages."

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