The use of zero-hours contracts by employers harks back to the hiring fair, Mandate union general secretary John Douglas has said.

The Cabinet on Wednesday approved draft legislative proposals from the Minister for Jobs Mary Mitchell O’Connor that would address zero-hours contracts including compensation for lack of work.

The proposals aim to strengthen the regulation of precarious work, which leaves workers, particularly in low-paid sectors, uncertain as to their working hours or their income.

It would also outlaw so-called zero-hours contracts in almost all circumstances.

Staff called into work and then sent home will be entitled to compensation equivalent to three hours’ pay at three times the national minimum wage, or the rate that applies in an area covered by a legally-binding wage agreement.

Mr Douglas described the use of zero-hours contracts as “exploitation” and said it was “a huge abuse of power by employers”.

“There is no guarantee from the employer on the numbers of hours they will give to the worker each week. It harks back to the hiring fair where you line up against the wall and are told it’s one hour today or two hours tomorrow,” Mr Douglas told RTÉ Drivetime.

“The zero-hours contracts and low-hour contracts are prevalent in a number of sectors, particularly retail, service sector, hospitality and the education sector with part-time lecturers.”

‘Not perfect’

Mr Douglas said Mandate gave a “cautious welcome” to the legislation.

“It will give some certainty to workers. It’s not perfect and we will be lobbying hard at committee stage in the Dáil to improve it but it’s a step in the right direction,” he said.

“The have no certainty of earnings, they can’t apply for mortgages or lands, they don’t know if they will have enough money to pay the rent .”

“If you’re on a zero-hours or if-and-when contract you can’t commit to another employer or supplement your income. You can’t go to another employer and say I’m available on Tuesday from 4pm-6pm and so on,” he said.

Ibec’s director of employer relations Maeve McElwee said new laws to address zero-hours contracts would add to the regulatory demands on employers.

Ms McElwee said there would be a significant cost burden to small employers and seasonal employers, to track the hours worked by each employee.

She said that the requirement for an employer to state average weekly hours within five days of somebody commencing work is particularly onerous.