Latest Pledge Supported By Trade Unions And Rejected By Business Groups

The Labour party has announced that it would outlaw the majority of zero-hour contracts if it formed the next Government following the General Election on 7 May.

Revealing the policy on a day of election campaigning in which the needs of businesses took centre stage, Ed Miliband said he would give workers on zero hour contracts the right to a regular contract within 12 weeks.

According to Labour, more than 90% of the 1.8 million zero-hour contracts would be banned as a result of the new rules.

Christian May of the Institute of Directors described the proposals as "unnecessary and potentially damaging" whilst John Cridland, director-general of the CBI, said that “a proposal to limit the flexibility on contracts to 12 weeks misses the mark.”

TUC general secretary Frances O'Grady said: "We need a fairer system that guarantees zero-hours workers decent rights at work and stops them from being treated like second-class employees."

Labour’s announcement was made on the same day as 100 senior business executives signed an open letter in support of the current Government’s long-term economic plan.

In a separate move, the Liberal Democrats have set out plans that would entitle new fathers to six weeks of paternity leave.

Kirsty Ayre, an employment partner at Irwin Mitchell, said: