What is the ethical issue?

Organisations provide different types of contracts to employees, and these may carry different benefits. There has recently been a rise in the number of people employed on part-time or atypical contracts. Employers are attracted to more flexible types of employment contracts because of the ability they give to meet increasing variations in demand.

Previously, employment conditions tended to be homogeneous among all employees. Now, a workplace might contain many workers, all with different contracts. Consequently, differences could apply to two workers performing the same job.

Contractual arrangements, including agency contracts, zero-hour and part-time workers, all have the potential to raise issues of fairness. These risks have been amplified by changing working patterns in which atypical contracts are becoming more common, and the same principles of fairness for full-time employees are not necessarily being applied. 

Where there is a lack of equality of opportunity among employees within a workplace, the perception of unfair treatment, inconsistency and double-standards increases.  Examples of unfair practices can be found in terms and conditions of employment, selection for redundancy, dismissal, access to training or promotion, as well as other benefits. These imbalances can create a backlash, both internally and externally.

The use of zero-hours contracts in particular can have negative implications for a business. While the use of zero-hour contracts is not necessarily unfair, their abuse by employers can cause reputational damage. These types of contracts can also impact company culture, as employees on zero-hours may have zero interest in the organisation, or engagement with its ethical values.

 

IBE Guidance

A summary of good practice
  • Atypical contracts must be used in interests of the organisation and the employees in a mutually beneficial way.  An ethical employer will want to treat all its employees fairly. In return, workers will want to ‘do the right thing,’ creating a positive cycle of employee engagement.
  • All employees in similar roles, regardless of the type of contract they are on, should be given equal opportunities. If utilising atypical contracts, organisations should monitor these carefully and be aware of the impacts they can have on employees.
  • Whatever type of contract is in operation, employees are entitled to expect a degree of protection against unethical behaviour, an expectation as to the number of hours they will work, and be supported to do the right thing.

 

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