As part of an out-of-court settlement, Sports Direct has agreed to rewrite its job adverts and employment contracts to make it clear that its zero hours staff (nearly 90% of its workforce) are not guaranteed work.
Zahera Gabriel-Abrahem, who was employed on a zero-hours contract, has brought legal action claiming that part time staff were treated less favourably than full time employees at Sports Direct.
In addition, the retailer is required to produce clear policies on sick pay and paid holiday for zero hours staff, and display the policies in all staff rooms used by more than 20,000 staff on zero hours contracts.
Sports Direct must also send copies of its equal opportunities policy to all store managers and assistant managers with a written reminder that the policy and principles apply to zero hours staff.
These changes mean that Sports Direct will now need to be totally transparent about what sort of contract is on offer.
The outcome also coincides with the Government’s work on improving the treatment of staff on zero-hours contracts having already legislated to eliminate ‘exclusivity clauses’ from these types of contracts.