Department Stores

House of Fraser staff to face switch to zero-hour contracts

Those who do not accept the new contracts could reportedly be made redundant regardless of their length of service at the group

Frasers Group has reportedly entered its House of Fraser staff into consultation regarding a switch to zero-hour contracts. 

According to Retail Week, the Mike Ashley-owned department store has commenced the process that will impact all store staff below management level.

One source told the publication that the consultation began on 1 July 2021, with staff members offered new zero-hour contracts in place of their existing contracts.

The unnamed source also claimed that those who do not accept the new contracts, which could result in the loss of holiday and sick pay, face being made redundant regardless of their length of service at the group.

Frasers Group inherited the current contracts when it acquired House of Fraser in 2018, but reportedly sees the system as outdated and inflexible.

The firm has already moved all non-management staff at Evans Cycles to “casual workers agreements” earlier this year.

The switch came as 300 jobs were cut and management was moved to 45-hour contracts as a part of cost-cutting initiatives in March.

Retail Sector has contacted Frasers Group for further comment.

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