Santander faces questions over 'one-hour contracts'

Santander is facing questions over its employment practices, according to the Financial Times, after it emerged that it employs hundreds of staff on limited "one-hour contracts".

A recent advertisement for one role stated that the successful applicant would be guaranteed just one hour's work a month and 12 hours a year, with additional work offered as a "mix of pre-arranged and short-notice cover" at "local branches".

In total the FT says the Spanish-owned banking giant employs 371 customer service staff on these contracts, accounting for around 10 per cent – 3,731 – of its overall customer service workforce.

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These one-hour workers are used to supply cover for branch staff, the paper adds.

In recent years there has been a political battle over so-called "zero-hours contracts", which do not guarantee hours and enable employers to operate an ultra-flexible workforce.

The coalition government refused to ban them, arguing that flexibility was essential to the economy and was also attractive to many workers including students. But it did prevent companies from applying exclusivity clauses that restrict workers from taking work elsewhere.

But the contracts have still been stigmatised. While the number of UK workers on them is at a record 905,000 high, growth is slowing down. Companies such as Sports Direct and JD Wetherspoon have now moved staff to fixed contracts.

Asked how its own practice differs materially from these zero-hours deals, a spokesperson for Santander said that staff were granted full employment rights, were under no obligation to take extra hours and were not subject to exclusivity clauses.

The spokesperson added that the average worker on these contracts works 383 hours a year.

Melanie Onn, the Labour MP for Great Grimsby, has written to Nathan Bostock, Santander UK's chief executive, to ask for more information.

She wrote: "In an organisation of the size and magnitude of Santander, I find it highly unusual that the use of casual labour is an accepted form of employment.

"In the circumstances where cover is required for certain roles, it would be usual to have a 'bank' or 'pool' of people who are called upon... without tying them to a contract.

"Alternatively, taking into account the size of the organisation, it would be possible to provide short-term, temporary cover with existing staff."