Sports Direct denies use of zero-hours contracts for warehouse staff as it reports profits up 3.6%

Sports Direct reported first half profits before tax up 3.6 per cent to £166.4 million

Hazel Sheffield
Thursday 10 December 2015 10:52
Comments
Sports Direct's chairman said that the retailer fully complies with legal requirements
Sports Direct's chairman said that the retailer fully complies with legal requirements

Sports Direct chairman Keith Hellawell has used a half-year profits statement to declare that the retailer does not use zero hours contracts for its warehouse staff – because all such staff have contracted hours with agencies.

“To be clear, no warehouse workers are on 'zero hour' contracts, all have contracted hours with the agencies,” Hellawell said. “In retail, casual workers find the flexibility offered by these arrangements very useful. We comply fully with all applicable legal requirements and will continue to keep these under review.”

Warehouse staff account for 5000 of Sports Direct's workforce. The retailer still uses zero-hours contracts for many store staff - which accounts for the majority of their 24,000 employees.

Zero-hours contracts mean that an employer is not obliged to offer an employee any certain number of hours - and the employee is not obliged to accept them. They have been heavily criticsed for not giving workers enough financial stability.

Hellawell also commented on issues with the security procedure for staff entering and exiting warehouses. He said that following a review the process has been streamlined and waiting time reduced.

An investigation by the Guardian found that the unpaid extra time taken for thorough, compulsory searches meant that workers were paid less than the minimum wage.

Sports Direct reported profits before tax up 3.6 per cent to £166.4 million, up from £160.6 million in the same period last year. Revenue was flat at £1.4 million.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in