Frasers Group has confirmed that two-thirds of its retail staff remain on zero-hours contracts ahead of new legislation aimed to limit their use.

The retail giant, which was recently booted from the FTSE 100, told MPs examining the proposals to improve protection for workers that 11,500 staff members remained on the contracts and were not given any compensation even if shifts were changed at the last minute.

Additionally, MPs on parliament’s business and trade select committee were told that 4,000 of the 5,200 workers employed at the retailer’s main Derbyshire warehouse were agency workers who could be let go without notice.

Frasers Group chief people officer Andy Brown, who delivered the testimony, said the pace of change was “certainly not fast,” with an average 200 workers per year moving from agency to permanent contracts during the last three years.

The high number of workers on zero-hours contracts was revealed nearly a decade after Frasers pledged to reduce their use following backlash from MPs, although it later backtracked.

Brown insisted the group now tried to give those on the contracts at least 12 hours per week and in the past year had granted an average of 16 hours per week to staff.

He added that managers were able to grant a month’s notice of potential shifts and were asked to grant a minimum of two weeks but could give less without compensation.

Brown told the hearing the business agreed with the “principles of protection for those on low or zero-hours” contracts and had attempted to improve conditions for these workers.

However, he noted: “We don’t see a benefit if those on zero-hours contracts are dissatisfied.”

Labour MP Gregor Poynton said many companies already offered compensation to staff for last-minute changes to their shifts, and told the business “you could do that but you choose not to”.

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