Sports Direct is updating the terms of its zero-hours contracts for more than 20,000 staff after settling a case brought by a former employee who claimed to have suffered panic attacks.
According to law firm Leigh Day, the retailer controlled by Newcastle United owner Mike Ashley agreed to a number of legally-binding changes to its recruitment and policy practices for zero-hours workers.
The use of zero-hours contracts - recently investigated by the Government - is controversial because they offer no guaranteed hours of work, although supporters have argued they give workers greater flexibility.
Leigh Day said that the settlement with former worker Zahera Gabriel-Abraham meant Sports Direct was required to "expressly state that the roles do not guarantee work and produce clear written policies setting out what sick pay and paid holiday their zero hours staff are entitled to".
Elizabeth George, who represented Ms Gabriel-Abraham in her claim against Sports Direct for sex discrimination, unfair treatment and breach of holiday rights, said: "Sports Direct continue to deny any wrong doing or short-falls in their treatment of zero-hours workers but Zahera and many more of the company's zero-hours staff will tell you differently.
"Zero-hours workers are not second class workers. They have the right to be treated fairly and with respect.
"They have the right to take holidays and to be paid when they take them. They have the right to statutory sick pay. They have a right to request guaranteed hours.
"Sports Direct will now have to make that crystal clear to staff."
Ms Gabriel-Abraham said: "I was told that if I took holidays, I wouldn't get holiday pay, and that if I was ill I wouldn't get sick pay.
"It made me feel trapped and helpless, but it's something that Sports Direct won't be allowed to get away with any more.
"Only time will tell whether Sports Direct are really dedicated to improving how it treats its workers. This is a good result for Sports Direct employees, but the fight isn't over yet."
Sports Direct said: "Sports Direct confirms that we have reached a settlement with Ms Gabriel-Abraham.
"The settlement is without any admission of any liability on the part of Sports Direct whatsoever.
"It was clear from the proceedings that we and Ms Gabriel-Abraham felt equally strongly about our respective positions and that each had different perceptions of the events that took place.
"The company will continue the process of reviewing, updating and improving our core employment documents and procedures across our entire business beyond its existing compliant framework."
The Government is considering a ban on exclusivity clauses in zero-hours contracts, which has been called for by unions.
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