Zero hour contracts are often used by employers when taking on casual workers without guaranteeing a set number of hours. They are a useful tool to provide flexibility for both parties.
What is a zero hours contract
Essentially there is no guarantee of work from the business and therefore no guarantee of a consistent wage for the worker. Under a zero hour contract a member of staff can either be an “employee” meaning there is no obligation on the business to offer work, but if offered it has to be accepted, or they can be a “worker” meaning there is no obligation to offer work and if offered the member of staff could decline.
These contracts are particularly common in certain industries such as hospitality and retail. For a farm they could be useful to employ temporary staff during harvest time when there is no consistency of hours and work could be dependent on the weather. You need to be mindful that just because no work is being offered it does not mean the contract has automatically come to an end and you should take advice on ending the contract properly when the individual is no longer required.
Limitations and future changes
There is uncertainty for both parties. From an employee/worker perspective, although they are free to seek additional work elsewhere, there is still an inconsistency of income. A business needs to ensure they offer the correct type of contract. If a “worker” contract is issued any work offered could be declined which could create difficulties if there is a shortage of staff. Please contact the Helpline if you require a template zero-hour contract.
The Labour government has announced changes they will be making to zero hour contracts under The Employment Rights Bill. They include obliging businesses to offer guaranteed hours to qualifying workers who work regular hours over a defined reference period which is likely to be 12 weeks, a right to reasonable notice of shifts and the obligation to make payments if shifts are cancelled at short notice. Once these changes are implemented, it could change how businesses continue to make use of zero hour contracts.
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