There has been much debate recently regarding the use of zero-hour contracts by UK employers. But what are they and what are their advantages/disadvantages?
What Are Zero-Hour Contracts?
As the name suggests, a zero-hour contract means no obligation on the employer to provide the worker with any working hours. Similarly, the worker is under no obligation to accept those hours when they are offered.
Why Are They Used?
They're most often used by those sectors of the economy that require a flexible workforce due to their changeable need for staff, such as restaurants and factories.
Read more: The Importance of Contracts for Employees and Employers
What Are the Disadvantages?
Due to their very nature, it's important for employers and workers to understand that their relationship is not the same as a normal employer/employee scenario. Those working under a zero-hours contracts will most likely be classified as ‘workers’ as opposed to ‘employees’, and subsequently have less rights.
One note of caution for employers who use zero hour contracts is to make sure that they become to rely upon those initially employed under a zero hours contract to fulfill their weekly hours as this over time could allow workers to claim that an obligation for them to work had been created, and as such, giving them according rights of an employee.
Trade union Unite has estimated there are upwards of 5.5 million workers on zero-hour contracts, but do these contracts deserve the criticism they receive? The explosion in their use is a reflection of the tough economic conditions employers are dealing with.
What Are the Benefits?
Employers don’t want to find themselves having an obligation to provide work to staff members they will not require on a consistent basis. Also, having workers on zero-hour contracts is cheaper than paying agency fees for temporary workers.
From the worker's perspective, a zero-hour contract provides flexibility, with no ongoing requirement to accept the work offered by the employer; ideal if you are a student or have no set working requirements, but not so ideal if you require consistent employment to meet your commitments and obligations.
Recent proposals preventing employers from stopping workers seeking extra work elsewhere should improve matters for workers, but that will not stop zero-hours contracts remaining to be in the spotlight. Whether or not you think they are exploitative of workers or a flexible tool for employers, the use of zero-hour contracts is likely to continue.
Talk to Howells About Employment Law
At Howells Solicitors we specialise in providing expert legal advice to both employees and businesses alike. For employment contract advice, get in touch today on 01792 410016
