Zero hours contracts – what are they?
Under a zero hours contract, an employer does not have to guarantee the employee any work and the employee does not have to accept any work that is offered.
Zero hours contract employee rights
Your employment rights on a zero hours contract will depend on your employment status. In England and Wales, a three-tier system of employment status exists which classifies individuals either as employees, workers or self-employed.
It is likely that staff employed under zero hours contracts will be classed as ‘workers’. If a written contract exists, it is usually important to clearly state this.
However, any written document should not be treated as definitive, as what matters is the reality of the situation and not the label placed on the individual.
For example, if an individual is labelled as a zero-hours worker but in fact regularly works 9-5 shifts, they could well be classed in reality as an ‘employee’.
Workers have rights such as paid holiday and the right not to suffer unlawful deductions from wages, as well as the right to bring discrimination claims in an employment tribunal. However, when compared to ‘employees’ the rights of workers are limited. For example, workers do not have the right to a minimum notice period, the right to claim unfair dismissal, the right to maternity/paternity/adoption leave and pay, the right to a redundancy payment or the right to request flexible working.
Why do employers use zero hours contracts?
Zero hours contracts can be a useful tool for employers who need flexibility and casual work for example, warehouse work and in the delivery sector. They are also useful for seasonal employment such as Christmas sale periods in retail.
Whilst often criticised as having the potential to exploit underpaid workers, they can also be useful for workers who need flexible hours e.g. around childcare responsibilities and students who benefit from part-time work around their studies.
It is particularly important for employers to consider if the situation might change and whether there is a possibility that hours might become fixed or more consistent. Where there are consistent hours and a predictable work pattern, it is likely that the worker will be classed as an employee and be entitled to additional rights.
Zero hours contracts – what are they?
Under a zero hours contract, an employer does not have to guarantee the employee any work and the employee does not have to accept any work that is offered.
Zero hours contract employee rights
Your employment rights on a zero hours contract will depend on your employment status. In England and Wales, a three-tier system of employment status exists which classifies individuals either as employees, workers or self-employed.
It is likely that staff employed under zero hours contracts will be classed as ‘workers’. If a written contract exists, it is usually important to clearly state this.
However, any written document should not be treated as definitive, as what matters is the reality of the situation and not the label placed on the individual.
For example, if an individual is labelled as a zero-hours worker but in fact regularly works 9-5 shifts, they could well be classed in reality as an ‘employee’.
Workers have rights such as paid holiday and the right not to suffer unlawful deductions from wages, as well as the right to bring discrimination claims in an employment tribunal. However, when compared to ‘employees’ the rights of workers are limited. For example, workers do not have the right to a minimum notice period, the right to claim unfair dismissal, the right to maternity/paternity/adoption leave and pay, the right to a redundancy payment or the right to request flexible working.
Why do employers use zero hours contracts?
Zero hours contracts can be a useful tool for employers who need flexibility and casual work for example, warehouse work and in the delivery sector. They are also useful for seasonal employment such as Christmas sale periods in retail.
Whilst often criticised as having the potential to exploit underpaid workers, they can also be useful for workers who need flexible hours e.g. around childcare responsibilities and students who benefit from part-time work around their studies.
It is particularly important for employers to consider if the situation might change and whether there is a possibility that hours might become fixed or more consistent. Where there are consistent hours and a predictable work pattern, it is likely that the worker will be classed as an employee and be entitled to additional rights.
