by Colin Foote, Director - Employment & Equality Law
Businesses using zero hours contracts have come under fire in the media and from politicians too, who claim that they are exploitative and offer no protection to the employees who are employed with them and that all of the benefits are with the employer, but is that really true?
There are two factions, the first who believe that zero hour contracts offer flexibility for both sides and the other who believe they are exploitative, so which one is right and what should you consider if you are thinking about using zero hour contracts?
First and foremost what a zero hour contract does is to engage someone to work for you with no set number of hours. Rather than zero hours, a more informed name for them would be a flexible hour’s contract as this is exactly what it is. The wording of the contract is really important and this is where zero hours contracts have come under fire.
The language used can mean the difference between someone being classed as a worker and not being entitled to things such as minimum holiday pay or being an employee. This depends on the engagement of the work provided by the person and the provision of the work by the employer.
However, some zero hour contracts wording means that the person is effectively self-employed and therefore has no entitlements to holiday pay or indeed, the provision of work. The statistics speak for themselves, with only just over 2 per cent of the whole workforce in the UK on zero hours contracts and some of the 2 per cent will class themselves as full time workers, who work more than 30 hours each week.
You also have to consider the flexibility from the employee’s perspective too. Perhaps they have family commitments or other draws on their time and therefore a zero hour contract works well for them and for the industry they work in.
Therefore, if you are thinking about implementing zero hour contracts in your business, get some legal advice on the wording of these contracts to ensure that you are clear about what you are offering to the people working for you.
For more information about this article or any aspect of our employment & equality law solutions, get in touch with Colin Foote on +44 (0) 845 834 0840
0+
