Zero hour contracts are a bit like marmite… you either love them or hate them! Personally, I like them as they offer flexibility on both sides. Sometimes it is difficult to know exactly how many hours per week you can commit to when you have a new role; especially significant for small businesses just embarking on employing their first one or two people. The last thing they want to do is employ someone on more hours than affordable when you really don’t know if the level of business is going to remain the same, increase, or even decrease.
As a HR Consultant I have come across businesses where these contracts are not being used correctly, and other businesses that have skilfully embraced the flexibility zero hour contracts bring. The really shouldn’t be used to ‘control’ the employee by not allowing them to work anywhere else or demanding the person is available seven days a week (even if they are only actually used for 2 or 3 of those days).
There are some scenarios where zero hour contracts are a clear benefit. For example; domiciliary care organisations may not be able to guarantee working hours for all staff as rotas for home visits change at short notice. They rely on casual staff to fill gaps created by the changing needs of their clients. Zero hour contracts can also be good for students, as they provide the flexibility needed for working around lectures and work placements, helping them to support themselves financially through their studies.
Unfortunately, there are organisations that do not apply a holiday entitlement calculation, significantly reduce other benefits for those on zero hour contracts compared to their full time staff, and put unfair restrictions on the employee concerned so they can’t work elsewhere. This is clearly disadvantaging those who would otherwise prefer to be on a zero hour contract.
There are many pros and cons to the zero hour contract and its possible the benefit of the flexibility of these contracts has been lost along the way during the current debates. There would seem to be a case for keeping them available to both employers and employees, but they must be applied fairly.
So what’s the answer? I don’t believe we need more legislation or regulation regarding the management of zero hour contracts as we already have a robust system that determines what is fair and unfair in the world of employment. However, I do believe sensible, realistic guidance and training in the use of zero hour contracts is an absolute must. As employers, we have a duty to protect our employees from exploitation or unfair treatment, but at the same time deliver the working patterns our businesses need in order to thrive and grow.
As a HR Consultant I have come across businesses where these contracts are not being used correctly, and other businesses that have skilfully embraced the flexibility zero hour contracts bring. The really shouldn’t be used to ‘control’ the employee by not allowing them to work anywhere else or demanding the person is available seven days a week (even if they are only actually used for 2 or 3 of those days).
There are some scenarios where zero hour contracts are a clear benefit. For example; domiciliary care organisations may not be able to guarantee working hours for all staff as rotas for home visits change at short notice. They rely on casual staff to fill gaps created by the changing needs of their clients. Zero hour contracts can also be good for students, as they provide the flexibility needed for working around lectures and work placements, helping them to support themselves financially through their studies.
Unfortunately, there are organisations that do not apply a holiday entitlement calculation, significantly reduce other benefits for those on zero hour contracts compared to their full time staff, and put unfair restrictions on the employee concerned so they can’t work elsewhere. This is clearly disadvantaging those who would otherwise prefer to be on a zero hour contract.
There are many pros and cons to the zero hour contract and its possible the benefit of the flexibility of these contracts has been lost along the way during the current debates. There would seem to be a case for keeping them available to both employers and employees, but they must be applied fairly.
So what’s the answer? I don’t believe we need more legislation or regulation regarding the management of zero hour contracts as we already have a robust system that determines what is fair and unfair in the world of employment. However, I do believe sensible, realistic guidance and training in the use of zero hour contracts is an absolute must. As employers, we have a duty to protect our employees from exploitation or unfair treatment, but at the same time deliver the working patterns our businesses need in order to thrive and grow.
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