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Zero Hour Contracts
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I’VE BEEN TOLD TO AVOID IMPLEMENTING ZERO HOUR CONTRACTS INTOMY BUSINESS, DO YOU AGREE? No we don’t! Zero hour contracts do get a lot of bad press and some think of them as a tool for employers to abuse their employees, but in reality, when used correctly zero hour contracts can be a useful asset for employers and employees alike.
WHAT ARE ZERO HOUR CONTRACTS?
Zero hour contracts are contracts that provide no guarantee of any specific amount of work – or any work at all! They can be very useful for those employers who have fluctuating or variable amounts of work e.g. those who need cover for sickness absence, holidays or seasonal work.
WILL MY EMPLOYEES BENEFIT FROM ZERO HOUR CONTRACTS? Yes. Zero hour contracts are useful for those employees who may struggle to work fixed hours e.g. those with caring responsibilities, students or those who simply prefer the flexibility of being able to choose their own hours.
HAVE YOU AN EXAMPLE OF BAD PRACTICEWHEN IT COMES TO ZERO HOUR CONTRACTS? Having someone who works Monday – Friday 9am – 5pmweek in week out on a zero hour contract is clearly not genuine. Courts and tribunals will hold that custom and practice overtakes the zero hour clause and that this zero hour contract is not genuine, and will be struck down.
DO THOSE EMPLOYEESWHO ARE ON A ZERO HOUR CONTRACT ACCRUE HOLIDAYS? Yes, people on zero hour contracts do accrue holidays and their statutory minimum holiday entitlement is 12.07% of what they work. Holidays should still be requested, taken and paid in the usual way as other employees on regular contracts.
12.07% HOLIDAY ENTITLEMENT
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