Back to Blogs
Image 2024 10 08 T11 17 52
Share this Article

What is a zero-hour contract?

  • Publish Date: Posted 18 days ago
  • Author:by Abi Talbot

Zero-hour contracts are also known as casual contracts that provide flexible options for both employers and employees, but there may be changes to the laws regarding zero hour contracts in the UK since the introduction of the new Labour Government.

Labour’s manifesto

Labour is proposing different changes to employment law in attempt to implement ‘the biggest upgrade to workers rights in a generation’ Kier Starmer claimed.

The main elements of zero hour contracts are:

  • Employers don’t have to provide consistent hours

  • Employees don’t have to accept the work provided

Make Work Pay

However, now Labour are on a mission to ‘make work pay.’ They want to end ‘one-sided flexibility’ and ensure all jobs provide a level of security and predictability. Labour’s manifesto highlights how the ban of zero hour contracts will eliminate exploitative culture in the workplace, whilst providing a contract that reflects the number of hours they regularly work (based on a 12 week period.)

Your rights under a zero-hour contract

If you work under a zero-hour contract, your employment status could be considered as an ‘employee’ or ‘worker.’ Your worker rights are based on your employee status, not your contract.

There are certain laws that are already in place that highlight your rights under a zero-hour contract, these are:

  • National Minimum Wage and National Living Wage

  • Statutory annual leave

  • Protection from discrimination

  • Shift breaks

  • Pay slips

  • The right to claim unfair dismissal Advantages of a zero-hour contract

Checklist and pen on a table

A flexible schedule

Zero-hour contracts offer benefits for those seeking flexibility in their work routine. For individuals who need to juggle other commitments, such as caring for young children, the ability to choose when to work can be highly beneficial. Additionally, people with a full-time job might opt for a zero-hour contract to earn extra income through a part-time role with a flexible schedule. This type of contract is also advantageous for working students, as it allows them to manage their work hours around their academic commitments.

Quick income from multiple sources

You cannot stop an employee under a zero-hour contract from looking for work elsewhere. The law states that they can ignore clauses in their contract that prevent them from:

  • Looking for work

  • Accepting additional work from another employer

This opportunity would be beneficial for someone who is perhaps has an upcoming lifestyle change such as;

  • Buying a house

  • Buying a car

  • Has had circumstance changes and now require extra income

Working multiple jobs and having different income streams could increase the feeling of security as you will always have one source of income, whilst also giving you the freedom to work a specific number of hours.

Increasing knowledge and experience

Having different places of work allows you to learn from others and gain different workplace experiences. You will be working with people that have similar interests and goals to you, all with different levels of knowledge and experience, so make sure to take in all of the information and develop your own personal skills. In some circumstances, your roles may differ, this will help keep you stimulated and maintain a certain level of productivity as you will be avoiding a repetitive workflow.

Disadvantages of zero-hour contracts

Unpredictable work hours

Even though having flexibility in your career is beneficial, there can also be an element of uncertainty. There can be a sense of unpredictability in regards to shift times, making planning your week schedule somewhat difficult. Although zero-hour contract workers are not obligated to take every shift, they will often accept as this style of working is where their income comes from- resulting in a lot of rescheduling!

Unpredictable income

Additionally, working under a zero-hour contract can also make budgeting difficult due to fluctuating work hours, influencing a lot of zero-hour contract employees to accept as many shifts as they can. Industries that most commonly use zero-hour contracts are:

  • Care work

  • Delivery drivers

  • Hospitality

  • Warehouse work

Changes to the use of zero-hour contracts isn't the only workforce change that Labour are planning to make. In their manifesto, they have hinted towards several changes to employment law.

Read more

Let's get social...