Zero Hours Contracts

This contract, known as a casual contract or a zero hours contract, is usually used for piece work or “on call” work. They are attractive to some employers as they offer a high degree of flexibility. Zero hours contract are used where the employer wishes to engage an individual on an ad hoc, as required, basis, and where the employer cannot guarantee work, meaning the employer only needs to pay the employee for hours worked.

Although, heavily scrutinised in recent times, the Government has ruled out banning zero hours contracts, with the Business Secretary Vince Cable noting that they offer “welcome flexibility” for employers. They are also supported by professional bodies such as the CIPD. 

Key features of a Zero Hours Contract are:

• The worker will not obtain “employee” status and will not build up any continuity of service (assuming the contract is appropriately written and accurately reflects the relationship between the employer and the worker).
• There is absolutely no obligation on the employer to provide work. Likewise, there is no obligation on the worker to accept any offer of work and there should be no detriment to them if they decline work or work for another company. This is known as “mutuality of obligation”.
• For Zero Hours Contracts to be legitimate there must not be any mutuality of obligation between assignments given to and accepted by the worker.
• Holiday entitlements will not accrue between assignments, only during the period of an assignment.