Zero Hours contract is an agreement between an employee and a company that doesn’t have any fixed time. In this, the employee does not have any guarantees for the time to work. It is a casual agreement between the companies and the employees.
It is one of the written contracts where there are different kinds of provisions set for the employment status, rights, and also some obligations for the employee.
The contract doesn’t ask for any proper employment. The company offers work according to the need, which provides them with a few are opportunities in the future.
There are not any fixed asked to work on, and it also gives more excellent stability and flexibility for an employee who wants to do life and work balance. For employers, this contract is one of the best ways to save money on the form.
As the business is not obligated and it also provides many benefits to the people who are working full time. It helps to increase the workforce of the firm, but it also decreases at the same time. It is a contract of employment that allows a form to keep regular work for the employee, but it is like an on-call event as the employee is appointed only when there is some work.
Table of Contents
The entitlement that Zero Hours Contracts offers to an Employee
An employee gets at least minimum wage for each hour he or she worked. It should be as per the National Minimum Wage.
In addition to this, workers can also have their annual leave along with sick pay, rest breaks, and some rights and protection from any discrimination.
Employees working with the contract will not have employee status, but one can work with flexibility and get minimum statutory notice. Zero hours employees will incorporate the rights for not being unfairly dismissed.
When should an Employer opt?
It is used when an employer wishes to engage with a worker or an employee for a casual agreement. It helps the firm to expand and gets more flexibility to people who are looking for part-time purpose.
Such a contract is suitable for businesses that are providing excellent flexibility for the supply of workers.
Especially when it comes to a new business, this contract is one of the best benefits for the staff members and also the form to get excellent flexibility.
Also, when it comes to seasonal events such as pleasure, hospitality, and catering, one can increase employee staff based on a contract, which can help them in a better way. Zero Hours contracts are also one of the advantages when it comes to the unexpected absence of any staff due to sickness or any emergencies.
This contract is quite famous in the UK and America, where there is excellent flexibility for an employment agreement. Zero Hours arrangements are quite relatable to public sectors, restaurants, retail outlets.
Such contracts are working seamlessly nowadays, but if an employee wants a sufficient hour and pay, then the Zero Hours arrangement is not suitable for them.
When an Employer or Employee should not opt?
It is a backup for a firm, where one can rely upon the employee, who is dedicated for an extended period, but it is a temporary solution. A company that is looking for permanent solutions for channelizing main functions should not opt for this solution.
Such zero-hour deals have an employee who does not have fixed pay or fixed hours, and it helps people to get a job who wants to work dedicatedly. But a company that already has staff members who are ready to do overtime for accomplishing the peak in demand should not opt for it.
Zero hour deals should not be practiced when an employer wants to meet primary business needs all the time and hence do not offer the contracts to the existing staff members to take annual leaves, sick leaves, or leaves for any other reasons in the busy or essential working periods.
A company must not use its agency staff for a temporary basis or any short notice just for the sake of meeting the business needs for a shorter period.
So, in all such cases, hiring employees with Zero Hours contracts would not be considered a prudent practice.
Zero Hours Contracts Advantages and Disadvantages for Employers
One of the essential advantages of using Zero Hours contracts is it provides excellent flexibility to the employers.
Especially when it comes to people who want to achieve something but also need extra funds, they must go for Zero Hours deals. When it comes to organizations’ point of you, Zero Hours contracts are one of the best ways to get the work done quickly and effectively.
One can easily manage to work when it comes to an increase of sudden demand. Also, when it comes to promotional events or for the launch of a new product, one can quickly appoint work to an employee to cover the particular event.
Also, if any staffs are on and leave, for example, long-term sickness or maternity leave, an individual can easily cope up with the absences made by the existing staff members. Another significant advantage is when there are current employees who are on leave, Zero Hours contracts employees can quickly build up their space in a busy period.
Zero Hours arrangements are one of the significant advantages for new businesses or start-ups who are finding flexibility in working. Also, when it comes to limited funding, one can quickly appoint people on Zero Hours contracts.
When it comes to finding out different opportunities for recruitment, employers will undoubtedly look for salary. Also, organizations can hire people based on Zero Hours contracts, which will be quite cheaper, and it will ultimately result in less usage of funding.
Let us now have a look upon some of the cons of Zero Hours contracts for the employers-
When it comes to concern for employers, there can be differences such as delivering quality work and also of meeting the standards of the organization.
Zero Hours contracts are quite tricky, and it can also reflect to work hard and get a proper employee status.
Zero Hours deals don’t have any obligation to accept work; moreover, it can be difficult for the employee to obtain any desired action. Zero Hours contracts are best for the ones who are balancing their life as well as work.
In Zero Hours Contracts, different employees get involved in similar sorts of works, and hence the quality of work and service delivery varies a lot. So, maintaining the company standards with all the employees can be a daunting task for an employer with such kinds of contracts.
If an employer wants to opt to hire employees on Zero Hours Contracts, then it is suggested that they should try to offer proper and prior notices about the work to the employee. This will let their work-force arrange their work schedule properly, plus the employees will also have the clarity that their jobs will not be canceled suddenly without any notice.
Employers should not cancel the assignment all of a sudden, or at the very last minute, as this will let the employees stick to that employer and work properly as per the required schedule and standard.
Zero Hours Contracts Advantages and Disadvantages for the Employees
In the same manner, as employers have pros and cons both with such a contract system, employees also have their upsides and downsides of Zero Hours contracts.
One of the key advantages of this way of working is having the flexibility of working as per your own choice. Even a college or university student can opt for a job with Zero Hours Contracts. Part-time employees, freelancers, retired individuals, etc. can also get a job as per their skill sets and convenience. People can opt for Zero Hour Contracts without hampering their other commitments.
So, such jobs offer skilled individuals to make more money.
However, along with these advantages, Zero Hours Contracts also have some significant disadvantages for the employees as well. With such contracts, employees do not have job security and fixed income that they get with their permanent jobs. So, if you are opting for such jobs, you will not be aware of the things like when your next working shift is going to come, or when you are going to get your future paycheques.
Even in some of the cases, the assigned jobs can be canceled without any prior notice from the employer. This will let employees have no jobs for a particular period, so such jobs always put you in some vulnerability like what you will do if your employer cancels the job.
So, if you are ready to bear the uncertainty of the job, then this option would be quite useful for you.
On the concluding note, we hope you would have understood what the contract is and how it channelizes working in between employers and employees.
It is an agreement according to which, employers can change the number of working hours assigned to an employee, so workers will not get any fixed hours to work.
What are your thoughts about this kind of working contract?
If you are an employee, then tell us how useful it is for you?
And if you are an employer, have you ever tried hiring employees on the Zero Hours Agreement, or are there any plans of hiring employees on such contracts?
Share your views with us in the comments below.
Liked this post? Check out the complete series on Human resources