Zero Hour Contracts: Application, Legality, and Future Trends

This management report discusses the application of zero hour contracts in organizations, the legality of such contracts in the UK, and future trends in this type of employment. It explores the benefits and challenges of zero hour contracts and provides recommendations for standardization and regulation.

ESSAY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Application of zero hour in an organisation................................................................................3
Legality of zero hour contracts in UK.........................................................................................4
Future trends in zero hour contracts............................................................................................5
RECOMMENDATIONS.................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Formulation of a management report is usually done in professional setting and is an
important style of written communication. In the current report, the concept of zero hour will be
discussed, its application in the organisation and the legal regulations covering this contract.
Lastly, the current and future trends regarding zero hour contracts will be discussed in the report.
MAIN BODY
Application of zero hour in an organisation
JD Wetherspoon Plc is a famous pub having a chain of restaurants in UK as well as in
Ireland and is also referred to as Spoons commonly. It was the first British company to accept the
zero hour contracts as valid contracts based on which employees could be employed in the pub.
Zero hour contract is basically a contract where there is no permanent employment contract
between the employees and the employers (Kenner, 2017). As per this contract, the employer
just contact the employee whenever the work arises and the employee is paid on the basis of
number of hours they worked. The employer is not bounded in any manner to compulsorily give
work and neither is the employee bounded to accept the work that was being given to them.
Further, it also gave the flexibility of choosing or working for a variety of employers at a same
time without any specific conformity to one particular employer. At JD Wetherspoon, the
employees were given a chance of being employed on zero hour contracts basis. This proved to
be an immensely productive option for students and other part time job seekers as they were able
to do the job as per their convenience. If a student finds themselves in say ‘a tight spot’, then
zero hour contracts was an easy way out since they would be able to earn the required amount of
money and then immediately stop working. Initially this contract was termed very attractive
where individuals were comfortable in working when they found it convenient. It also drew no
boundations and therefore the workers found this an easy way in an out of the job which led JD
Wetherspoon alone to employ 24000 workers in their chain of pubs on the basis of this concept
of Zero Hour Contracts.
However, the glamour soon died out when the things became real and there were
increasing number of complexities that employees working in such manner of zero hour
contracts began to face. The first problem was that the lack of any compulsion to give a specific
number of hours as work to the employees. This led to no fixed or minimum amount of wages at
a day’s end and therefore when there was no guaranteed pay or working hours, the workers soon

became flustered (JD Wetherspoon to offer staff chance to escape from zero-hours contracts,
2019). Additionally, there is no regulation, act or law governing the use of zero hour contacts in
UK and therefore, the employees could not sue or bind company i.e. JD Wetherspoons in any
manner should the need arise. The employees working in such manner found that their jobs were
undervalued and underpaid thus crating resentment amongst the employees. All this led to some
serious contemplation about the zero hour contracts and therefore the protests and demands to
acknowledge these type of contracts as legal contracts giving at least some rights to employees
working in this manner began to increase.
Legality of zero hour contracts in UK
As explained in the above section that zero hour is the contract which used to take place between
the employer and a worker where the employer is not obliged to provide any minimum working
hours, while the worker is not obliged to accept any work offered but in the reality Zero hour
contract is not any legal contract in the eye of the UK legislation. Zero hour contract is just a
casual contract which used to bind the employer and the worker (Kenner, 2017). At the same
time Zero hour contract used to have many casual agreement which used to be taken place
between the employer and the individual who is looking for the work. There are many rights
which are enjoyed by the employee in the zero hour contract, some of the right are as follows:
 Worker who are employed in the Zero hour contract cannot be forced by any
employer to work for any particular employer or any one employee during this
period. All the employees are just entitled to complete the task which are agreed
on the contract. Also worker employed in the Zero house contract is having the
right to refuse the work which has been offered to them by the employer.
 All the worker who are employed in the Zero hour contract are entitled to be paid
for the time period they have provided their service to the organization
(Freedland, 2016).
 Zero hour worker are entitle to statutory annual leave and national minimum
wages to be paid to the worker same as the regular employee of the organization.
Also all the employer has to make sure that they are compiled with the different
employment law under employment act 2007.

 All the employee who are employed under Zero hour contract are always entitled
to have a safe environment to work, compiling with the health and the safety act
of the UK.
 Zero hour worker are also entitle to have the holiday pay but the idea about the
holiday need to be mention at the time of signing up of the contract.
At the time of obligation of the right
As explained, there are many rights which are enjoyed by the employee and the employer in the
Zero hour contract but at the time of any obligation of right from either side as per the statutory
contract there is no secured or the legal platform to have a remedies of the same. The biggest
reason behind the same is that Zero House contract is not legal contract in the eye of the
government. As a result, no legal body of the UK used to hear about the issue or the conflict of
the interest which is faced by the employee and the employer in the Zero hour contract
(Spracklen, 2017). For example, if any employee is forced by the employer to accept the offer of
the employer and work for the organization, it is against the right of the contract but there is no
platform which can help the employee to safeguard their position in front of the employer.
Future trends in zero hour contracts
There are many reasons which are suggesting that zero hour contract is the future of the
working for all the organization in the market. Flexibility of the demand is one of the that reason,
as there is flexibility in the demand in the market, all the organization used to develop the
suppleness into their structure so that the Human resource which they are looking to build in the
organization are good enough to over come the flexibility of demand and also do not increase the
cost as at the tine of low demand the requirement of employee will also be less (Whitehead and
Phippen, 2015).
That the reason there is a very positive trend for the zero hour contract in the future
which eventually means that large number of company will be hiring the employee on zero hour
contract. There is also a good trend that in future there will be a legality of the contract so that
right of the employer and the employee can be safeguarded by the legal body in the UK. As in
today’s scenario there were 1.8 million zero hour contract signed in the year 2017 (Stats related
to zero hour contract. 2018). As UK is one of the most favoured destination for working by many
Asian, it is the responsibility of UK government to safeguard their position in the nation. That’s
the reason the government of the UK are taking corrective action to bring the legality of the law

regarding zero hour contract to safeguard the position of both the parties involve in contract.
Also it helps in improve the quality of the human resources in the nation and retaining them for
the longer period of time in the nation.
Cost: The cost aspect is an extremely favourable part of zero hour contracts since it involves
hiring employees only when their requirement arises and additionally, the another aspect that can
be taken into consideration is that hiring employees on the basis of zero hour contracts reduces
the other major expenses such as employee gratuity, medical allowances and many other benefits
that might create a legal bind and compliance in the company. Therefore this acts as a win-win
situation since the employers do not have to give full time employment and other associated
benefits and also, they can hire employees where they require so that in busy seasons or days
extra workforce can be hired.
Benefits: There will be many benefits which will be enjoyed by both the parties in zero hour
contract in the future. As zero hour contract will help the company in managing the cost of the
company in better way specially for the organization who is working in the hospitality industry
(Adams, Freedland and Prassl, 2015). At the same time the organization will not able to make
the good bonding with their employee in the organization as employee used to come for the
shorter period of time in the organization.
Another benefit which will be seen by the organization due to the future trend in the zero hour
contract is that it helps the organization in seeing good amount of the skill set in the organization
as organizer can higher the employee with the higher variety of the skill set which eventually
help the organization in improving the quality of the human resource in the organization but at
the same time as the government is looking to introduce the legality in the contract it may affects
the efficiency of the business. As after the contract will be legal in the UK there will be many
legal compliances and the rule which has to be followed by all the organization. This will
eventually affect the efficiency of the operation of the business in the long run of the business
(Alexander and Haley‐Lock, 2015).
CONCLUSION AND RECOMMENDATIONS
Based in the research conducted above, it can be adequately concluded that though zero hour
contracts are a good option of employment for a variety of workers, it still needs to be
standardised and formulated in proper manner in UK governed by adequate laws, acts and
regulation.

 The zero hour contracts are an attractive option for students and therefore can help in
increasing the number of wage earners in the country if the working terms and conditions
are made attractive.
 There should be a minimum wage that must be paid on an hourly basis thus giving some
sense of security to the workers working in this manner and therefore, if not sure about
the number of hours they are going to get work, they can still ensure that they will at least
earn this much wages.
 The organisations can greatly benefit by hiring employees according to the skill set
necessary to complete a particular job and thus ensure that their tasks get completed
efficiently without having to employ them on a permanent basis.
 When there would be a proper governing body, both the employers and employees would
feel a sense of security while entering into zero hour contracts thus fostering this
mechanism of employment.

REFERENCES
Books and journals
Kenner, J., 2017. Inverting the flexicurity paradigm: the United Kingdom and zero hours
contracts.
Freedland, M. R., 2016. The contract of employment and the paradoxes of precarity.
Spracklen, K., 2017. The future of work and leisure.
Whitehead, O. and Phippen, A., 2015. An investigation into the ideas and effects of zero-hour
contracts within the United Kingdom. Journal of Research Studies in Business and
Management. 1(1). pp.189-209.
Adams, A., Freedland, M. and Prassl, J., 2015. «Zero-hours contracts» in the United Kingdom:
regulating casualwork, or legitimating precarity?. Giornale di diritto del lavoro e di relazioni
industriali.
Alexander, C. and Haley‐Lock, A., 2015. Underwork, Work‐Hour Insecurity, and A New
Approach to Wage and Hour Regulation. Industrial Relations: A Journal of Economy and
Society. 54(4). pp.695-716.
Online
Stats related to zero hour contract. 2018. [Online]. Available through: <
https://www.independent.co.uk/news/business/news/zero-hours-contracts-number-ons-gig-
economy-latest-a8317646.html >
JD Wetherspoon to offer staff chance to escape from zero-hours contracts. 2019. [Online].
Available through: <https://www.theguardian.com/uk-news/2016/sep/12/jd-wetherspoon-sports-
direct-zero-hours-contracts>
1

2