Uber's Zero Hour Contract Model

This assignment examines Uber's implementation of a zero-hour contract model. It discusses the terms of this agreement, highlighting the absence of guaranteed working hours and its reliance on employee availability. The legal framework governing these contracts, particularly the Employment Rights Act, is explored. Additionally, the analysis delves into Uber's stated policies regarding minimum wage, sick pay, holiday pay, and tax implications for both the company and drivers. Finally, the assignment considers the economic consequences of this model for both Uber and its workforce, including potential benefits and drawbacks.

Uber's Zero Hour Contract
and Legal Policy

Uber's Zero hour contract and its legal policy
In the Zero hour contract both worker and employer agree that there will be no minimum
working hours that are provided by the employers to workers. Both of them agree on the same
contract. Uber which is a cab service provider company has adopted Zero hour contract policy.
There are no fixed hours for working and is up to the wish of employees'.
The Employment Rights Act governs Zero hour contract. The legal policy of Uber is as
follows:
1. Uber drivers are provided with minimum wages by complying with National Minimum Wage
and they are required to work with reference to more hours they had worked.
2. Moreover, Uber drivers are also provided with sick and holiday pay in either of the incident
happens.
3. The tax is less paid by the company as usually zero hour workers are less paid and this helps
company to save taxes and in turn government is affected as less taxes are paid with reference to
zero hour contracts (Ahmed).
4. Even the pay scale is low, Uber provides more work benefits to employees' who works on this
basis.
Uber is producing more profits as drivers are attracted by these benefits in terms of
monetary and non-monetary as well. The workers are producing more income and according to
the reports, Uber is earning more of the revenue from the Zero hour contracts. These benefits are
useful to workers and company as well.
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REFERENCES
Ahmed, 2017 Zero hours contracts reach record levels [Online] Available Through:
<http://www.bbc.com/news/business-39147135>
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