Zero-Hour Contracts: A Management Report

This management report explores the use of zero-hour contracts in Sainsbury plc, including aims, legal regulations, cost and benefits, and recommendations.

Zero -Hour Contracts
Management Report

EXECUTIVE SUMMARY
The management report is based on zero hour based contracts in which it refers to
providing zero hour based agreement to the workers and employees working in the company.
Zero hour based contracts are also known as casual contracts. The management report is based
on the providing zero hour based contracts to the employees and workers working in Sainsbury
plc. As their main focus is to provide zero waste kitchen challenge that means reducing in the
number of food waste.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Aims............................................................................................................................................1
Legal regulations.........................................................................................................................2
Cost and benefits for organisation to deal with issue..................................................................3
Timescale, cost and prioritisation of any recommendation........................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
The report below is based on zero hour based contracts in management. Zero-hour
contract is an agreement that is provided to employees and workers working in the the company.
The zero hour based contracts is a agreement provided to the employees by the employers of the
company stating that they are not obligated to give a worker and employee with any minimum
number of hours. Zero hour based based are also called the casual contracts of the company. In
this kind of contract the worker and employees is not needed to accept any working hours that
are offered by the employers of the company. The report is based on zero hour contracts in
Sainsbury plc which is the second biggest chain of supermarkets in UK. It is a retailing company
operating in UK. Sainsbury 's supermarket ltd is now divided in three division that is Sainsbury 's
Bank, convenience shops and Sainsbury 's Argos. (Koumenta and Williams, 2019). The report
below includes aims of the company with zero based contracts, legal regulation,cost and benefits
for organisation to deal with a issue,timescale, cost and prioritisation of any recommendation
along with its conclusion.
MAIN BODY
Aims
Sainsbury plc focuses on to provide high quality services to the customers and to increase
and provide good financial return to the stakeholders . Their aim is to serve on to the customer 's
expectations for healthy,safe and tasty food to make their lives easier. The company focuses on
helping the customers to live well. There aim is to provide the customers easy, affordable access
to the things which they need such as healthy and fresh food,quality clothing with the new
technology to manage their precious money. Sainsbury plc is trying to do all the work and
providing the services sustainably. (Koumenta and Williams, 2019).The company has created
multiple brands, multi channel business which gives the customers the choice,convenience and
flexibility. By offering various variants of quality products at competitive prices across food,
financial services, clothing and general merchandise to the customers the company is driving
their efficiency in their day to day operations.
In context to Sainsbury plc zero hour based contracts are increasing in UK. As the
company is employing large number of employees and workers and having zero hour based
contracts. As this contract has helped the UK workforce to maintain high employment levels
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without resorting to any of the layoffs of the country. The company is providing zero hour
contracts to have flexibility between the employers and employees in the company to adapt and
accept the seasonal variations in demand and varying the requirements of the staff in the
company. The employers of the company are reducing the numbers of hours of working of the
employees and workers to reduce risk level in the company.(Taylor, 2018). Zero hour contracts
is also helping the company to reduce the expenses on training and on boarding the new workers
and employees of the company by having in reserve a large group of skilled workers.
Legal regulations
As workers and employees of the company are very valuable and essential part of the
company. When the workers and the employees are fully satisfied towards their work, then they
will work with higher potential in the company. (Datta, Giupponi, and Machin, 2019).To
ensure the satisfaction level of workers and employees working in the company it is essential for
the company 's employers to provide zero hour contract to the workers of the company. When
their hours of working is fixed it will create satisfaction to the workers and company. It is
essential that employers are using the zero based contracts to understand the employees and
workers 's zero hour contract rights. This contracts provides the employees no guaranteed fix
hours of working,pensions,parental leaves and redundancy leaves to the workers and employees.
There are some rights that are provided to the employees and workers based on zero hour
contracts. The some of the rights are as follows:
 To be paid for work travel allowances.
 Right to be paid for being on call.
 The state or national minimum wages to be paid.
 Right to get protection from any discrimination.
 Right to have annual leave and that has to be paid. (Daniel, Persson, and Sandorf, 2018).
In context to Sainsbury plc, the company is providing the zero based contracts to its
workers and employees. Employers of the company are using zero hour contract to employees so
that they can work more than one job. The employees of the company are responsible for
protecting and safeguarding the work environments for the workers in the company. There is no
need to provide notice after the termination of zero hour contract. Employers can wary of any
implied contracts that may be creating with zero hour contract employees. If the employees and
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workers are treated permanent by the employers it can be assumed that the rights attendant to
the employment status.
Cost and benefits for organisation to deal with issue
The cost and financial performance of Sainsbury plc is based on performance of ratios
and ratios that are based on profit of the company. When the ratios are presented towards the
investors then it creates satisfaction and then business is considered as good. The decision that
others investors should invest in Sainsbury plc or not can be analysed by determining the
company 's ratio analysis and the occurred cost. (Singh and Jha, 2019).The cost and ratio
analysis can be performed by having the income statements,annual reports, cash flow statements
and balance sheets. Ratio analysis for Sainsbury can be calculated on the bases of reports and
costs incurred in the company. Sainsbury 's cost strategy and pricing strategy is based on giving
the customers the value for money and the quality of products and services is maintained by
having customer retention. The company practices using competitive costing policy in place of
cost cutting policy as to work on short run to gain the market share in the retail market. The
employers of the Sainsbury plc enjoys the contracts for their versatility. In this contract, the
workers are picking their number of hours of working as their hobby to work with their full
potential and increase their wages. As all the workers in the company are preferring with zero
hour contract because of its flexibility. To deal with any issue there are certain benefits of having
zero hour contract in Sainsbury plc. As zero hour contracts for the employees can provide
benefits are as follows:
 Growth: Zero hour contracts has reduced the cost of hiring for the workers and
employees in the company which can have growth in the company 's workers and
employees.
 Flexibility: Zero hour contract in Sainsbury has allowed the businesses to carry the rising
demand of high seasons or of specific events. The flexibility of this contracts contain the
workers and employees of demographics that may not be interested in full time working
profile agreement.
 Simplicity: As zero hour contract are not supplemented with benefits it is simple in
nature as the agreement are straight forward for the employers who are not having
packages.
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The zero hour based contracts can be considered as the future of work for the workers and
employees to reduce the cost incurred in the company which helps in dealing with the situations
and issues in the company. The cost and benefits analysis helps to deals with issues of the
company.
Timescale, cost and prioritisation of any recommendation
For having zero hour contracts management in the company for the workers and
employees it is essential to identify the timescale period,cost of the product and services and its
prioritisation of the company. The company can ensure that the zero hour contract is provided to
all the workers and employees working in the company.(Morstyn and McCulloch, 2018). Zero
hour contracts generally do not have no statutory rights to notice period which means the
employers of the company can terminate an employee 's zero hours contract without any notice
provided to the workers and employees. As workers do not request flexible working timing, right
against unfair dismissal or cannot have minimum notice period. Timescale for zero hour contract
is based on notice period for the workers of the company. The prioritisation process in Sainsbury
has mentioned that their most of the focus is on prioritizing the most that are in needed
segments. The company ensures in having priority shopping in store and online shopping
through the company 's website. There are restricted items such as staple food items that are to be
prioritized firstly. In addition the has temporarily closed for fresh meats,pizza counters and fishes
in the supermarkets. Along with the online in store shop the company has urged the customers to
shop responsibly as the company is focussing on their efforts on getting as much to get products
and services. There are costs that are associated with the findings and managing work
placements as they involve an individualised service to young generation employees and
employers. Sainsbury can provide funds to set up placements with proposing certifications which
can add costs to company. As two year full time coarse that can be a standard model put under
the plan with expectation of the company. The technical education facility can be recommended
to the company to have different modes of learning for the company. It can be recommended to
the company that as the government incentives are short,flexible so that it is beneficial for the
company to have technical education.
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CONCLUSION
From the above report it can be concluded that the zero hour contracts are the agreement
that are provided by the employers to the employees and workers of the company which is
essential to have efficiency and effectiveness in the company. The report on Sainsbury plc
analysis the company 's zero hour contracts. The company is providing the different rights to the
workers working in the company. As there are certain rules and regulations that are required
regulated by the company. The cost and benefits has proved to be the essential part of the
company as the company is using the strategy of cost pricing strategy rather then using cost
cutting method to have growth and expansion in the markets. There are certain benefits that helps
Sainsbury to gain market share as in context to zero hour contract the company is having
flexibility, large size and growth opportunities.(Saadeh, Al-Khatib, and Kontogianni, 2019).
Along with that there is a timescale known as notice period for the workers and different cost
and prioritisation segments in the company. Sainsbury plc is prioritizing the foremost needed
segments of the company such as food department in staple food that are need to be prioritized
for the company. There are certain recommendation that are to be given for the company,the
company can use the technical learning and online education facility for the workers and the
employees working in the company.
REFERENCES
Books and Journals
Barr, M.J. and McClellan, G.S., 2018. Budgets and financial management in higher education.
John Wiley & Sons.
Boella, M.J. and Goss-Turner, S., 2019. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
Daniel, A.M., Persson, L. and Sandorf, E.D., 2018. Accounting for elimination-by-aspects
strategies and demand management in electricity contract choice. Energy
Economics .73. pp.80-90.
Datta, N., Giupponi, G. and Machin, S., 2019. Zero-hours contracts and labour market policy.
Economic Policy .34 (99). pp.369-427.
Koumenta, M. and Williams, M., 2019. An anatomy of zero‐hour contracts in the UK. Industrial
Relations Journal .50 (1). pp.20-40.
Morstyn, T. and McCulloch, M.D., 2018. Multiclass energy management for peer-to-peer energy
trading driven by prosumer preferences. IEEE Transactions on Power Systems .34 (5).
pp.4005-4014.
Muller, M., 2019. Essentials of inventory management. HarperCollins Leadership.
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Richards, J. and Sang, K., 2019. Socially ir responsible human resource management?
Conceptualising HRM practice and philosophy in relation to in-work poverty in the UK.
The International Journal of Human Resource Management, pp.1-28.
Saadeh, D., Al-Khatib, I.A. and Kontogianni, S., 2019. Public–private partnership in solid waste
management sector in the West Bank of Palestine. Environmental monitoring and
assessment .191 (4). p.243.
Shapiro, A.C. and Hanouna, P., 2019. Multinational financial management. John Wiley & Sons.
Singh, M. and Jha, R.C., 2019. Object-oriented usability indices for multi-objective demand side
management using teaching-learning based optimization. Energies .12 (3). p.370.
Taylor, S., 2018. Resourcing and talent management. Kogan Page Publishers.
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