Zero Hour Employment Contracts: A Critical Analysis of Its Impact

This report provides a comprehensive analysis of zero-hour employment contracts, exploring their advantages and disadvantages from a business perspective. It defines zero-hour contracts, highlighting the flexibility they offer to both employers and employees, particularly in sectors with fluctuating demand. The report examines the UK context, citing statistics on the number of workers on these contracts and their statutory employment rights. It discusses the benefits such as flexibility for employees and the ability for businesses to manage staffing costs effectively. The report also addresses the drawbacks, including the lack of guaranteed hours and potential for exploitation. It references various viewpoints and studies, concluding that zero-hour contracts can be mutually beneficial when used appropriately, but issues arise when they are used to exploit workers. The report emphasizes the importance of written contracts, employee rights, and the need for businesses to use these contracts responsibly, providing insights for both businesses and employees regarding this employment model.

Introduction to
critical thinking

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................3
REFRENCES...................................................................................................................................4
.........................................................................................................................................................5

INTRODUCTION
Zero hours contract is a non-legal term and utilise for describing various type of casual
arrangement within employer and individual. In simple term, zero hours contract is one in that
employers don't guarantee any working hour to individual (Hughes and et.al., 2017). Work will
be offer to individual by employers when it arises and its up to the person they can accept as well
as reject it. Zero contract hour mainly utilise in agriculture, hotel, catering, education and
healthcare sector. This report is based on Zero Hour employment contract which is a good thing
or not. Mainly it is utilise when demand for work is irregular or their will be no constant demand
for staff. In relation to employees zero hour employment contract provide level of flexibility for
individual.
MAIN BODY
Topic: “Zero Hour employment contract… a good thing”?
Zero hour employment is type of contract done between employers and worker in which
employer is not duty-bound for providing any minimum working hours. Whereas, worker is also
not obliged for accepting any work offered (Alexander and Haley‐Lock, 2015). Moreover,
employee may sign agreement which shows that he/she will work when required so their will be
no particular working hours or time. Apart from this, its depend on the individual whether they
want to accept or not offer given by the employers. Zero working hour contract mainly use in
hotels, agriculture, catering, education, healthcare sector and so on.
As per the views of Tubman, 2019 it has been analysed that zero hour contract is not bad
because it provide flexibility of work to both employers and employees. In addition to this, under
zero hour contract employees are still entitled for minimum wages as well as workers have to
take pay and rest period in line with the working time regulation 2016 (Campbell, 2019). Apart
from this, within respective contract it is important for an employers to be aware for employees
on zero hour arrangement. For instance, if employers are asking for work within short notice it
may result in stress for employees which will based on individual circumstances. Thus, for
avoiding any type of confusion it is necessary to have written contract within employers and
employees which include roles as well as responsibilities of individual.
As per the view points of Spruce, 2016 it has been analysed from the current estimation
of Office for National Statistics that approx. 801,000 number of worker in United Kingdom are
1

on Zero hour contract. On the other hand, 2.5% people are engaged in employment full time
basis. In addition to this, if an individual is on zero hour employment contract then they have
statutory employment rights (Schmid and Wagner, 2017). It is important for individual to know
whether he/she hired as an employee or worker because they both have different rights. Such as
workers are entitled for several employment rights like rest break, annual leaves, the national
minimum wages, protection against discrimination and so on. Along with this, worker can take
major action against unlawful wages deduction and they don't work more than 48 hour in week
as well as have right of protection against discrimination if chosen to work part time. On the
other hand, while working as an employee they can entitled for all the above mention rights and
several other also like maternity, paternity, adoption, parental leaves, sick pay, minimum notice
period. Along with this, they have right to request for flexible working hours, redundancy pay,
time off for emergencies as well as they can claim for protection in relation of unfair dismissal.
Since 26th May 2015, employer cannot enforce an exclusivity clause on individual if they are on
a zero-hour contract (Rubery, Keizer and Grimshaw, 2016). It means that employers are entitled
to have other forms of occupation as well as individual zero-hours contract. Although, respective
contract scheme can be done by every person but mainly students as well as retired person are
doing this because they need some source of income and want to use their time in effective
manner.
In addition to this, office for national statistics saying that mainly people under 25s and
over 65s are working for zero hour employment contract as well as majority of working is 26
hours in a week. Majority of people are happy with their zero contract working hour and 37%
people want more hours to work in comparison of 10% people in other kind of employment want
more hours. Apart from this there are some reasons due to which zero-hours is not great for few
workers because there is no fixed hour of working which may result in several difficulties for
life. As well it is not correct for those people who need fixed income.
Government of United Kingdom suggested that Zero hour employment contract only use
for covering unexpected sickness, seasonal work, special events as well as if business is new and
having unpredictable or fluctuating demand. Thus, zero hour employment contract is mutually
beneficial for both businesses as well as employees. But issues or problem will created when
business use these contracts for exploiting workers.
2

As per the view of Rob Tubman, zero hours contract is termed as non legal term. It is used for
explaining and describing various types of casual management and arrangement among an
employer and a person (Karl, 2017). Zero hours contract is one of that method in which company
employer does not give any guarantee to an individual for any hour of work. In this, employee
give work to an individual when it arise that refer as a person can accept it and take the work or
have choice to not accept up offer of work on that occasion. There are some work which are
driven by external factors which are outside the employers control and management. It is used by
employers in order to secure flexible employees (O’Sullivan and et.al., 2017). Such kind of
contracts are specially famous and popular in the catering and retailing industry in which staffing
is required at different level. In an organisation, employers are paid money to their employees on
the basis of zero hour contracts where they required to do task and does not spend money on
wages for workers which does not required. Zero hour contracts are provide a benefit and
advantages to such seeking flexible, infrequent and part time employment. It is an agreement in
which employer is not obligated to give an employees with any minimum number of hours.
According to the opinion of Sarah O’Connor, there are around 80,000 people who are on
this contract ion the United kingdom, whether they are men or female and they are decided to
conduct debate on this topic. But UK is not alone in analysing a shift towards flexible working,
temporary or fixed term agreements which have became more general in may parts of continental
Europe country especially among young people (Adams, Adams and Prassl, 2019). It is seeing
that most of the people are happy with zero hour contracts in which if they have authority to
select their working hours and get safety with an organisation. It analysed that such individual
who are feel anxiety by the fluctuation in working hours so they are likely to be in jobs which
demanded hard work. It is also known as casual agreement which allows organisations to hire or
employee workers without give them guarantee in their work. There are some zero hour contract
which need employees to select any shifts where they feel comfortable and does not hesitate to
come. It is considered as a best practice while implementing in the company.
So, from this entire discussion it has been identified that, Zero hours employment
contract is beneficial for both employees and employer (Dos Santos Ferreira and Ege, 2018).
Because individual can gain flexible working hours and employers will meet their urgent
requirement related to any type of work. Moreover, Zero hour employment contract founded in
United Kingdom.
3

CONCLUSION
From the above discussion it has been concluded that, Zero hour employment contract is
good because it provide working flexibility for both employees as well as employers. Along with
this, worker can take care of their well beings such as family and child by doing work. Most
important thing is that employers cannot pressurise individual to accept any offer as well as for
doing work. It up to the individual they want to do or not. Thus, it has been summarised that zero
hour employment contract is good for employers and employees both.
4

5

6