Report: Ethical Considerations of Zero-Hour Contracts and Theories

This report delves into the ethical considerations surrounding zero-hour contracts within a business context. It begins by defining ethics and its importance for organizations, emphasizing the complementary relationship between ethics, sustainability, and positive social impact. The main body of the report provides an overview of zero-hour contracts, detailing their benefits and drawbacks for both employers and employees, as well as the perspectives of trade unions. It then explores relevant ethical theories, including Rawls' theory of justice, utilitarianism, and deontology, to analyze the ethical implications of these contracts. The conclusion summarizes the key findings, arguing that zero-hour contracts can be ethical under certain conditions and can contribute to economic growth. The report recommends that trade unions view these contracts as opportunities for skill development and that individuals consider them positively for economic growth. The report concludes with references to supporting literature.

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
RECOMMENDATIONS.................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Ethics can be defined as the system of moral principals which leaves impact upon
decision of people while they interact with others and lead their their lives (Ethics, 2014). It is
concerned with what is good for an individual and society and this may differs with personal
opinion of an individual. It is important for business organisation and individuals who are
working there to follow ethics. Following ethics at workplace in large and small business
organisations helps in sustainability of business for long term. Following ethical behaviour helps
in maintaining change in a balanced environment. Business organisations aims to run for long
duration of time as goodwill is created with passage of time (Mariappanadar, 2012). Being in the
industry from many years have positive social impact for business. It can be said that ethics,
sustainability and positive social impact is complementary to each other. Approaches related to
zero hours contracts, Rawls theory of justice and utilitarianism and Deontology theories are been
used for clear understanding of the scenarios.
MAIN BODY
Zero hour contract is a type of agreement which is made by two parties that are an
employee and employer, in this employer is not restricted to offer any type of minimum working
hours to the staff members (Zero hour contract, 2019). In this case workforce is also not
obligated to accept any work offered by employer. This type of contract allow workers be free to
sign a contract to be available for work as and when required by employee. There is no particular
number of hours or times of work are specified in this contract. In other words, it can be defined
as a non-legal term which is used to define many different types of casual agreements between
employer and an individual. This type of contracts are beneficial for both the parties involved in
the contract. As employer no need to guarantee the individual any hours of work. Work will be
offered to individual whenever it arises and individual can either accept or reject the work
offered. Employee are benefited as regardless of the number of hours of employment they will be
paid with minimum wages as specified in national wage scheme.
Employees who are employed under Zero hour contract is entitled with all the statutory
rights. Workers together with minimum wages are entitled for paid annual leaves, rest breaks and
protection from any kind of discrimination (McNeill and Moore, 2015). Flexibility gets
generated among employees as work with they considered best suitable for them can be selected.
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Every one is working hard to earn something more and while not getting regular hours at work, it
gives opportunity to find work elsewhere. While working with some organisation it gives
opportunity to apply for more jobs in other organisations through which more experiences can be
gathered. Having a wider variety of job roles to apply for gives better chance to get valuable job.
Employees in UK hail it as the practice of providing flexibility in employment. Providing more
job opportunity and not restricting any individual from selecting any job opportunities will leads
to economic growth at high rate.
Usage of Zero-hour contracts is considered as unfair balance of power in labour market
by trade unions (Usage of zero hour contract, 2017). These contracts gives labours of the
organisation no fixed income and they also miss benefits that are provided to various permanent
employees. This sounds unfair sometimes because employment will be provided as per
requirement of organisations but responsibilities related to job will always be there with the
employees (Osburg and Schmidpeter, 2013). In this contract power to select job is given to
individuals but this power only can be used when work is offered. Organisations who uses these
type of contracts can selects number of individuals whom they wants to hire. This turns out
unfair to individuals who wants to work their but do not get any offer for this. Business
organisations use these contracts for their benefits as cost of employing permanent employees
gets reduced. Workforce when required for seasonal work or through some unexpected contracts
can be done through these workers. But when these workers required more work to earn high
then business organisations do not provided them sufficient work required by them. So, trade
unions see it as unfair balance of powers.
In recent years it has been seen that number of people on zero-hour contract in United
Kingdom has experienced dramatic increase. Despite of contradiction in opinions of employers
and trade unions for Zero-hour contract it is growing at faster rate. One of the most important
reason behind this can be lack of job opportunities available in the nation. It can be seen that
providing job opportunities through Zero-hour contract may be partial to some workers but
together with this it gives boost to economic growth of the nation. Sustainability of these
contracts depends on degree of ethical behaviour that each decision taken under these contracts
provides to all nation.
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Thus, Zero-hour contract is helpful in raising the economic growth for several nations
which will improve the overall economical condition of various countries. So, it can be said that
it is ethical to use Zero hour contract as may benefit the country in the long term.
A theory of Justice is introduced by John Rawls in the year 1971, this theory is highly
focused on problems of distributive (Persons, 2012). It is fully a governmental theory and
addresses all unspecific conception which takes the way in which criminal justice system ought
to behave and function in liberal democracy in to consideration. This theory revolve around the
adaption of two fundamental principals of justice which would guarantee a just and morally
acceptable society (Theory of justice, 2019). It is destined towards liberalism and forms the basis
for what law is enforced and the criminal justice system. In his theory of justice he borrow many
thoughts of gregarious contract theory and envision of a society based on principles of justice is
founded. Rawls identifies that difficulties with the ethical contracts is that they do not permit
justice and equivalence to the existing associates of the society. The introductory principal
provides assurance the right of each person to have the most extended elementary autonomy
congruous with in-dependency of different people (Quarshie, Salmi and Leuschner, 2016).
Second one demonstrates that gregarious and economical positions are to be everyone's
advantage and open to all. As per his concern everyone should share in the wealth of the society
and everyone should receive benefits from the distribution of wealth. In this theory of justice it is
not argued that everyone should be paid same for their work. Rather then this every individual
should have benefit from a fair income and have access to those jobs that pay more. These
principles should ensure that disadvantages are neutralized and everyone receives the same
benefits of justice.
There are two major ethics explanations which attempts to specify and justify moral rules
and principles. These theories are philosophical system and deontological. Philosophical system
ethics dictates that a course of action should be taken by considering the most optimistic result. It
helps in determining right from wrong by focusing on outcomes. As per this explanation most
ethical choice is the one that will produce the greatest good for the superlative number. On the
other hand, deontological ethics is a system that judges whether an action is right or wrong based
on moral code. Utilitarianism is considered as one of the best known and most influential moral
theories. This theory believes that morality is to make life better by increasing the amount of
good things in the world and reducing bad things (Utilitarianism and Deontological, 2009). Each
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action has its positive and negative impact as no cation can be considered fair that gives only
benefits. But having more positive results then negative one the it will be termed as ethical and
fair.
When theories such as Rawls theory of Justice, Utilitarianism and Deontology will be
applied to Zero-hour contracts. Application of justice theory will helps in removing trade union's
thought prospectus as these type of contracts are unfair. As it will be justifiable for each
individual who is working in an organisation to have an equal right to the most extensive basic
liberty compatibility. Opportunities that are provided by various business houses to individuals
provides advantages to everyone attached in same position. As per Rawls theory zero-hour
contracts are justified because it is fair not to provided equal payments to each individual rather
providing them opportunity to be in employment that pays them more. These type of contracts
are considered as ethical through utilitarianism ethical theory (Sestini, 2012). Using contracts of
zero hours gives benefits to individuals of UK advantage at large scale. As employment
opportunity is available to large number of persons and benefits of this is enjoyed by grater
number of persons then providing employment facility to few persons. Following the ethical
theory that provides greater benefits to large number of individuals may results in minimising
benefits of few persons. In this scenario also it will be considered ethical because benefits is
enjoyed by large number of persons (Setó-Pamies and Papaoikonomou, 2016).
Contrast of principles of Utilitarianism and Deontology.
Principles of Utilitarianism and Deontology are related to ethics as well as consequences
of individual actions along with behaviours without considering the results.
Comparison of principles of Utilitarianism and Deontology.
Principle of utilitarianism states that appropriate action must be taken to provide
advantage to numerous people where as Principle of Deontology states the key area of ethics
related to responsibility, commitments and moral duties.
CONCLUSION
From the information that is maintained in the report it is concluded that Zero-hour
contract is highly influenced by ethics, sustainability and social impact. From various theories
that are specified such as Rawls theory of Justice, Utilitarianism and Deontology theory of
ethics. It is not right to agree with the statement that Zero-hour contract is rank exploitation as it
exploits more employees by paying less according to the work they perform. The employees
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struggle to manage the budgets and are being punished by the employers. As giving job
opportunities to large numbers of individuals whenever requirements of their services are needed
creates helps in economic growth of the country. As per theory of justice each individual needs
to be paid same for their work and possess access to job which pays more. Zero-hour contract
acts in the same manner which is considered justifiable by Rawls theory. When valuation of
these contracts is done on ethical basis then also it will be considered as ethical as per
Utilitarianism theory. As greatest good will be available to greatest number of individuals
through zero-hour contracts.
RECOMMENDATIONS
Having a critical analysis of Zero-hour contract and theories related to justice and ethics
it has been recommended to trade unions to see these contracts as opportunities that gives more
chances to enhance skills in different areas. Considering importance of economic growth and
evaluation of different theories on these contracts each individual needs to consider it positive
and favourable for themselves. They should support the employees at each level and allow them
to participate in decision making for the purpose of sharing their valuable ideas. The managers
of Buckingham Palace should engage employees on zero-basis contract for providing the
employees a fair as well as equitable chances to select the working system as per their choice.
Employer also gets chance to employee qualified and experienced employees without spending
much on selection process for employee.
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REFERENCES
Books and Journals
Mariappanadar, S., 2012. Harm of efficiency oriented HRM practices on stakeholders: An
ethical issue for sustainability. Society and Business Review. 7(2). pp.168-184.
McNeill, L. and Moore, R., 2015. Sustainable fashion consumption and the fast fashion
conundrum: fashionable consumers and attitudes to sustainability in clothing choice.
International Journal of Consumer Studies. 39(3). pp.212-222.
Osburg, T. and Schmidpeter, R., 2013. Social innovation. Solutions for a sustainable future.
Persons, O., 2012. Incorporating corporate social responsibility and sustainability into a business
course: a shared experience. Journal of Education for Business. 87(2). pp.63-72.
Quarshie, A. M., Salmi, A. and Leuschner, R., 2016. Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and
business ethics journals. Journal of Purchasing and Supply Management. 22(2). pp.82-
97.
Sestini, F., 2012. Collective awareness platforms: engines for sustainability and ethics. IEEE
Technology and Society Magazine. 31(4). pp.54-62.
Setó-Pamies, D. and Papaoikonomou, E., 2016. A multi-level perspective for the integration of
ethics, corporate social responsibility and sustainability (ECSRS) in management
education. Journal of Business Ethics. 136(3). pp.523-538.
Online
Utilitarianism and Deontological. 2009. [Online]. Available through:
<https://www.equip.org/article/ethics-theories-utilitarianism-vs-deontological-ethics/>
Ethics. 2014. [Online]. Available through:
<http://www.bbc.co.uk/ethics/introduction/intro_1.shtml>
Zero hour contract. 2019. [Online]. Available through:
<https://whatis.techtarget.com/definition/zero-hours-contract>
Usage of zero hour contract. 2017. [Online]. Available through:
<https://www.thesun.co.uk/news/1736691/zero-hours-contracts-uk-workers-employers-
rights/>
Theory of justice. 2019. [Online]. Available through:
<https://1000wordphilosophy.com/2018/07/27/john-rawls-a-theory-of-justice/>
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