Patisserie Valerie: A Management Report on Zero Hour Contracts

This report provides a management perspective on Zero Hour Contracts, using Patisserie Valerie as a case study. It examines the aims, legal regulations, costs, and benefits associated with these contracts within the organization. The report covers the nature of zero-hour contracts, highlighting their flexibility for both employers and employees, while also addressing potential drawbacks. It delves into the legal obligations Patisserie Valerie must adhere to when employing workers under such contracts, including statutory annual leave and minimum wage requirements. Furthermore, the report assesses the financial implications, weighing the cost savings for the employer against potential expenses related to fluctuating labor demands. The analysis concludes with recommendations for Patisserie Valerie, suggesting a balanced approach that minimizes the negative impacts of zero-hour contracts on employee well-being and promotes a more stable and engaged workforce, potentially through offering more permanent positions and ensuring fair treatment regarding sick leave and job security. This assignment is available on Desklib, a platform providing study tools and resources for students.

Report

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Zero Hour Contract.....................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Zero hour contract refers to the term which is used to describe a type of employment
contract between an employee and an employer where the employer is not obliged to provide any
minimum number of working hours to the employee. In the present report, Patisserie Valerie is
taken into consideration(Arlinghaus and et.al., 2019). Patisserie Valerie is basically the chain of
cafes which operates in the United Kingdom country. This chain specialises in cakes and its
menu which include continental breakfasts, lunches, teas, coffees. In the year of 2020, Causeway
Capital got merged with Patisserie Valerie chain with its bakers and Baristas business. The
present report will cover discussion about management report on Zero hour contract and apply it
to the chosen organisation. In addition to this the report will cover analysis about aims, legal
regulations and costs and benefits for the organisation which deals with this issue. Moreover the
report will also cover discussion about suggested recommendations for the particular issue.
MAIN BODY
Zero Hour Contract
Zero hour contract is basically a casual agreement between the business and an individual
where the individual works for the business but does not guarantee about any set hours or future
work as well. In such type of contract worker is not required to accept any employment hours
that has been offered. From the perspective of employers, zero hour contracts means that to save
money into positive manner. In terms of worker, these contract can offer greater flexibility and
also ideal work life balance as well. There are different kinds of zero hour contracts and
somewhere individual defined it into legal manner or more commonly they are worker. Zero
hour contracts generally used in those conditions where employer wish to engage the employee
on casual basis and would benefit from the flexibilit6y of not promising a particular number of
hours(Dowler and Lambie-Mumford., 2015). This kind of contracts is suitable for those
businesses who need a flexible supply of workers because they may experience changing
demands. Zero hour contracts basically act as temporary back up measure and should not be
relied on running the main functions of a business. These contracts should not be used where
they have better alternatives such as part time or full time fixed contract, overtime for existing
staff members, using agency staff on temporary basis.

The main aim of Patisserie Valerie is to provide various kind of products with good
quality to their customers which includes breakfasts, lunches, teas and coffees as well. The
company has also expanded itself in the further years with successful food and drink concepts
which includes Pizza Express, Strada and Giraffe. According to the latest information, its
fourteen stores got closed and Causeway has planned to reposition itself as the premium brand
into the market(Hall., 2016). Their vision is that to expand themselves with seventy five chain in
stronger manner in order to focus its attention outside London. The basic aim of zero hour
contract is that it help companies to ensure about the clarity and effective resolution of disputes
in the future. Such type of contract also provides a certain kind of incentive for zero hour
employee for considering freelancing. Under this company, zero hour contract can be applied
into successful manner because the type of work which has been done by the employees of
company does not require particular hours of working. This kind of work can be finished within
different time frameworks according to demand of their customers. So these food products
sometimes can be prepared within shorter period of time or sometimes it takes longer period of
time. So their kind of working is such type where employer does not require to fix hours of
working of their employees. In this manner, Zero hour contracts can be applied into successful
manner.
There are certain regulations related to zero hour contract which Patisserie Valerie needs
to be applied for their workers and at organisational level. Under this issue, company is entitled
to provide their zero hour workers with statutory annual leave and national minimum wage in the
same way as regular workers. It is compulsory that company can't restrict their workers to get
work anywhere else and they can ignore this clause in their contract if it bans them from looking
for work(Hintermann., 2016). Under this contract of legal regulations, company has to think in a
careful manner about the business rationale for doing this which include whether there are other
types of flexible working or employment practices which delivers the same benefits. Under
regulations of Zero hour contract, the employers of Patisserie Valerie employer should be clear
about what type of arrangements will suit them.
In addition to this, it is important to understand the meaning of terms of their
responsibilities as an employer and the employment rights of individuals engaged in this way. It

is necessary for employers of Patisserie Valerie to ensure that the written contracts contains
provisions which set out the status, rights and obligations.
There are certain costs which Patisserie Valerie has to bear while dealing with this issue.
As Zero hour contract act as saving for employer because they have to pay according to their
working hours(Hu., 2020). Under this issue, for different employees or workers an organisation
has to pay according to demand of worker so somewhere they have to bear higher cost on the
basis of urgent requirement. So according to small activities of tasks of workers an organisation
has to bear cost for it for a limited period of time so up to certain extent company has to bear
higher cost. In general manner, under this issue they have to pay only minimum national wage
and national living wage. They have to only pay for work-related travel and also paid for being
on call for business purpose. So company has not to bear a large cost for it while dealing with
this issue.
In context to Patisserie Valerie company, their workers have to work for limited period
of time and according to the orders of their customers and according to seasonal demand they
have to work for it. The kind of products which is produced by the workers does not have
generally fixed period of time to prepare it so their working hours fluctuate accordingly so
employer have to pay a limited amount to their workers. So this amount is not very large which
Patisserie Valerie can't bear for it. In the overall manner, company has not to bear a very large
amount of cost under this Zero hour contract. Although it is beneficial for the employer as
compared to employees of an organisation.
There are certain benefits that an organisation has while dealing with this zero hour
contract. The zero hour contract are one of the best way of doing the work into quicker and
effective manner (Peticca-Harris and et.al., 2020). The advantage of zero hour contract is that
employees can build their own space on fast pace manner in the busy schedule. This contract
also provide flexibility into excellent manner to their employers specially in that case when
people want to achieve something but also require extra funds then they go for Zero Hour deals.
Under this contract, an organisation can easily manage to work when its about increase in
demand on the sudden basis.
In context to Patisserie Valerie, when its about different opportunities for recruitment
then employers undoubtedly look for salary. The company can hire people based on zero hour

contract which act as cheaper form which results into the less usage of funding(Wood and
Michaelides., 2016).This contract is also beneficial for Patisserie Valerie company where if any
staff is on the leave then an individual can easily cope up with the absence made by the existing
staff members. So these are the benefits of zero hour contract which is beneficial for Patisserie
Valerie company into the context of proper working of an organisation.
It has been recommended that zero hour contract is somewhere beneficial for the
company but it somewhere required that to reduce at organisational level. As zero hour contract
is beneficial for the organisation in order to save their cost but zero hour contract sometimes
create challenges for an organisational growth and development. In order to remove this contract,
an organisation, start-up companies or small companies have to recruit employees or workers on
permanent basis. There are certain issues related to zero hour contract which basically includes
financial and social insecurity due to which it becomes difficult for the workers to work without
any stress, anxiety and depression as well. They always have fear of losing the job because on
the basis oftheir performance the company can run temselves into appropriate manner. They
have to face issues related with sick leaves and there is also no provision in the case of ill
conditions. With reference to Patisserie Valerie, workers do not feel satisfied from their job and
they always have concern about their mental health fitness because they have fear of losing the
job because it is not on permanent basis. When there is no work then they don’t receive any
payment that’s why its important that the workers feel satisfied and happy in their job role. In
context to Patisserie Valerie company, the zero hour contract isssues can be resolved through
giving an agreemnt in the written format to their workers in terms of their job security and wages
as well so that they can work without anxiety, stress and depression as well. It has been
recommended that they have to provide appropriate leaves in the case of sick or ill conditions so
that they can build strong relationship with their employer and workers also feel satisfied from
their job as well. An organisation has to fixed the salaries of employees so that conflicts can't be
arises from future perspective (Zhou and Huang., 2016).By removing zero hour contract or
minimising the use of zero hour contract is beneficial for further growth and development of an
organisation. It has been recommended that an employee or worker can get out of zero hour
contract without having no statutory rights to notice periods. An employer can terminate an
employee or worker without notice and can also leave without any warning. Zero hour contract
can be reduced at organisational level through appointing employees for fixed period of time and

it has been recommended that notice period should be made mandatory for employees or workers
so that they can't left the organisation on immediate basis.
CONCLUSION
The above stated report concludes that zero hour contract plays a very important role at
organisational level. It has been concluded that there are certain aims of zero hour contract at
organisational level so that they can resolve the conflicts which comes into the future terms. It
has been determined that there are certain legal regulations which needs to be followed by an
organisation into appropriate manner so that employees or workers and employers do not take it
on the lighter perspective. It has been analysed that there are certain costs which an organisation
has to bear during this contract or while dealing with this issue. Under this zero hour contract,
these costs somewhere act as burden for the company for their further growth and development
as well. There are certain benefits which an employer or an organisation possess during this zero
hour contract. These benefits are impactful for an organisation and for employees it act as
support system for their best outcomes at organisational level.

REFERENCES
Books and Journals
Arlinghaus and et.al., 2019. Working Time Society consensus statements: Evidence-based
effects of shift work and non-standard working hours on workers, family and
community. Industrial health, 57(2), pp.184-200.
Dowler, E. and Lambie-Mumford, H., 2015. How can households eat in austerity? Challenges
for social policy in the UK. Social Policy and Society, 14(3), pp.417-428.
Hall, G., 2016. The uberfication of the university. U of Minnesota Press.
Hintermann, B., 2016. Pass-through of CO2 emission costs to hourly electricity prices in
Germany. Journal of the Association of Environmental and Resource Economists, 3(4),
pp.857-891.
Hu, Y., 2020. Intersecting ethnic and native–migrant inequalities in the economic impact of the
COVID-19 pandemic in the UK. Research in Social Stratification and Mobility, 68,
p.100528.
Peticca-Harris and et.al., 2020. Postcapitalist precarious work and those in the ‘drivers’ seat:
Exploring the motivations and lived experiences of Uber drivers in
Canada. Organization, 27(1), pp.36-59.
Wood, S. J. and Michaelides, G., 2016. Challenge and hindrance stressors and wellbeing-based
work–nonwork interference: A diary study of portfolio workers. Human
Relations, 69(1), pp.111-138.
Zhou, W. and Huang, W., 2016. Contract designs for energy-saving product development in a
monopoly. European Journal of Operational Research, 250(3), pp.902-913.