Detailed Report on Zero Hour Contracts and HR Practices at TESCO

This report delves into the topic of zero-hour contracts, focusing on their implementation and impact within the context of TESCO. It begins with an abstract outlining the core content, followed by an introduction that defines zero-hour contracts as agreements with no specified working hours. The report then provides an overview of TESCO, highlighting its use of various contract types, including full-time, part-time, and fixed-term contracts, alongside zero-hour contracts. A literature review explores the benefits and drawbacks of these contracts, referencing ACAS, CIPD, TUC, ILO, and the Low Pay Commission. The report also discusses HR practices and provides recommendations for TESCO, emphasizing the importance of legal compliance, transparency, and the adoption of diverse contract types. The conclusion reiterates the cost-saving benefits of zero-hour contracts while stressing the need for legal adherence and employee retention strategies. The report is based on the provided assignment solution submitted by a student to be published on Desklib, a platform offering AI-based study tools for students.

Introduction to Human
Resource Management

ABSTRACT
The report includes detail description on the topic of zero hour contract. It refers to the contract
where both employees and employer enter into an agreement where no specific time is
mentioned to work. In addition to this, various types of contract are also discussed in this report.
TESCO adopts various strategies as well as HR practices so that these contracts will be
implemented in an effective manner within the organization. Furthermore, the laws along with
standards of human right commission are developed so that all the functions will be performed in
an effective and efficient manner.

Table of Contents
ABSTRACT.....................................................................................................................................2
Introduction......................................................................................................................................4
About the company..........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
HR Practices.....................................................................................................................................6
RECOMMENDATIONS.................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Books& journals.....................................................................................................................9

Introduction
In the present report, the topic which is adopted to complete the whole project is zero
hour contract. In simple words zero-hour contract refers to a kind of agreement among
employees and employer. In this contract, employee need to sign it which make them available
for work whenever they requires (Angelov, Johansson and Lindahl, 2016). In short, there is no
particular time or hour are specified for them. It has been analysed that within United Kingdom,
under an act which is National Minimum Wage Act,1998 employees work under zero-hour
contract where they operates business functions in stand-by time, on-call time and get minimum
payment under national minimum wage for hours worked. In this report various types of
contract are going to be discussed in detail which are commonly used by the management team
of an organization.
About the company
In this report, chosen organisation is TESCO in order to increase the understanding on the
topic of zero- hour contract. It is a multinational corporations mainly deals in groceries was
founded in the year 1919 by Jack Cohen. It has been identified that TESCO currently having
around 6800 outlets across the whole wide world. In addition to this, it is also said that
employees of the company is 4,00,000 number and is positioned itself in 3rd position in the
world. TESCO often make zero hour contract with their employees so that they can hire them
when there is sufficient amount of work (Bender and Pigeyre, 2016). This as a result help in
reducing excessive cost of the company. In addition to this, there are various other contracts used
by management team of the company includes fix contract, full time contract, part time contract,
temporary contract and many more.
LITERATURE REVIEW
As per the view point of Elias Jahshan, 2018, it has been said that zero hour contract is
one of the most essential agreement adopted by large number of organizations in order to reduce
extra cost of the company. It is a money saver method helps management team in various ways.
In simple words contract is a written document or agreement signed between employees and
employer while doing business operations within the workplace. There are various types of
contract which is adopted by an organization according to their requirements and

demands (). These types of agreement or contract includes full time, temporary and
part time as well as fix contract. Full time contract refers to the agreement which is
offered by the employer for permanent positions and generally there salary and
working hours are pre defined in the agreement. Along with this it has been identified
that there are different benefits gain by full time employee such as pension benefits,
parental leave allowance and many more. Along with this, such types of employees
need to complete 35+ working hours within a week which is essential for them. This
is the contract which is quite beneficial for both employees and employer. On the
other hand, in context of part-time contract, individual who sign such agreement need to work
for few hours as compared to full time staff members (). As a result they get less salary,
remuneration, benefits as compared to the employees who work permanently within the
workplace. Apart from this, sometimes they act similar to the employees comes under full time
contract . It is very essential for the management team to clearly define working hours in a week,
salary and other benefits in clear manner so that there might not be any kind of disputes and
conflict arise among staff members. There are some benefits included in the part time contract
such as flexible working hour, opportunities to work in different ways and many more. For
example, managers of TESCO adopt both these contracts as per their working conditions and
requirements so that they can easily beat the competition level available at the marketplace.
On the basis of views of Gascoigne, 2019, apart from full time and part time contract
there are various other agreements adopted by management team of TESCO. One of the most
essential contract is fixed time agreement which last for particular time period which need to be
set by the management team of the company in advance. In some cases, fix time contract does
not include any fix time period but ends when a specific task will be accomplished effectively.
Sometimes these contracts last long period of time and requires lot of details so that there might
not be any kind of confusion arise within the mind of individual. amount of time, which has
been set and agreed in advance (Hutchinson, Mack and Verhoeven, 2017). On the other hand if
talk about temporary contract managers provide such contract which are not expected to become
permanent in near future. Generally these contracts have some specific end date which can be
changed as per the task. All these contracts help management team of the company in reducing
their extra cost and leads to increase their overall profitability and revenue at the marketplace.
This as a result assist in accomplishing organizational goals and objectives in an effective and
appropriate manner as well as within stipulated time frame.
HR Practices
ACAS: It refers to a Advisory, Conciliation & Arbitration service formulated by the
government of UK. It has been identified that the main aim behind this is to enhance the overall
working or efficiency of the staff members. In the present context of TESCO, top management

team of the company adopt such practice so that effective working life of individuals will be
maintained. For this, various types of benefits are provided to the staff members which are of
permanent in nature includes bonus, rewards, incentive, promotions and many more (Kennedy,
and et. Al., 2017).
CIPD: It has been said that the chartered institute of personnel and development is an
association for Human Resource Management professionals. It is the institution located within
the marketplace of UK, London. Main aim of CIPD is the overall development and growth of
workforce and individual working within the organization. In the present context of TESCO,
management team of the company provide training and development session to the staff
members on a regular basis as per the guidance of CIPD institution. Primary motive behind such
type of training sessions is to develop professionalism among individuals working in the
company. Along with this such type of training sessions helps in increasing the overall
knowledge and skills of individuals which leads to raise the overall profitability of the company
at the marketplace. In addition to this, as per the contract different types of individuals will be
provided training sessions according to their work and agreement (Kim, 2015).
TUC: It defines as a national trade union centre within England. The primary motive of
such trade union is to develop, grow as well as take stand for each and every staff member
working within the organization. Along with this, they work in order to bring equality, fair and
standardized so that every worker feel motivated and encouraged. In reference to the present
company which is TESCO, there is a trade union which help in providing all the rights and
opportunities to the employees and maintaining positive working environment within the
company.
ILO: In UN, International labour organisation is define as a first agency. The main
objective of such agencies is to develop effective labour standards so that fair and positive
working environment will be provided to the employees working within the organization. It is
the factor where three bodies such as employees, government as well as employers together
formulate labour standards so that each and every individual feel motivated while working in the
company (Mihăilă, 2016).
Low pay commission: It is an independent body developed in the year 1997 within

United Kingdom. This institution provide guidance to the organisation in order to provide
minimum wage as well as living wage. In the present context of TESCO, the top management
authorities adopt and follow all the strategies, policies and rules of low pay commission so that
each individual will get necessary wage as per their right. This as a result bring positivity and
motivation among the staff members which leads to increase their overall profitability and
revenue at the marketplace. Apart from this, different types of contract includes various kinds of
wages which is provided by the management team of the company to their staff members
(Popescu, 2016).
RECOMMENDATIONS
With the help of above analysis it has been said that there are various suggestions given
to the management team of TESCO. If all these recommendations used by them in an effective
manner then company will be able to perform their functionality in an appropriate manner. In the
present context of zero hour contract some of the most essential recommendations are as follows:
 First of all it is very necessary for the management team of TESCO that they must
develop contract in an effective manner and communicate all the information to each
other so that positive outcome will be produced.
 In addition to this, management team of TESCO need to follow all the legal policies,
rules and standards in an effective manner which is National Minimum Wage Act,1998.
This will help them in order to maintain their sustainability at the competitive
marketplace in an appropriate manner (Rimmer, 2016).
 Apart from this, managers need to maintain transparency within their remuneration,
salary and wages so that they will be able to retain their potential employees for a long
period of time within their workplace.
 Furthermore, managers need to adopt various types of contract such as fix, flexible,
temporary and many more as per the requirements of organization. This will help them in
order to attract new and fresh talent towards the organisation which assist them in
attaining desired goals and objectives (Kim, 2015).

CONCLUSION
With the help of above mentioned report, it has been concluded that zero hour contract
helps in reducing excessive cost of the company as they allot work to their staff members only
when it is required. For an employer, zero-hours contracts generally means saving money. The
business organisation does not provide any kind of benefits to these employees as compared to full-
time employees. In addition to this, various types of legal policies and strategies need to be
developed by management team so that employees will be retained for a longer period of time.
Some of these policies includes ACAS, ILO and many more so that managers can maintain their
sustainability at the marketplace in an effective manner.

REFERENCES
Books& journals
Angelov, N., Johansson, P. and Lindahl, E., 2016. Parenthood and the gender gap in
pay. Journal of Labor Economics. 34(3). pp.545-579.
Bender, A. F. and Pigeyre, F., 2016. Job evaluation and gender pay equity: a French
example. Equality, Diversity and Inclusion: An International Journal. 35(4). pp.267-279.
Hutchinson, M., Mack, J. and Verhoeven, P., 2017. Women in leadership: an analysis of the
gender pay gap in ASX‐listed firms. Accounting & Finance. 57(3). pp.789-813.
Kennedy, T., and et. Al., 2017. Reducing gender wage inequality increases economic prosperity
for all: Insights from Australia. Economic Analysis and Policy. 55. pp.14-24.
Kim, M., 2015. Pay secrecy and the gender wage gap in the United States. Industrial Relations:
A Journal of Economy and Society. 54(4). pp.648-667.
Mihăilă, R., 2016. Female labor force participation and gender wage discrimination. Journal of
Research in Gender Studies.6(1). pp.262-268.
Popescu, G. H., 2016. Gender, Work, and Wages: Patterns of Female Participation in the Labor
Market. Journal of Self-Governance and Management Economics. 4(1). pp.128-134.
Rimmer, A., 2016. Five facts about the gender pay gap in UK medicine.