Zero Hours Contracts – Dispelling the myths

In basic terms a Zero Hours contract is simple, it is where the employer is not obliged to guarantee a minimum number of working hours but the employee is not obliged to accept any work offered.

 

There has been a lot of bad publicity about the use of zero hours contracts where it is perhaps deemed that employers are misusing the flexible nature of this agreement and in May 2015 there were new regulations which prevent employers enforcing exclusivity clauses in these contract, in effect this was preventing employees from being able to work for other employers.

 

Why use a zero hours contract?

 

It is fair to say the most appropriate use of a zero hours contract is where the agreement is truly a casual / flexible arrangement. This may be to cover seasonal peaks, short term peaks in business or where companies offer ‘bank’ staff.

 

What are the alternatives?

 

Businesses may choose to look at other flexible means of meeting fluctuating staffing demands such as the use of recruitment agencies to provide temporary staff. We used such an arrangement for one of our manufacturing clients that see’s seasonal peaks near Christmas and were able to increase staff by 25 full time workers for a matter of weeks and had the administration and arrangement of these workers managed by the agency, West Riding Recruitment.

 

You may also find a fixed term contract more appropriate if you need the commitment of the employees to work consistently over hours you can control.

 

What are the drawbacks?

 

Zero hours contracts can be onerous to administer. Zero hours workers accrue holidays as they work, like any employ, but the recording of this can be more intensive due to the flexible nature of the agreement. If there is deemed to be a break in employment the employer needs to be paying any accrued holiday entitlement and so this may cause more work on payroll. There is also the fact that when you may most need to rely upon zero hour workers then they could refuse the work leaving your business short staffed.

 

What are the benefits?

 

This is a truly flexible arrangement which can give a business the additional resource without the commitment of permanent employment which may be a great option for businesses experiencing rapid growth or seasonal peaks.

 

For employees this is a great way to increase skills and gain employment experience and now allows the flexibility to work for more than one employer on this type of arrangement.

 

Still unsure?

 

It is important for any business to really understand what they need to achieve for their business and consider what type of working arrangement will best suits.

 

We are happy to provide our expert opinion with our free consultation to discuss this or any other employment related matters, contact us on 0844 8797286 if you would like to discuss.