Analysis has found that 910,000 workers in the UK are currently employed on a zero hours contracts – this is a record high. These types of contracts have suffered reputational damage over the past few years as some claim these exploit workers because workers are either not truly zero hours or are placed in lower paid and less secure employment as a result.
One of the most controversial aspects of zero hours contracts used to be that these contained exclusivity clauses; essentially workers could not accept work with other businesses and, if they did, they would be dismissed. This element was made unlawful in 2015 and workers are now legally protected from any detriment or dismissal where they breach these clauses. This was an important step to ensure workers could seek extra work when they were not required by their original employer.
Using zero hours contracts when these are necessary will not raise any negative connotations for your clients. The main advantage of these contracts are that they flexible for both parties. This will help employers who face fluctuating customer demand to manage staffing levels so they are not paying unnecessarily for staff that are not needed. This is often crucial for starting companies who have limited cash flow. They can also be used to cover increases in demand due to seasonal events. For workers who need flexibility in their working life for numerous reasons these contracts can be a positive way for them to achieve a balance.
Some larger companies have made the news recently for banning zero hours contracts across their business, however, this does not mean that all workers are placed on full time permanent contracts. Instead, some form of guaranteed hours will be offered to the worker, usually a small number of hours, with the worker still expected to be flexible and work other hours.
There are calls for the government to completely ban the use of these contracts, as has happened in New Zealand, but used correctly, legally and reasonably there is real need for contracts such as these to provide flexibility for employers and employees.
