What is a 0-hour contract?
A 0-hour contract does not have a legal definition and can be used for somebody with ‘worker’ or ‘employee’ status.
A 0-hour contract is a type of employment contract which doesn’t state a minimum number of hours, so gives businesses more flexibility in offering work, particularly if the demand for work fluctuates.
The flexibility of 0 set hours should work both ways, with the employee/worker being able to refuse work and the employer having the freedom of whether or not to offer shifts, dependent on business needs.
Pro’s of using a 0-hour contract;
- Cheaper labour costs
- More flexibility for employers – only offer work when needed
Con’s of using a 0-hour contract;
- Reduced control – worker/employee may not be available when needed and are not obliged to be available
- Worker/ employee may be less invested in the business and it’s goals so the return on investment on their wage may be reduced
- Reduced retention – the lack of stability and security may mean you attract people that view the role as a ‘stop gap’ and have other priorities
- Pay and holiday calculations can be more administrative, complicated and time consuming
So, should you use a 0-hour contract?
That’s entirely up to you and your business needs! 0-hour contracts can work really well for some businesses if adopted responsibly and fairly. However, they must be approached with caution and any employer considering using them should seek expert guidance on how to approach this type of employment to ensure they remain confidently compliant.
Why not send a message to megan@yourhrhandled.com to discuss if this could work for you and your business!