Zero Hour Contracts

The Department for Business, Innovation and Skills has produced a guide for employers on zero hour contracts. It explains the difference between appropriate and inappropriate use of such contracts, how they work and best practice on implementing zero hour contracts as well as alternatives to zero hour contracts. The Guide highlights the following

• The National Minimum Wage applies to all workers and employees

• A zero hours contract may be used appropriately in a new business, for example where work is seasonal, in cases of unexpected sickness, for special events or where a new service is being tested.

• Such contracts can allow flexibility, however they should not be used as an alternative to a permanent arrangement

• Such contracts may not be appropriate where an individual will work regular hours over a continuous period of time. The Guide states that in such situations, a part time or fixed term contract may be more appropriate.

• Employers should consider alternatives to zero hours contracts, such as offering permanent staff overtime, recruiting part time staff or fixed term staff etc.