The UK government website, gov.UK, says that zero -hours workers are entitled to statutory annual leave and must receive the national minimum wage, just like any other employee. According to ACAS, employers are also still responsible for their employees’ health and safety while they’re working on this type of contract and are required to give them adequate rest breaks and take tax and National Insurance deductions from their pay.
It should include information about when or how planned work might be cancelled and explain how holiday and sick pay are calculated. It should also include information about when employees will be paid, what documentation they need to submit in order to demonstrate they have worked the hours, and whether their travel or expenses will be reimbursed.
Released in December 2019 found 81 per cent of workers born in the UK were satisfied with the number of hours they were working and did not consider themselves to be underemployed. Pros ConsFlexibleLow stability for employees may mean they are less loyal to their employers Good for use in retail industries or for employing people on an ad hoc basisLower commitment: You can’t stop zero -hours workers from looking for work or accepting work from another employer Good for employers who need different staffing levels and different times of year, often on short notice zero -hours contract doesn’t mean zero admin: You still need to pay statutory annual leave, minimum wage and take care of their health and safety at workout don’t have to spend money on staff wages if you don’t need themEmployees still need to be paid for being on call and for work-related travel, which may increase overall costs Good for people who want to work part-time or work on flexible homeworkers who don’t understand the nature of a zero -hours contract can become dissatisfied with the infrequent work, affecting employee morale Good for people (such as older employees) who just want to ‘keep their hand in’ or keep themselves active and engaged with workEmployers’ use of these contracts can be open to accusations of employer bias or favoritism: especially if a supervisor prioritizes certain workers over others The use of zero -hours contracts has been exposed to criticism in the past.
It provided evidence that most of the UK’s workers at the time felt secure, with most people entering non-permanent work out of choice rather than necessity. Now that we are entering a new phase of life after the initial COVID-19 shock, the very nature of work, workers, employees and the economy has changed.
When the economy starts to rebuild itself zero -hours contracts may very well prove to be a necessity for many businesses and many workers who have no other work. Person organizes your HR documents centrally to make sure you have all the information you need at your fingertips at any time.
Think of zero hours contracts and the 2016 Sports Direct scandal may well spring to mind. Big brand names like Uber and Deliveroo have also come under scrutiny recently for the exploitation of casual laborers, and zero hours contracts were a key topic of discussion during the 2018 party conferences with the Labour Party proposing to ban them altogether.
With all this press coverage over recent years, you might be feeling uneasy about using these contracts in your business. We take a look at the pros and cons of zero hours contracts to help you make an informed decision about using them.
We also share some tips on using them correctly and successfully, and suggest some alternative options if zero hours contracts aren’t quite the right fit for you. ‘ Zero hours contract’ is not a set legal term and there’s no universally accepted model.
• Flexibility: If the workload for your business fluctuates, you might need more staff during certain seasons or to cover events. • Growth: If you’re a new business, or experimenting in new market areas, you may be unsure what the volume of work will look like.
People classed as ‘workers’ rather than ‘employees’ have a more straight-forward financial relationship with their employer and are not entitled to additional rights such as maternity pay, statutory minimum notice periods and redundancy payments. • Foot in the door / Keeping a hand in: Zero hours contracts are a good way for inexperienced workers to gain useful grounding in a new industry, and may lead to permanent contracts and more reliable employment.
Several companies have been called out for placing unreasonable demands on zero hours workers’ availability at short notice. • Unpredictability for the worker: It can be tough to do any kind of financial planning on a zero hours contract, creating a state of permanent uncertainty.
In this situation they have the right to claim unfair dismissal from day one of their contract. In most cases, those working zero hours contracts will be classified as ‘workers’ rather than ‘employees’.
• protection from unfair dismissal • the statutory minimum notice of intention to terminate employment, • redundancy pay • the right to request flexible working • unpaid time off to care for defendants • protection in the event of a buyout or change of employer. Zero hours contracts shouldn’t pose a risk to a business if used correctly, with respect for the worker’s entitlements.
The biggest risk is incorrectly classifying someone as a worker, and treating them as such, when they are in fact an employee in the eyes of the law. • Offering annualized hours contracts if peaks in demand are known across a year.
If you need advice on determining which types of employment contracts are best for your business, our HR consultants can help. At the end of the spectrum, zero -hours contract somehow favors employers as the workers are expected to accept the work whenever offered.
When the law was first introduced, workers were not allowed to take on work from a different employer, and as a result, they were earning less than the minimum wage. The legislation requires some change such as the situation in which a worker is approached by multiple employers at the same time.
Workers sometimes have no idea about how many hours they will be working and the wages that they will be earning for a specific task. Diana Cover is a staff writer at The HR Digest, based in New York.
Diana covers HR news, corporate culture, employee benefits, compensation, and leadership. She loves writing HR success stories of individuals who inspire the world.
She’s keen on political science and entertains her readers by covering usual workplace tactics. The ‘Alphabet Workers Union’ aims to tackle ongoing issues like pay disparity, retaliation and controversial government contracts.
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As part of our research, we interviewed 35 zero -hours contract workers and heard how this precarious employment situation was affecting their career prospects. When I first took the job on I went in to see the principal of the college and I said I’d really like to find out what the promotion possibilities are as I’d really like to be on a permanent contract at some point in the future.
Zero hours contracts don’t lend themselves to career development at all, because it’s very rarely you have an appraisal or probationary meeting or anything like that. Workers also often lack the discretion and autonomy to contribute to the decision-making of the business or organization and feel unable to give feedback on job satisfaction.
This is particularly important given that, more generally, a lack of career progression is one of the key reasons most employees leave their job. And Labor’s plans to rid the UK of zero -hours contracts is one step closer to ensuring every worker gets a guaranteed number of hours each week, which will allow more people to gain security and fulfillment from their day-to-day working lives.
Content perspective is the underlying human needs that help to understand how the needs can be satisfied in the work place. The process perspective understands how people seek the rewards in the workplace.
Frederick Taylor said that employees are motivated by rewards, money. The physiological need is the basic need which is food and shelter and once this is met the employee is motivated to achieve the next need.
However, there are the risk of favoritism as shift would only be given out to staff that did not challenge the managers. Content perspective is the underlying human needs that help to understand how the needs can be satisfied in the work place.
The reinforcement perspective understands how to change the employee’s behaviors through rewards or punishment. Frederick Taylor said that employees are motivated by rewards, money.