Definition
An employment contract where the employer is not obliged to provide a minimum number of working hours, and the worker is not obliged to accept any hours offered. Workers on zero-hours contracts still have employment rights, including holiday pay and protection from discrimination.
UK Context
The Employment Rights Act 1996 and subsequent case law protect zero-hours contract workers. Exclusivity clauses preventing workers from working for other employers are banned. The government has proposed reforms to ban exploitative zero-hours contracts and give workers the right to a regular hours contract.
Best Practices
- Use zero-hours contracts only where genuine flexibility is needed, not as a default arrangement
- Ensure workers understand their rights including holiday pay, SSP, and the right to work for other employers
- Review working patterns regularly and offer fixed-hours contracts to workers with regular schedules
Frequently Asked Questions
Do zero-hours contract workers get holiday pay?
Yes, all workers, including those on zero-hours contracts, are entitled to 5.6 weeks of paid annual leave per year, calculated based on their average hours worked over a 52-week reference period.
Can a worker on a zero-hours contract refuse shifts?
Yes, a zero-hours contract means neither party has an obligation. The worker can refuse any shift offered without penalty. Employers cannot penalise workers for refusing work.