Zero hours contracts explained

Zero hours contracts are one of the most talked about and least understood parts of the modern jobs market. To some they mean welcome flexibility, to others they mean not knowing how much they will earn next week. The truth is they suit some people and situations well and others badly. Knowing exactly how they work, and what rights come with them, lets you decide with your eyes open.

What a zero hours contract is

A zero hours contract is an agreement where the employer does not guarantee you any minimum number of hours, and you are usually not obliged to accept the work you are offered. You are paid only for the hours you actually work. They are common in hospitality, care, retail, events and seasonal work, where demand rises and falls and employers want a pool of staff they can call on.

Your rights on a zero hours contract

A common myth is that zero hours workers have no rights. That is wrong. Whether you are classed as a worker or an employee, you are entitled to:

• At least the National Minimum Wage or National Living Wage for every hour you work.
• Paid holiday, which builds up based on the hours you actually work, at 5.6 weeks a year pro rata.
• Rest breaks and protection under working time rules.
• Protection from discrimination.
• Statutory Sick Pay, if your earnings meet the qualifying threshold.

Exclusivity clauses are banned

One important protection: your employer cannot stop you working elsewhere. Exclusivity clauses in zero hours contracts, which tried to tie you to one employer while guaranteeing you nothing, are unenforceable by law. If you are on a zero hours contract, you are free to take work from more than one employer, which is often the sensible way to build a full income.

The advantages

• Genuine flexibility to work around study, family, another job or health.
• A way into a workplace that can lead to regular hours or a permanent role.
• Variety, if you like different shifts, sites or types of work.
• Extra income on top of another job, on your own terms.

The drawbacks

• Unpredictable income, which makes budgeting and getting credit or a mortgage harder.
• No guaranteed hours, so a quiet week hits your wages directly.
• The pressure to say yes to shifts you would rather decline, for fear of being offered fewer next time.
• Less certainty around holidays and time off planning.

Your right to ask for more predictable hours

The rules in this area have been tightening. If you regularly work more hours than your contract guarantees, it is worth asking your employer about moving to a contract that reflects your actual hours. Many will agree, because a reliable worker who wants steady hours is valuable to them too. Keep a record of the hours you actually work, which strengthens any such request.

Is a zero hours contract right for you?

It comes down to what you need from work. If you value flexibility above certainty, are fitting work around other commitments, or want a foot in the door somewhere, a zero hours contract can genuinely suit you. If you rely on a steady, predictable income to pay fixed bills, the unpredictability may cause more stress than the flexibility is worth. Understand your rights, keep your options open across more than one employer, and choose the arrangement that fits the life you are trying to build.