Zero Hours Contract
A zero hours contract is an employment agreement where the employer doesn't guarantee any minimum working hours, and the worker isn't obliged to accept offered work.
Zero hours contracts (ZHCs) are agreements where there's no guaranteed minimum hours of work. The employer offers work when available, and the worker can accept or decline. This creates flexibility for both parties but also uncertainty for workers.
Workers on zero hours contracts have the same employment rights as other workers, including the National Minimum Wage, paid annual leave, and protection from discrimination. However, calculating entitlements like holiday pay can be complex due to variable hours.
These contracts are common in hospitality, retail, healthcare, and the gig economy. While they suit some workers who want flexibility, critics argue they create income insecurity and make financial planning difficult.
Key Points
- No guaranteed minimum hours of work
- Worker can refuse offered shifts without penalty
- Same basic employment rights as other workers
- Holiday pay calculated based on hours actually worked
- Exclusivity clauses (preventing other work) are banned
Frequently Asked Questions
Can I have another job while on a zero hours contract?
Yes. Since 2015, exclusivity clauses in zero hours contracts are unenforceable. You're free to work for other employers or have multiple zero hours arrangements.
Do zero hours workers get holiday pay?
Yes. You're entitled to 5.6 weeks' paid holiday per year, calculated based on your average weekly hours over a 52-week reference period.