A zero-hour contract is a type of employment contract in which the employer is not obliged to provide any minimum number of working hours to the employee. The employee may sign an agreement to be available for work as and when required, so that no particular number of hours or times of work are specified. The term ‘zero-hour contract’ has no legal definition, and the terms of a zero-hour contract will vary per organization.

Zero-hour contracts are usually for ‘piece work’ or ‘on call’ work, for example for interpreters. They offer employers extreme flexibility when scheduling their workforce, especially if they only need a temporary boost in workers. Employers using zero-hours contracts include Sports Direct, McDonalds, Boots, Buckingham Palace, and The National Trust.

Workers have the right to accept or decline the hours offered, but if they decide not to work, they wont be paid. If you sign a zero-hour contract, youll be entitled to the following benefits: guaranteed national minimum wage pay and holiday leave and holiday pay. However, zero-hour contract workers are not considered permanent employees and do not receive the same entitlements as regular workers.

Zero-hour contracts are controversial in the UK, with trade unions, other worker bodies, and newspapers describing them as an exploitation of labor. Some of the cons of a zero-hour contract include not having a steady or reliable income, abuse from employers trying to take advantage of your flexibility, not getting any hours from your employer, no contribution to a pension, getting only a few-hours notice ahead of your scheduled shift, no severance pay if you are let go, trouble getting a mortgage or opening a credit card, and difficulty arranging childcare.

Overall, employers benefit more from these types of contracts than workers. However, it is argued that they may suit some people such as retirees and students who want occasional earnings and are able to be entirely flexible about when they work.