What employers need to do to manage zero-hours contracts within the law
‘Zero-hours contract’ is not a legal term, and CIPD research has highlighted that a wide range of atypical working arrangements can fall under this umbrella, such as short-hours, shift work or annualised hours contracts. The definitions of ‘typical working relationships’ are provided on the employment status law page.
Zero-hours contracts allow a business to flex its resource on short notice according to customer demand. However, they have come under criticism for the lack of security they provide, which some argue is detrimental to workers or employees working under them. Organisations considering using zero-hours contracts should think about the business rationale, including whether there are other types of flexible working or employment practices that would deliver the same benefits.
All employers should note that the government are proposing changes to zero-hours contracts under the Employment Rights Bill. CIPD members can monitor the progress of these changes on the Employment Rights Bill tracker.
The guide below outlines the current legislation on zero-hours contracts. The guide aims to help employers ensure that they are using zero-hours contracts responsibly, as well as making clear the legal implications of using these contracts.
For convenience, this guidance uses the term ‘employer’ to mean the hiring party in a contract for work, whether the individual being hired is an employee, a worker or a self-employed person.
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