In 2015, the Campbell Live TV show revealed that major companies like Burger King and McDonald`s, KFC, Starbucks, Pizza Hut, Carl`s Jr. (all under Restaurant Brands), Sky City and Hoyts all use zero-hour contracts to cut costs.  [best source needed] On April 9, Restaurant Brands agreed to abolish zero-hour contracts.  The employer must allow the person to work elsewhere in order to earn income if the person does not provide sufficient hours himself. Organizations considering using zero-hour contracts should think carefully about the business reasons for doing so, including whether there are other types of flexible work or employment practices that would bring the same benefits. If you`re not sure, you can ask your employer how this will affect your contract. A zero-hour contract is suitable for companies that need a flexible supply of labor, as they can cope with changing demands or cannot predict the exact staff they will need at all times. A zero-hour contract is a random agreement between a company and an individual in which the person usually works for the company, but the company does not guarantee fixed hours or future work. Exclusivity clauses in zero-hour contracts have now been banned by the government under the Small Business, Business and Employment Act.
This means that you can`t use clauses that prevent a worker with a zero-hour contract from working for another company, or even try to avoid doing so by asking the employee to ask permission beforehand. An exclusivity clause can be ignored and is therefore unenforceable. Employers should plan ahead and let them know as soon as possible if they are offering work. Those working on a zero-hour contract may have family responsibilities or have studies and may need to plan for childcare or exams. Employers should be transparent about how they offer work, for example, is there a rotation plan? Zero-hour contracts should not be used if there is a better alternative, such as: zero-hour contracts provide basic social security benefits; When hiring for a zero-hour contract, the position must be clearly advertised as such, and the person must be aware that working hours are not guaranteed and that work may be stopped if demand decreases. It`s important to know what kind of contract you have, because when your contract ends, your employer will have to pay you: Pravin Jeyaraj is the communications manager of Zero Hours Justice, a campaign that advocates for fair treatment of zero-hour workers in the UK. He said: “What we`ve seen and what government data shows is that many people with zero-hour contracts work regular or predictable hours over a long period of time. But if work suddenly dries up, they don`t have the same security and labor rights as people on permanent contracts. Work stops immediately and they are not paid, even if they have worked the same shift several times. Discover more traditional employment contracts in our factsheet on employment contracts.
If you work in the gig economy – i.e. you are an independent contractor doing work for a company – if you are technically self-employed, then you are not entitled to vacation or sick pay. With the rise of the gig economy (a way of working where freelancers fill short-term contracts) and the increased demand for flexible work, zero-hour contracts have become much more common over the past decade*. Last year, almost a million people in the UK had zero-hour contracts, according to the ONS. There is a common misconception that people who work under a zero-hour contract have no legal rights. This is not true: zero hours does not mean zero obligations for the employer. If your employment status is that of an employee, even if you work under a zero-hour contract, you are still entitled to: Research and recommendations to improve practices when using zero-hour contracts All zero-hour contract workers should receive a written copy of their terms and conditions. (Blue-collar and white-collar workers are entitled to this right from day one, April 6, 2020).
Employers should also stipulate, in contracts for atypical employees, the notification required by organisations or individuals when they are unable to meet their contractual obligations. If your employment has been continuous and uninterrupted, you build more rights for workers. For example, employers should ensure that all non-standard workers, including zero-hour contract workers, are offered wages and terms and conditions of employment comparable to those of other workers. If you have a zero-hour contract or are considering taking one, you may not be sure of your rights or fear being abused. We consulted with the experts to answer some frequently asked questions. A person benefits from the labour rights associated with their employment status, and people with a zero-hour contract have the employment status of “worker” or “worker”. While the term “zero-hour contract” is mainly used in the UK, casual and part-time workers are employed under similar conditions in many countries. The UK Government`s 2004 and 2011 UK Labour Relations Survey shows that the proportion of workplaces employing employees on zero-hour contracts increased from 4% in 2004 to 8% in 2011. The survey found that larger companies are more likely to use zero-hour contracts. 23% of workplaces with 100 or more employees used zero-hour contracts in 2011, compared with 11% of workplaces with 50 to 99 employees and 6% of workplaces with fewer than 50 employees.  When a new business is created, it may need to build a customer base to do the work, so it must first hire employees on zero-hour contracts in addition to all permanent employees to cope with fluctuating and unpredictable demands.
Proportional means “proportional”, i.e. If a full-time worker works 40 hours per week and has 30 days of paid annual leave, a part-time worker who works 20 hours per week is entitled to 15 days of paid annual leave. All workers are entitled to at least 5.6 weeks of paid annual leave (including public holidays) and, if you are a zero-hour worker, you are entitled to a pro-rata equivalent based on the days or hours you work. In the UK, zero-hour contracts are controversial. British business leaders have backed them, saying they offer a flexible labour market.  They may be suitable for some individuals, such as retirees and students, who want occasional income and are able to be completely flexible about their time of work.  It has been reported that 60% of people on zero-hour contracts are satisfied with the hours worked.  Labour groups and others have raised concerns about the possibility of exploitation and management`s use of such contracts as a tool to reward or reprimand workers for any reasonable or trivial reason. They also raise concerns about how workers can adequately enforce their labour rights or maintain decent labour relations.  To learn more about your workers` rights when working on a zero-hour contract, visit the ACAS website. To be eligible for statutory sickness benefit (SSP), all employees must have a contract, have performed work under their contract, have been ill for more than four consecutive days (even if they did not work on those days), earn an average of £120 per week and give proper notice as determined by the employer. Zero-hour contracts should be a temporary or supportive measure and should not be used as a basis for the main functions of a business or when a person regularly works for an extended period of time.
Employers must clearly indicate to which category of zero-hour workers they belong and take into account the rights and conditions to which they are entitled. Employers should consider whether zero-hour working is appropriate for their business and whether there are other ways to offer flexibility to the organization, such as using annual working hours or other flexible work options. Zero-hour work is suitable for situations where the workload is irregular, where there is no constant need for staff, or where staffing needs are determined by external factors beyond the employer`s control. Zero-hour contracts are rarely suitable for managing the core business, but can be used for unexpected or irregular events such as employee bereavement leave, to provide adequate customer service during peak demand, or in preparation for the opening of a new store. Many companies offer a regular service or product and have a largely predictable schedule or production, so permanent or fixed hourly contracts may be more appropriate. During annual leave, you will be paid based on your average salary for the last 52 weeks. This average only includes the weeks you were paid for, so if you haven`t worked for two weeks, it won`t lower your average. Some zero-hour workers have other sources of income and enjoy the benefits of casual work, such as: the ability to refuse a shift for any reason or being able to work for another company at the same time. Since the term “zero-hour contract” has no specific meaning in the law, organizations should ensure that their zero-hour contracts specify the employment status, rights and obligations of their zero-hour employees.
The proven “Hollywood model” is spreading to other industries. While zero-hour contracts are particularly common in fast food and retail, other industries where workflow is unpredictable, such as the creative industries (advertising, public relations, film, and design), have long employed freelance talent through project contracts to deal with the ups and downs and specific skill requirements of individual projects. Think of a Hollywood movie.