Zero hours contracts – Scourge or saviour?

Recent media coverage may give you the impression that “zero hours” contracts are a mighty evil, allowing powerful employers to exploit downtrodden workers.  The announcement of a review by Vince Cable just adds to the controversy.

However, for many smaller employers, these contracts can give them the confidence to take on staff, knowing that they do not have to commit to providing a set number of hours per week.  These employers are not trying to avoid their obligations and are happy to pay for holidays and sick leave.  They may simply not have guaranteed regular work coming in but need a workforce on hand to deliver when it does The benefits also extend to employees who have the flexibility to take other jobs and to fit work around their other commitments.   In fact, research by the CIPD shows that workers on zero hours contracts are just as happy and engaged at work as any other employee.  And for small businesses, a job that starts with a zero hours contract may develop into a full time role.

So, while these contracts may be abused by some unscrupulous employers, they also provide the flexibility to create new jobs and for small businesses to survive the ups and downs of fluctuating demand.  Just remember, employees are still entitled to the minimum wage, holiday pay and statutory sick pay.

For more information on contracts of employment contact Lynn Bradley at Pennine Business Partners on 01484 841776.