Expert view: Zero hours contracts - what's all the fuss about?

By Farleys Solicitors LLP

22 Aug 2013

Victoria Mitchell of Farleys looks behind the headlines generated by zero hours contracts.

There has been a great deal of negative press about zero hours contracts in the media in the past few weeks.

It is now thought that in excess of one million UK workers are employed under such contracts, with companies including McDonald’s, Wetherspoons and even Buckingham Palace being found to employ workers under such terms.

But what are zero hours contracts in terms of employment law and what is all the fuss about?

Zero hours contracts are not actually defined in law. In practical terms, however, they are a type of casual employment agreement in which the employer does not guarantee any set or minimum hours; paying the worker only for the hours they work.

Part of the reason for the recent controversy surrounding zero hours contracts is that under such an employment agreement, employees are not afforded many of the rights that employees would normally receive. These include fairly basic things such as paid holiday entitlement and sick leave.

Traditionally popular in leisure businesses, where demand for staff can fluctuate depending on factors such as the weather and therefore allowing employers flexibility and reduced risk of overstaffing, several other types organisations have recently been seen to increase their use of zero hours contracts.

These include retails businesses, charities and even local councils. It is their use in these environments that has caused the furore, with critics suggesting that organisations are simply using this type of arrangement to flout their employment law duties.

Another criticism is that zero hours contracts offer no guaranteed weekly or monthly income for the staff employed on them, making it difficult to plan and budget. Certainly, there is particular concern whereby the employers include ‘exclusive’ conditions in their contracts, meaning that employees are not allowed to work elsewhere if they needed to supplement their income at any point. Arranging childcare and calculating income to claim benefits or tax credits are also problems associated with flexible working hours.

There are of course benefits – both for employers as well as employees – of using zero hours contracts. Namely, these surround flexibility – allowing businesses to avoid situations where they are overstaffed during unexpected quiet days or spells. It should be noted that the employees have the right to decline work they are offered - allowing them to be flexible and balance their work and personal lives.

Employers need to be aware that there is mounting pressure for a change in the law relating to zero hours contract and if they are currently employing staff under these terms, should perhaps start to consider how they would adapt if such a law does come into force. It may be that employees could be transferred onto fixed hours contracts instead – a move which some of the businesses criticised in the press in the past few weeks have already started to make.

Employers should also be aware that if they originally employed staff under zero hours contracts but the hours that those employees work have become fixed and regular, contractual hours could become an implied term. As such, an employee could by virtue become entitled to ‘normal’ working rights and could bring a claim against an employer who refuses to afford these to them.Victoria MitchellFarleys

Latest news

1

Royal Navy launches Level 5 healthcare apprenticeship with University of Lancashire Royal Navy visit the theatre

Royal Navy launches Level 5 healthcare apprenticeship with University of Lancashire

02 Apr 2026

2

More acquisitions in the pipeline for Chesnara Steve Murray - Chesnara

More acquisitions in the pipeline for Chesnara

01 Apr 2026

3

East Lancashire Learning Group tops national achievement rate tables Lisa O'Loughlin

East Lancashire Learning Group tops national achievement rate tables

31 Mar 2026

4

The grate comeback of Butlers Gill and Matthew Hall

The grate comeback of Butlers

31 Mar 2026

5

Retrofit contractor appoints new social value manager Angela Jones Social Value Manager

Retrofit contractor appoints new social value manager

31 Mar 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
AI & Cybersecurity Summit
AI and Cybersecurity Logo
Summit
28 Apr 2026

AI & Cybersecurity Summit

Dunkenhalgh House , Blackburn Road, Clayton Le Moors, BB5 5JP

08:30 - 11:00

Sub36 Networking - Outdoor Elements
Sub36 Outdoor Elements Logo1920x1008
Networking
29 Apr 2026

Sub36 Networking - Outdoor Elements

Outdoor Elements, Pump House Dean Wood, Trapp Lane, Burnley, BB12 7JD

09:00 - 11:00

LBV Magazine Networking Events - SAVE THE DATES
Jan/ Feb Networking Event - Talking
Networking
14 May 2026

LBV Magazine Networking Events - SAVE THE DATES

Lancashire

08:30 - 10:30

Funding Summit
Funding Logo Canva Mid
Summit
17 Jun 2026 - 17 Jun 2026

Funding Summit

Village Hotel Blackpool

08:30 - 11:00

RISE - a tailored 6 month leadership programme for women across the North West
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
15 Apr 2026 - 15 Apr 2026

RISE - a tailored 6 month leadership programme for women across the North West

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central and East Lancashire
LBV Header (31).png.png
LBV Hub Networking
16 Apr 2026 - 16 Apr 2026

The Business Network Central and East Lancashire

Mytton Fold, Blackburn, BB6 8AB

11:30 - 14:15

Sickness Absence: key actions for your business
Logo.jpg.jpg
LBV Hub Seminars
22 Apr 2026 - 22 Feb 2026

Sickness Absence: key actions for your business

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

Freelancer Meet-Up April
April Freelancer Instagram size.png.png
LBV Hub Networking
23 Apr 2026 - 23 Apr 2026

Freelancer Meet-Up April

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 00:00

Vibe Coding: "Who owns what when no one wrote the code?"
April PTC Banner.png.png
LBV Hub Networking
28 Apr 2026 - 28 Apr 2026

Vibe Coding: "Who owns what when no one wrote the code?"

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Manufacturing for Tomorrow Club
Example.png.png
LBV Hub Seminars
30 Apr 2026 - 30 Apr 2026

Manufacturing for Tomorrow Club

University of Lancashire, Preston, PR1 2HE

09:00 - 11:30

Dazzle & Decadence
Dazzle & Decadence TryBooking Header.png.png
LBV Hub Fundraisers
30 Apr 2026

Dazzle & Decadence

Ainsworth Jewellers, 57-59 Darwen St, Blackburn, BB2 2BW

18:00 - 20:00

Blackburn Beer and Gin Festival 2026
Blackburn Beer and Gin Festival 2026
LBV Hub Social
01 May 2026

Blackburn Beer and Gin Festival 2026

BB1 8NB

17:00 - 23:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin