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

EV charging platform TOGL launched L Will Maden Founder Of Togl R Rory Southworth Head Of Fhunded

EV charging platform TOGL launched

22 Sep 2026

2

The Lancashire Business View - Issue 130 September/October 2026 Image: Mark D Bailey / Shutterstock.com

The Lancashire Business View - Issue 130 September/October 2026

21 Sep 2026

3

CMAC completes full acquisition of Coach Hire Comparison Cmac

CMAC completes full acquisition of Coach Hire Comparison

18 Sep 2026

4

'Mayoral devolution is an opportunity not to be missed' BwDBC Phil Riley

'Mayoral devolution is an opportunity not to be missed'

18 Sep 2026

5

Jobs axe falls as chemical plant closure confirmed AGC Logo

Jobs axe falls as chemical plant closure confirmed

18 Sep 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
Built Environment Conference 2026
BEC26 WW Logo720 24 Sep 2026

Built Environment Conference 2026

EG On The Move, Waterside Head Office, Blackburn, BB1 2FA

08:30 - 13:00

All In One Network
LBV Website Events GraphicAll In One Network 15 Oct 2026

All In One Network

The Leisure Box, Northlight, Glen Way, Brierfield , BB9 5NH

14:00 - 16:00

Sub36 Awards 2026
Sub36 WW Logo720 16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa, Chorley, PR7 5LP

19:00 - 00:30

LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

The Marketing Meetup : Lancashire
Sept_TMM_Lancashire.png.png 22 Sep 2026 - 22 Sep 2026

The Marketing Meetup : Lancashire

Six Connections, One Slater Terrace, Burnley, BB11 1BU

18:00 - 20:00

Unfair Dismissal Reforms Under the Employment Rights Act: What Employers Need to Know
Brabners logp .png.png 23 Sep 2026

Unfair Dismissal Reforms Under the Employment Rights Act: What Employers Need to Know

Webinar , Remote , Remote

10:00 - 11:00

Launch Event - Business Support and Grant Programmes
Choose Chorley 23 Sep 2026

Launch Event - Business Support and Grant Programmes

Strawberry Fields Digital Hub, Chorley, PR7 1PS

08:45 - 11:00

Employment Law Update Lancashire
LBV Website Events GraphicEmployment Law 1 24 Sep 2026

Employment Law Update Lancashire

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

09:00 - 12:00

September Freelancer Meet-Up
 Freelancer Meet-Up Square September .png.png 24 Sep 2026 - 24 Sep 2026

September Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

The Business Network Central and East Lancashire
LBV Website Events GraphicBusiness Network 2 24 Sep 2026

The Business Network Central and East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

90 Day Business Planning Workshop
90 Day Business Planning Workshop 25 Sep 2026

90 Day Business Planning Workshop

The Holiday Inn, Bolton, BL1 2EW

09:00 - 16:30

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 LBV129 Online Graphic
Subscribe now

Weekly news bulletin