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

College restaurant honoured with top culinary award from prestigious chefs’ guild Karen Lilley Front Of House Lecturer David McKown David Lyon Scholars Manager And Blackburn College Principal Dr Fazal Dad

College restaurant honoured with top culinary award from prestigious chefs’ guild

10 Jun 2025

2

Cosmetic manufacturer lets new unit on Frontier Park, Burnley Badgequo have agreed to let the site on Frontier Park

Cosmetic manufacturer lets new unit on Frontier Park, Burnley

10 Jun 2025

3

SQ Digital celebrates 25 years and enters new era with CEO appointment Kamal Essa

SQ Digital celebrates 25 years and enters new era with CEO appointment

09 Jun 2025

4

New chair appointed to Atlas BFW Management Graham Cowley

New chair appointed to Atlas BFW Management

09 Jun 2025

5

Napthens makes key appointments to further growth strategy of newly appointed managing director Napthens appointments Jayna Mistry, Onyeka-Obedi and Rebecca Rhodes

Napthens makes key appointments to further growth strategy of newly appointed managing director

09 Jun 2025

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
Sub36 Networking
Sub36 Social1200pxandi Lewis
Networking
11 Jun 2025

Sub36 Networking

Mytton Fold Hotel , Blackburn , BB6 8AB

09:30 - 11:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

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

08:30 - 13:00

LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College Industry Hub, Burnley, BB120AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

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

09:00 - 15:30

Preston Freelancer Meet-Up
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

Preston Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

The Business Network Central & East Lancashire
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron
BU-June-Event-BRAD-1.jpg.jpg
LBV Hub Networking
18 Jun 2025 - 18 Jun 2025

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron

Blackpool Football Club, Bloomfield Rd, Seasiders Way, Blackpool, FY1 6JJ

08:30 - 11:30

Chamber Business Lunch – June
Chamber Logo1.png.png
LBV Hub Networking
20 Jun 2025 - 20 Jun 2025

Chamber Business Lunch – June

Lancaster House Hotel, Bailrigg, Lancaster, LA1 4GL

11:00 - 13:30

90 day Business Planning Workshop
LBV Event Header.png.png
LBV Hub Seminars
20 Jun 2025 - 20 Jun 2025

90 day Business Planning Workshop

Bolton Arena, Arena Approach, Horwich, BL6 6LB

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 LBV122 Online Graphic
Subscribe now

Weekly news bulletin