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

Plans submitted for 15-hectare mixed-use development in Lytham Lytham Illustrative Layout Plan

Plans submitted for 15-hectare mixed-use development in Lytham

27 Jul 2026

2

Your wealth took a lifetime to accumulate. Is it protected? Sarah Griffiths

Your wealth took a lifetime to accumulate. Is it protected?

27 Jul 2026

3

Peter Jackson the Jeweller acquired by WATCHO Peter Jackson

Peter Jackson the Jeweller acquired by WATCHO

24 Jul 2026

4

Blackpool Council chooses supplier for £250m Silicone Sands contract Silicon Sands

Blackpool Council chooses supplier for £250m Silicone Sands contract

24 Jul 2026

5

First finalists of the Lancashire Tourism Awards 2027 announced 1e764bad 6ec4 490f Bbd7 C4cb0910ff92

First finalists of the Lancashire Tourism Awards 2027 announced

24 Jul 2026

Blackburn College (July-Aug 26)
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
LBV130 September/October Magazine Networking Event
Jan/Feb Networking Event - Entrance
Networking
17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2QS

08:30 - 10:30

Built Environment Conference 2026
BEC Listing
Networking
24 Sep 2026

Built Environment Conference 2026

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

08:30 - 13:00

Sub36 Awards 2026
Awards
16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa , Chorley

18:00 - 00:00

LBV131 November/December Magazine Networking Event
Jan/ Feb Networking Event - Talking
Networking
19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Lancashire Business Day 2026
LBD Listing
Networking
27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

The AI Lab: Marketing Multiplier
LBV Hub Roundtables
31 Jul 2026

The AI Lab: Marketing Multiplier

Door4, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:30

Chamber Breakfast Networking – August
Logo.jpg.jpg
LBV Hub Networking
04 Aug 2026

Chamber Breakfast Networking – August

Morecambe Golf Club, Morecambe, LA4 6AJ

08:00 - 10:00

Morecombe Bay Walk
Morecambe-25-web-gallery4.jpg.jpg
LBV Hub Fundraisers
08 Aug 2026

Morecombe Bay Walk

Arnside, Carnforth, LA5 0HD

13:00 - 18:00

The Ultimate Network
Logo.jpg.jpg
LBV Hub Networking
13 Aug 2026

The Ultimate Network

Garner Hotel , Preston, PR5 0UL

16:00 - 18:00

Mind Over Mountain: Brunch at Ivory Tower
mind-over-mountain-complete.jpg.jpg
LBV Hub Fundraisers
11 Sep 2026

Mind Over Mountain: Brunch at Ivory Tower

Ivory Tower, Preston, PR1 2NL

12:30 - 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 LBV124 Online Graphic
Subscribe now

Weekly news bulletin