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

Major milestones reached in build of Pleasure Beach Resort’s new ride Aviktas ride taking shape

Major milestones reached in build of Pleasure Beach Resort’s new ride

28 Nov 2025

2

Airframe Designs to play key role in world water speed record attempt ames Hodgkiss Jerrod Hartley And Chris Fleet Of Airframe Designs In The Longbow Workshop

Airframe Designs to play key role in world water speed record attempt

27 Nov 2025

3

Lancashire businesses react to Autumn Budget announcement Roger Philips

Lancashire businesses react to Autumn Budget announcement

26 Nov 2025

4

Reeves delivers £26bn tax rise Budget UK Parliament Budget photo

Reeves delivers £26bn tax rise Budget

26 Nov 2025

5

Seven Lancashire towns on list of target locations for new M&S Food stores M&S Food Stores

Seven Lancashire towns on list of target locations for new M&S Food stores

26 Nov 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
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

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

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

09:30 - 15:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

Lancashire post Budget analysis finance leaders events
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
27 Nov 2025 - 27 Dec 2025

Lancashire post Budget analysis finance leaders events

Farington Lodge Hotel, Stanifield Lane, Farington, Preston, PR25 4QR

08:00 - 10:00

Navigating making tax digital for Income Tax
mtd event LinkedIn.jpg.jpg
LBV Hub Seminars
03 Dec 2025 - 03 Dec 2025

Navigating making tax digital for Income Tax

Junction 4 Skatepark , Darwen, BB3 0AJ

08:00 - 10:30

Chamber Breakfast Networking – December
Logo.jpg.jpg
LBV Hub Networking
04 Dec 2025 - 04 Dec 2025

Chamber Breakfast Networking – December

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

The Business Network Central & East Lancashire
LBV Header (27).png.png
LBV Hub Networking
04 Dec 2025 - 04 Dec 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:15 - 14:30

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