When the work you have for your workers fluctuates and is not consistent on a weekly or daily basis, you could consider offering them a zero-hours contract. Under this type of contract, you do not have to guarantee regular work. 

What is a zero-hours contract?

One of the first issues to consider is how to define a zero-hours contract. As a form of atypical working, it is important to clarify the exact employment status for the worker you are looking to recruit on a zero-hours contract. This involves stating their rights and conditions in the contract itself. To establish a zero-hours contract that complies with UK employment law, you may wish to seek legal advice.

If you want to find out about UK legislation surrounding zero-hours contracts, the UK Government has guidance for employers on its website.

According to UK law, zero-hours contract workers are entitled to some of the same benefits and rights as other workers and employees. This means that they are entitled to statutory annual leave, and like regular workers, they must receive at least the National Minimum Wage. A zero-hours contract worker is also entitled to search for work elsewhere while working for you, and can take on work from another employer. 

Employment status

A zero-hours contract also usually states whether the person hired is an employee, self-employed or a worker. If there is no mutual obligation between you and your new recruit, they are most likely considered a worker. This is a particularly common form of zero-hours contract. 

The zero-hours contract is an agreement between you and the candidate you choose to recruit. It shows that both of you have agreed on the amount of pay that the worker will receive when they work for you. It also states what will happen if they refuse the work that you offer them.

If you ever need to cancel any work that you have already arranged with a zero-hours contract worker, you may decide to offer them some compensation for the lost work, in which case you can include this in the terms and conditions of the contract.

Alternatives to a zero-hours contract

A zero-hours contract may be the most appropriate option to cover your business needs if the workload will fluctuate over time. For example, if you are looking for seasonal staff to cover a busy holiday period, you may deem it necessary to take on extra staff on zero-hours contracts to help your pre-existing team with any shifts they can’t cover. You could also recruit someone on a zero-hours contract to test out a new business service.

One issue for employers, however, is that some workers may not consider a zero-hours contract to be secure enough. The work that they receive might be unpredictable, making it more difficult for them to budget, pay monthly bills or plan for the future. 

Therefore, you may wish to consider whether there is enough regular work to warrant recruiting that employee under a different arrangement. If you are expecting to be able to give an employee regular hours on a continuous basis, a zero-hours contract might not be the best option. In a nutshell, you might look to hire a worker on a zero-hours contract if the flexible nature of the contract is of benefit to both the employer and employee.

There are various options available for you to consider if you feel that a zero-hours contract is not necessary to provide the flexibility you require. You could think about another flexible working model, such as annualised hours. Or you could look at options such as:

These options may provide your workers with more job security during the time for which you hire them, compared to zero-hours contracts. As such, they may be more attractive to potential candidates who value elements of both flexibility and regularity in their workload. 

How to employ someone on a zero-hours contract

Once you have decided on the terms and conditions of your zero-hours contract, you can look at sourcing candidates. When advertising the role, it is a good idea to state clearly that it is a zero-hours contract, so that you can find candidates who are right for the role. You might also want to look at the zero-hours contract rates that other businesses currently offer, so that you can provide a competitive rate to potential recruits.

Like your employees on other types of contract, zero-hours contract workers may still need a thorough induction process and an introduction to your permanent staff. Some of the staff you recruit will be able to take on the role immediately without any prior training, but introducing them to your business processes will help ensure that the work they carry out fulfils your expectations. 

While they are on a contract with you, it is advisable to keep an open line of communication with your zero-hours contract workers. Consider providing them with work availability updates via text or email. You may also wish to advertise permanent roles to them, so that they can apply for a permanent position if suitable work becomes available. 

Establishing a working pattern for your zero-hours contract or temporary workers is more likely to result in a higher level of productivity. You can also create a talent pool, where you hire several workers on zero-hours contracts, which means that if a worker is unable to work for you on a particular shift, you have other workers who may be potentially available to cover that time.

Recruiting a worker on a zero-hours contract can be useful if you do not have a consistent workload available. This might be the case if you need seasonal staff or are looking to cover occasional busy shifts. However, it is important to familiarise yourself with UK legislation on zero-hours contracts.

It might not always be appropriate to hire someone on a zero-hours contract if there is regular work available. If this is the case, it may be more suitable to employ them on a fixed-term or temporary contract.