You could start working at 10 am and finish at 2 pm if you feel like it. Or, take a break in the middle of the day and go for a walk or run. And, best of all, no more boss looking over your shoulder and constantly monitoring your every move!

Sounds too good to be true? Well, it’s not! Thanks to zero-hour contracts, this is now a reality for many people. We created this guide to explain what zero-hour contracts are and also the advantages and disadvantages of having one.

Table of Contents

What Does a Zero-Hour Work Contract Mean?

A zero-hour contract is a type of cooperation between an employer and an employee where the employer is not obliged to provide any minimum working hours. In contrast, the employee is not obliged to accept any work offered. Zero-hour contracts are also sometimes referred to as casual contracts or on-call contracts.

The prevalence of zero-hour contracts has increased in recent years, with large companies such as Sports Direct and McDonald’s among those who have used them. In 2022, it is estimated that around 1.03 million people in the UK are employed on zero-hour contracts.

This represents a net increase of 807,000 employees on 0-hour contracts since 2000. Of course, there has been some controversy surrounding the use of zero-hour contracts, with critics arguing that they are unfair to employees and allow companies to exploit workers.

Despite the criticism, zero-hour contracts remain legal in the UK, and there is no limit on the number of hours an employer can ask an employee on such a contract to work. However, employees on zero-hour contracts are entitled to the same basic rights as other workers, including minimum wage rates and paid annual leave.

What’s the Difference between Zero Hour and Casual Workers?

It might be easy to confuse zero-hour contracts with other types of employment contracts, such as casual work. Knowing the differences between these two types of jobs is important, as it can help you to understand your rights as an employee and what you can expect from your employer. Here are some of the most important differences between zero-hour contracts and casual work:

Casual workers are usually hired for only specific periods of time, such as when a company is short-staffed or during busy periods. They do not have a regular or guaranteed number of hours. On the contrary, zero-hour contracts can be used for both temporary and permanent positions. They do not have to be for a specific period of time.
Casual workers are not obliged to accept any work offered to them. They can pick and choose when they work and say no to shifts if they don’t want to work them. On the other hand, employees on zero-hour contracts are expected to be available for work when their employer needs them. They may be required to work on short notice and cannot refuse shifts without a good reason.
Casual workers are not usually entitled to the same employment rights as other workers. For example, they may not be entitled to paid annual leave or sick pay. On the other hand, employees on zero-hour contracts are entitled to the same basic employment rights as other workers. This includes minimum wage rates, paid annual leave, and statutory sick pay.

Advantages of 0-Hour Contracts for Employees

If you are contemplating taking on a zero-hour contract, it is important to be aware of both the advantages and disadvantages of doing so. This way, you can make an informed decision about whether or not a zero-hour contract is the right choice for you. Here are some of the main advantages of zero-hour contracts for employees:

Flexibility: One of the biggest advantages of zero-hour contracts is the flexibility they offer. If you have other commitments, such as childcare or studies, a zero-hour contract can be a good way to fit work around them. You are not obliged to accept any work offered, so you can work only when it suits you.
No commitment: A zero-hour contract can be a good option if you are not looking for a long-term commitment. It can be a way to try out a particular job or company before deciding whether or not you want to commit to it long-term.
Possibility of more hours: Although there is no guarantee of regular work, you may be offered more hours on a zero-hour contract than you would on a casual contract. This can be a good way to earn extra money or get more experience in your chosen field.

Disadvantages of 0-Hour Contracts for Employees

There are also some disadvantages of zero-hour contracts that you should be aware of before deciding whether or not to take one on. These include the following:

Unpredictable income: One of the biggest drawbacks of zero-hour contracts is the fact that your income can be inconsistent. You may not be offered regular work, and the hours you are offered can vary from week to week.
Lack of job security: Another downside of zero-hour contracts is the lack of job security they offer. Because your hours can be cancelled at short notice, you may find yourself out of work for long periods of time. This can be a particular problem if you have financial commitments, such as a mortgage or loans.
Lack of employment rights: As mentioned above, employees on zero-hour contracts are not entitled to the same employment rights as other workers. This includes things like paid annual leave and sick pay. If you are on a zero-hour contract, you may find it difficult to get time off work when you need it.

Despite the disadvantages, zero-hour contracts can be a good option for many people. If you are considering taking on a zero-hour contract, carefully weigh the pros and cons to decide if it is the right choice for you.