Recently in the media there has been a great deal of coverage about the use of what has become known as zero-hours contracts. It should be stressed that there is no accepted legal definition of what a zero-hours contract is and the key issue will be the individual facts of each case.
Generally speaking in employment law there are 3 main categories of staff in a workplace – employees, workers and independent contractors. When someone is classified as being zero-hours it should not be automatically assumed that they are an employee with all the employment protection rights that go along with being an employee.
In many cases a zero-hours contract staff member will be legally classified as a worker and thus will have some, but not all, of the rights that an employee has such as – statutory holiday entitlement and National Minimum Wage.
There is often confusion about zero-hours contracts as they can appear from one perspective to be somehow exploitative but from another perspective be simply a flexible form of working.
This can be a complicated area of employment law and it is only by asking key questions, such as those listed below, that the picture becomes clearer. As a first step in determining the staff status of a zero-hours contract person the following questions could be asked:
When the answers to questions such as those above become clear it will give a clearer indication of what the status of the zero-hours contract staff member is (e.g.) an employee, a worker, a genuinely self employed independent contractor.
From here it will be easier to determine what the rights and responsibilities are for both parties to the contract.
If you are an employer or a zero-hours contract staff member and you have a query regarding these types of working arrangements please do not hesitate to contact the Labour Relations Agency’s Helpline on 028 9032 1442
The Agency’s Enquiry Point is available to employers, employees, trade unions and others. Enquiry Point advisors provide information and advice on a wide range of employment matters. The Enquiry Point is also an important contact point for identifying circumstances, or clients, who would benefit from being referred to other Agency services.
The Enquiry Point provides clear, confidential, independent and impartial advice to assist the caller in resolving issues in the workplace.
While the advisors cannot provide a legal opinion they can help callers gain a better understanding of their rights and responsibilities as well as identifying possible options to help resolve their issues.