Government publishes guidance on zero-hours contracts

In the midst of a continuing debate over zero-hours contracts, the Government has provided a useful note on some of the issues at play.

In the midst of a continuing debate over zero-hours contracts, the Government has provided a useful note on some of the issues at play.

The note covers topics such as whether an individual working under such a contract is classed as an “employee” or a “worker”. This is of course important for employers determining what rights the individual has under the zero-hours agreement. Those with employee status have increased legal protection such as the right not to be unfairly dismissed after 2 years’ continuous service, maternity rights, redundancy rights and rights under TUPE (whereas workers do not).

The guidance note also details the “Zero-Hours Bill”, a private members bill which was presented to Parliament in June and seeks to prohibit the use of zero-hours contracts. Whilst opinion on zero-hours contracts remains mixed, many employers see them as a vital tool for retaining flexibility in an uncertain economy.

The Bill is due to have its second reading in January 2014, which will shed more light on the likelihood of its progression.