As a freelance worker or an employer, you might have come across the term “zero hours contract.” A zero hours contract is a flexible working arrangement where an employer does not guarantee a minimum number of working hours for its employees. Instead, they offer work as and when required, often with little notice.
Zero hours contracts can be beneficial to both parties, providing the employer with a flexible workforce while allowing the worker to remain flexible in their employment. However, it is essential to set up a zero hours contract correctly to avoid any potential legal issues. In this article, we will guide you through the steps of setting up a zero hours contract.
1. Determine the worker`s status
Before setting up a zero hours contract, determine if the worker you are hiring will be an employee or a worker. An employee has full employment rights, including holiday pay, sick pay, and the right to request flexible working hours. A worker, on the other hand, is not entitled to these rights and is generally hired on a short-term basis.
2. Set the terms and conditions
The terms and conditions of the zero hours contract should be clear and concise. It should include the following details:
– The minimum and maximum number of hours that the worker can be offered per week or month.
– How the worker will be notified of available work.
– The notice period that the worker needs to give or receive before starting or cancelling a shift.
– The worker`s hourly rate of pay.
– The location of the workplace.
– Any allowances or expenses that the worker may be entitled to.
3. Consider the exclusivity clause
An exclusivity clause is a provision in the zero hours contract that allows the employer to prevent the worker from working for another company. It is important to note that exclusivity clauses are no longer enforceable, and any attempt to enforce them may result in legal action being taken against the employer.
4. Consider the benefits and drawbacks
While zero hours contracts can provide flexibility to both parties, they also have their benefits and drawbacks. Employers can save on costs by not offering guaranteed hours, and workers can fit work around other commitments. However, zero hours contracts can be unpredictable, making it difficult for workers to plan their finances.
In conclusion, zero hours contracts can be useful for flexible working arrangements. However, it is essential to set up a zero hours contract correctly to avoid any legal issues. Ensure that the terms and conditions are clear, and that the worker`s status is determined before signing the contract. Consider the benefits and drawbacks and ensure that both parties are aware of what the contract entails.
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