What employers need to do to manage zero-hours contracts within the law
‘Zero-hours contract’ is not a legal term, and CIPD research has highlighted that a wide range of atypical working arrangements can fall under this umbrella, such as short-hours, shift work or annualised hours contracts. The definitions of ‘typical working relationships’ are provided on the employment status law page.
Zero-hours contracts allow a business to flex its resource on short notice according to customer demand. However, they have come under criticism for the lack of security they provide, which some argue is detrimental to workers or employees working under them. Organisations considering using zero-hours contracts should think about the business rationale, including whether there are other types of flexible working or employment practices that would deliver the same benefits.
All employers should note that the government are proposing changes to zero-hours contracts under the Employment Rights Bill. CIPD members can monitor the progress of these changes on the Employment Rights Bill tracker.
The guide below outlines the current legislation on zero-hours contracts. The guide aims to help employers ensure that they are using zero-hours contracts responsibly, as well as making clear the legal implications of using these contracts.
For convenience, this guidance uses the term ‘employer’ to mean the hiring party in a contract for work, whether the individual being hired is an employee, a worker or a self-employed person.
Affiliate membership offers instant access to CIPD resources without the need for assessments or study, or explore your options to become a professional member of the CIPD to demonstrate your commitment to the world of work.
Already a member? Login here.
CIPD’s Senior Performance and Reward Advisor, Charles Cotton, explores some of the more common misconceptions around reporting gender bonus gaps, and what employers need to do to comply with requirements.
Read the article
Major UK business groups urge deeper government engagement to ensure Employment Rights Act remains practical and balanced
In Great Britain, the Equality Act 2010 creates a legal obligation on employers to ensure equal pay. Explore this legal requirement, and case law in this area
Find links to useful information for people professionals, plus supporting resources for CIPD members
Advice for HR practitioners on how to support young non-graduates to perform at their best and achieve business benefits
Guidance on how to manage the impact AI-driven change is having on human skills; the key concepts and challenges, and a structure for responding to the profound impact of AI on human skills
Advice for people professionals on the fair management of annual leave
