These have become a big issue recently, but it has never been clear exactly why they are so popular. In truth it is far from clear that they provide anything like the protections for employers that are claimed.
Firstly if you regularly provide work for an individual over a period of time, a court may decide that they no longer have a zero hour’s contract.
Secondly, when you calculate holiday entitlement you have to take into account all hours worked (adding at least 12.07% to your wage bill) whereas you don’t include overtime when dong the calculation for a fixed contract.
Thirdly, it is difficult to ensure you workforce is available at all times thus increasing the admin costs of running your business.
I’m not sure where the whole idea of these contracts came from but I suspect it was somebody trying to sell a new idea to capitalise on the success they had with the emperors new clothes. The truth is an employer who wants to exploit their workforce in this particular way will do so, and accept the consequences of that decision whether you ban zero h0urs contracts or not.
The other problem people seem to forget (perhaps deliberately), is that as soon as something is regulated or banned it rarely helps resolve the issue it just makes more opportunities for lawyers and consultants to get involved
If you have any queries about any of the Employment contracts in your business we will do a free health-check for you, just send a copy of one of your contracts to us at email@example.com.