Should My Small Business Use A Casual/Zero-Hours Contract? (UK)

By law, all workers are entitled to a written statement of the terms of their engagement within 2 months of starting. The question is what kind of contract should be used. I think that in the case of small businesses, (such as cafes, restaurants, pubs, builders etc.) whose volume of work is driven by seasons, events or times of year, then casual/zero hour contracts are probably ideal for your business.

Controversy around zero hours contracts.

Of course, there has been a lot of controversy and a lot of coverage in the news about casual workers and in particular the increasing use of zero-hours contracts, where employees or workers are not guaranteed a fixed amount of hours a week. The weekly working hours vary from 0 to 48 hours, depending on the volume of work that the employer has available.

The controversy surrounds the fact that since employers are not committing to a fixed amount of working hours a week — like in a part-time or full-time contract — which means that the casual worker has low levels of job and financial security as they simply don’t know how much work will be offered from one week to the next.

Students find zero hours/casual contract beneficial

On the other hand, certain sections of society, especially students who crave flexible work have been shown to have more positive attitudes to zero hours contracts and they find it beneficial, and so it’s not all bad.

Zero-hours and casual contracts are great for seasonal businesses

There are pros and cons for employees when using zero-hours contracts, but generally they are a good thing for employers if used wisely. That is, they are generally not suited to the wider industry as part-time and permanent contracts are more appropriate and using zero-contracts in areas where work is more predictable can be viewed as exploitative.

Casual/zero-hours contracts are very useful for employers whose volume of work is driven by seasons, events or times of year, as it enables employers to contract and expand their workforce to meet the needs of the business.

Types of business that should use a zero-hours or casual contracts are