The BIS has published online guidance providing information on zero-hours contracts and how they should be used. It explains what they are and includes information on employment rights, appropriate use and inappropriate use, alternatives, best practice and exclusivity clauses.

The guidance indicates under ‘appropriate use’, that zero-hours contracts are useful where work demands are irregular or where there is not a constant demand for staff. Zero-hours contracts can also provide a level of flexibility for the individual, which allows them to work around other commitments such as study or childcare. Examples are provided of when a zero hours contract might be appropriate: i.e. new business start-ups, seasonal work, unexpected sickness, special events and testing a new service.

Under ‘inappropriate use’ the guidance states that zero-hours contracts should not be considered as an alternative to proper business planning and should not be used as a permanent arrangement if it is not justifiable. Accordingly, zero- hours contracts might not be appropriate if the job offered will mean the individual will work regular hours over a continuous period of time.

Content Note

The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.