Zero Hours Contract Guidance Published

The Department of Business Innovation & Skills has published a guide which outlines how employers in the UK should be using zero hours contracts.

The 1,400 word report includes details of appropriate use, and sets our alternative payment structures for employers to consider.

It explains when this type of contract is inappropriate, and gives examples that employers and employees can examine.

When are they appropriate?

The document gives five examples of when zero hours contracts might be appropriate for a business:

  • New businesses with unpredictable or fluctuating demand
  • Businesses with seasonal demand
  • Employers that need to cover unexpected sickness
  • Catering companies who need more experienced staff
  • A company who is trying a new service out and that is thinking about providing staff on an ad hoc basis

Situations are also outlined where a zero hours contract is not appropriate, such as an individual being asked to work between 9am and 1pm, Monday to Wednesday over a 12-month period. In this situation it is suggested that the employer should offer a permanent part-time contract or a fixed term contract.

Zero hours contracts jump by one-fifth

There were 744,000 people on zero hours contracts between April and June 2015, which accounted for 2.4% of all those employment, or one in 40. That’s a growth of one-fifth, from the 624,000 people who were on zero hours contracts during the same period in 2014.

Employ people that know about zero hours contracts

Companies should always strive to ensure their payroll departments are full of skilled professionals who know the payroll industry and all associated zero hours contract legislation inside-out.

That’s where Portfolio come in handy – we are specialist payroll recruiters who find the right people to fill payroll jobs in companies of all sizes in a plethora of different industries.

Get in contact on 020 7247 9455 or email to find out more.

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