Analysis of Zero-hour Contracts

Zero hours contracts are both illegal and immoral and UK businesses should not use them
June 15, 2022
Child Interview for Development Evaluation
June 15, 2022

Analysis of Zero-hour Contracts

Introduction

This paper engages in an examination and analysis of zero-hour contracts with particular regard to their legality and morality. Zero-hour contracts have attracted significant media attention in recent times with particular regard to their merits and demerits (Pennycook et al., 2013). Whilst advocates of zero-hour contracts state that they reduce unemployment and provide flexibility to both workers and employers, their critics state that they are open to abuse and their misuse can lead to worker exploitation (Pennycook et al., 2013). This paper first takes up the issue of their legality and thereafter delves into the ethical and moral issues that are associated with their use.

Discussion and Analysis

Legality of Zero-Hour Contracts

A zero-hour contract (a term that is primarily used in the UK) is a form of contract, involving an employer and a worker (Xu, 2018). The employer in such a contract is not obliged to provide any sort of minimum working hours to a worker, whereas a worker is not under any obligation to accept any sort of work that is offered to him (Xu, 2018). The employee, in a zero-hour contract can enter into a agreement with the employer to be available for work when necessary; the agreement in such case does not specify the specific number of hours or time of work (Brinkley, 2013). Research reveals that around 3% of the UK workforce work on zero-hour contracts (Xu, 2018). The Office for National Statistics (2015) stated that an estimated 1.4 million jobs are offered on such terms.

The National Minimum Wage Act 1998 in the UK states that workers employed under zero-hour contracts must be remunerated in accordance with the national minimum wage for hours worked (Collins, 2010). New regulations about zero-hour contract were introduced in 2015 (Xu, 2018). The law stops employers from enforcement of exclusivity clauses in a zero-hours contract and states that it is unlawful for a worker to suffer a detriment because he or she works for another employer (Xu, 2018). Zero-hour workers have the same employment rights as regular workers, even though they may have breaks in their contracts from time to time, which can affect rights that accrue over time (CIPD, 2013). Zero-hour workers are entitled to annual leave, the national minimum wage and national living wage and pay for work related travel just like regular workers (CIPD, 2013).

With regard to legality a..