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Global Work Glossary

Lost in a maze of global employment jargon? Find your way out with our handy collection of work and HR terminology

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# A B C D E F G H I J L M N O P R S T U V W X Y Z

Zero-hour contract

What is zero-hour contract?

A zero-hour contract is an employment agreement in which people are not guaranteed a fixed number of working hours. Instead, work is offered as and when it is needed by the employer and workers are not obligated to accept every shift.

Because of this flexibility, zero-hour contracts are most commonly used in industries such as hospitality and retail where the demand for staff changes seasonally. Employers can manage staffing more easily by only hiring workers when they need them while employees can balance their shifts around their personal commitments.

The terms of a zero-hour contract are not set and so the scope of work can vary hugely. Some zero-hour contract workers can even work full-time hours, but because they are not employees they will not receive benefits such as retirement packages and paid time off.

Different countries place different regulations on zero-hour contracts. For example, in the UK, workers on zero-hour contracts are entitled to statutory annual leave.

For this reason, and to streamline employee experience, it’s best to manage zero-hour contracts through HR software such as Multiplier. Our platform ensures compliance across the globe.

Ready to take the leap? Choose Multiplier as your EOR partner

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