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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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Zero-hour contract

What is a Zero-Hour Contract?

A zero-hour contract is an employment agreement where the employer does not guarantee the employee any set number of hours per week. Instead, employees work only when needed and are paid only for the hours worked. This type of contract offers flexibility for both employers and employees but also introduces a degree of uncertainty regarding income stability.

Flexibility and Employment Dynamics

The primary advantage of zero-hour contracts is the flexibility they offer. Employers can manage staffing levels more efficiently, responding to changes in demand without the overhead of fixed salary costs. Employees benefit from the ability to accept work according to their schedules and commitments, which is ideal for students, caregivers, or those seeking part-time engagements to balance with other life activities.

Income Variability and Job Security

The major drawback of zero-hour contracts is the unpredictability of work and income. Employees may find it challenging to manage their finances due to the fluctuating hours and lack of guaranteed income. This uncertainty can also affect job security, making it difficult for some to maintain long-term financial and career plans.

Considerations for Employers and Employees

Employers using zero-hour contracts should strive to maintain fair labor practices, ensuring that employees are not exploited due to the inherent flexibility of these contracts. It is important for potential employees to understand their rights and the terms of their employment agreement fully. Employers and employees alike should communicate openly about expectations and work availability to foster a transparent and respectful working relationship.

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