What You Need to Know About Zero Hour Contracts

We explore how zero-hours contracts provide flexibility in staffing and project management, their implications for recruitment and retention, challenges related to reliability and consistency, and the ongoing debate over their potential regulation or prohibition

CREDIT: This is an edited version of an article that originally appeared on Small Business

Zero hours contracts advantages and disadvantages

For schools, zero-hours contracts offer a flexible solution to address labour shortages in specific business areas such as facilities and building maintenance. However, with over a million UK employees currently on zero-hours contracts, it is crucial to stay informed about the potential benefits and drawbacks of this employment model. Here, we examine the advantages and disadvantages that zero-hours contracts present.

Advantages of zero hours contracts

Flexibility

Employers find zero-hours workers beneficial for managing unexpected staff shortages and peak periods, such as when cover is required during holiday times and during absences. They can also be utilised to cover extended absences like maternity leave. They can also be advantageous when a school is working on a large-scale project, such as launching a refurbishment or relocation where staff may be needed across multiple sites. If you’re looking to expand your team but can’t commit to hiring additional fixed-term staff, zero-hours contracts offer a flexible alternative.

Recruitment and retention

As your team expands, transitioning zero-hours staff to part-time or full-time positions can provide more stable employment and retention, encouraging staff to prioritise shifts with your school over others. This can streamline future recruitment efforts, leveraging a pool of experienced workers familiar with your operations. However, it’s crucial to navigate contract rights carefully, as distinguishing between zero-hours contract workers and employees involves careful consideration.

Disadvantages of zero hours contracts

Competition with others

Ensuring reliability can be challenging, as workers on zero-hours contracts often juggle multiple commitments across different jobs. The flexibility of zero-hours contracts means employees have the freedom to choose their shifts, just as employers have flexibility in scheduling. It’s important to recognise that requesting work does not guarantee acceptance, as workers may prioritise other employers. Schools retain flexibility but may run the risk of being even more short staffed if people choose to work elsewhere.

Could zero hour contracts be banned?

With a new government in place for 2024, there is significant uncertainty regarding potential changes in legislation and their impact on employers. Monitoring any shifts in employment law is crucial, as these changes can occur unexpectedly, not solely during a change in government.