Zero-Hours Contracts Update: Navigating the Changing Landscape of UK Employment Law

Zero-Hours Contracts: An Overview

A zero-hours contract is an agreement where an employer is not obliged to provide any minimum working hours, and the worker is not obliged to accept any work offered. This type of contract offers flexibility for both parties but has been subject to debate due to potential for worker exploitation.

Key Characteristics:

• No guaranteed hours of work.
• Worker can accept or decline offered shifts.
• Often used in sectors like hospitality, retail, and healthcare.

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Recent Updates in UK Employment Law

Recent years have seen significant changes in UK employment law impacting zero-hours contracts. These updates aim to provide better protection and clarity for workers engaged in this type of arrangement.

The Good Work Plan (2018):

Introduced several measures, including:

• Right to a written statement of particulars from day one of employment.
• Increased transparency around rights for variable hours workers.
• Ban on exclusivity clauses preventing workers from seeking employment elsewhere.

The Employment Rights (Miscellaneous Amendments) Regulations 2019:

This legislation brought further changes:

• Right to request a more stable and predictable contract after 26 weeks of service.
• Compensation for workers subject to short-notice cancellation of shifts.

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Legal Implications for Employers and Workers

Employer Responsibilities:

Employers must ensure they are compliant with the latest legislation:

1. Provide clear and transparent contracts outlining the terms of engagement.
2. Refrain from using exclusivity clauses that restrict workers’ options.
3. Respect workers’ rights to request more predictable working arrangements.
4. Comply with minimum wage and working time regulations.

Worker Rights:

Workers on zero-hours contracts have the right to:

• National Minimum Wage: Receive at least the minimum wage for all hours worked.
• Paid Holiday: Accrue paid holiday entitlement based on hours worked.
• Rest Breaks: Take breaks during the working day.
• Protection from Discrimination: Not be discriminated against based on protected characteristics.
• Whistleblowing Rights: Speak out about wrongdoing in the workplace without fear of reprisal.

This video from Valla provides a concise overview of workers’ rights on zero-hours contracts in the UK, highlighting key legal protections and entitlements.

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Navigating the Changing Landscape

Practical Considerations for Employers:

• Review and update contracts to align with current legislation.
• Provide clear communication to workers about their rights and entitlements.
• Offer training to managers on managing zero-hours workers fairly and effectively.
• Consider alternative working arrangements, such as fixed-term contracts, where appropriate.

Practical Considerations for Workers:

• Understand the terms and conditions of the contract before signing it.
• Keep records of hours worked and payments received.
• Seek clarification from the employer on any unclear aspects of the agreement.
• Be aware of the right to request a more stable contract after 26 weeks of service.
• Seek advice from reputable sources, such as Citizens Advice or ACAS, if facing difficulties.

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