A zero-hours contract commits the employer to no particular quantity of work. The individual is engaged, and hours are offered as demand requires. It is a genuine contractual form in the UK rather than an informal arrangement.
Rights still apply
People on zero-hours contracts are not outside employment protection. They accrue holiday based on hours worked, are entitled to the national minimum wage for hours worked, and depending on the arrangement may qualify as employees rather than merely workers, which brings further rights. The absence of guaranteed hours does not remove the obligations attached to the hours actually worked.
- Exclusivity clauses preventing work for other employers are unenforceable
- Holiday accrues and must be paid, a frequent source of underpayment claims
- Regular, predictable patterns of work over time can change how the relationship is characterised
Why it matters when hiring internationally
Zero-hours contracts attract sustained political attention in the UK and the rules around them have tightened over time, so the position should be checked rather than assumed. They are also a poor fit for the Employer of Record model, which is built around ongoing salaried employment. A company needing genuinely intermittent UK labour is usually better served by a different arrangement, and should be wary of any provider that treats the two as interchangeable.