What is a Zero Hours Contract?

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What is a Zero Hours Contract?

A zero hours contract is a type of employment contract where a worker has no guaranteed hours and isn’t obliged to accept any work offered. These contracts offer flexibility for both parties, often used in sectors like hospitality, care, delivery services, or seasonal retail, but they’ve also drawn a lot of criticism for creating uncertainty around income and job security.

Under UK law, zero-hour contracts are currently still legal – though they aren’t defined as a separate type of employment contract. Workers on zero-hour contracts can be classed as either employees or workers, depending on their role, and are entitled to core rights like the National Minimum Wage, holiday pay, and protection from discrimination.

Since 2015, exclusivity clauses (which prevent workers from taking on other jobs) have been banned under section 27A of the Employment Rights Act 1996. In 2024, a new Employment Rights Bill was also introduced to parliament. It aims to strengthen protections – proposing guaranteed hours, fair notice for shifts, and compensation for last-minute cancellations - but has not yet been agreed or received Royal Assent. 

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