Zero-hour contracts are a type of employment contract between an employer and an employee whereby the employer is not obliged to provide any minimum number of working hours to the employee. In this article, we will provide a full guide on what happens when zero-hour contracts become permanent.
Understanding Zero-Hour Contracts
Before we dive into what happens when zero-hour contracts become permanent, it is essential to understand what zero-hour contracts are and how they work. Zero-hour contracts are a type of employment contract where the employer is not obliged to provide any minimum number of working hours to the employee.
The employee may sign an agreement to be available for work as and when required, so that no particular number of hours or times of work are specified.Zero-hour contracts are usually for ‘piece work’ or ‘on call’ work, for example for interpreters. This means that zero-hour workers are on call to work when the employer needs them, but the employer does not have to give them work, and they do not have to do work when asked.
When Zero-Hour Contracts Become Permanent
Zero-hour contracts are not intended to be permanent, and the UK government advises that people should not use zero-hour contracts permanently. If a company can afford a full-time employee, they should hire one. However, in some cases, zero-hour contracts can become permanent.If a person works for a company for at least 20 hours per week for a continuous period of 12 weeks or more, they are entitled to certain employment rights.
These employment rights include:
1. The right to a written statement of employment particulars
2. The right to receive the National Minimum Wage
3. The right to paid annual leave
4. The right to rest breaks
5. Protection against discrimination
If a person works for a company for at least 20 hours per week for a continuous period of 12 weeks or more, they are also entitled to a notice period if their employment is terminated. The notice period varies depending on how long the person has worked for the company.
Pros and Cons of Zero-Hour Contracts Becoming Permanent
While zero-hour contracts becoming permanent can offer benefits for employees, they can also have negative consequences for employers. Zero-hour contracts becoming permanent can result in increased costs for employers, including employee benefits such as sick pay, holiday pay, and pension contributions.
It can also result in a lack of flexibility for employers, as they are now obliged to provide a minimum number of working hours to the employee.On the other hand, zero-hour contracts becoming permanent can offer benefits for employees, including increased job security and employment rights. It can also provide opportunities for career progression and development.
How to Make Zero-Hour Contracts Permanent
If an employer wants to make a zero-hour contract permanent, they should offer the employee a permanent contract with guaranteed hours. The employer should consult with the employee and agree on the number of hours that will be guaranteed each week. The employee should also be provided with a written statement of employment particulars, which outlines their employment rights and responsibilities.
Conclusion
In conclusion, zero-hour contracts are not intended to be permanent, and the UK government advises that people should not use zero-hour contracts permanently. However, in some cases, zero-hour contracts can become permanent. If a person works for a company for at least 20 hours per week for a continuous period of 12 weeks or more, they are entitled to certain employment rights. While zero-hour contracts becoming permanent can offer benefits for employees, they can also have negative consequences for employers. It is important for employers to consider the impact of zero-hour contracts becoming permanent on their business and to ensure that they are used appropriately and ethically.