You’ve probably heard about zero hours contracts, but the details might not have sunk in. It’s all pretty vague, uninteresting and unclear to many people. In fact, that lack of transparency is at the heart of the issue.But it helps anyone in their employment freedom and rights as a worker in the UK to know the facts as they stand.A new report from the Office for National Statistics (ONS) in Newport claims that a total 40,000 people in Wales are on zero hours contracts. Over the period from April to June, these 40,000 people represented 2.8 per cent of the Welsh workforce, while the entire UK was said to have 744,000 working on zero hours contracts.

So what are zero hours contracts?

The single agreed area concerning zero hours contracts is that there is no guaranteed minimum number of hours. They are usually applied to those working on a ‘casual contract or a non-standard/flexible basis’ according to REC. Aside from that, general uncertainty and ambiguity rules.A number of contracts are explicitly called zero-hours contracts, whereby parties have agreed the employer has no obligation to provide work and a worker has no obligation to accept work. Google it and you’ll find multiple definitions exist and are applied alongside formal statistics. Consistency is lacking.TUC research has shown average weekly earnings for zero-hours workers (ZHWs) are £188, compared to £479 for permanent workers. This itself suggests a direct opposition between permanent workers and ZHWs, or temps? Added to this is another fraction of the UK’s workforce who are underemployed, which the TUC puts at 820,000.It’s said by the ONS that ZHWs usually work 25 hours per week, but 40 per cent of them want more hours, usually in their existing role. These people are most likely to be under 25 or over 65, female, and in full-time education.In January 2015, some use of zero hours contracts, or no guaranteed hours, was made by businesses in accommodation and food services, and a quarter of businesses in education.Labour leadership favourite Jeremy Corbyn has commented on the subject.“The figures show an increasing trend of work becoming more insecure, low paid and exploitative. But this is only the tip of the iceberg with growing numbers underemployed or forced into unpaid workfare schemes, internships, and low quality apprenticeships.”

Your rights as a zero hours worker

According to the REC, people working on such a flexible basis will have a number of legal entitlements.

  • National Minimum Wage
  • Statutory holiday pay
  • Working time rights
  • Automatic enrolment for pensions
  • Protection from unlawful discrimination
  • Protection from unlawful deductions from wages

Also, ZHWs who are also employees have full employment rights including:

  • Statutory sick/maternity/paternity/adoption pay
  • Protection from unfair dismissal
  • Entitlement to statutory redundancy pay
  • Entitlement to maternity/paternity pay

For more information on your rights as a worker, visit the REC website and view its extensive material on the subject.As difficult and unclear as they can be, Zero Hours Contracts do serve an important purpose. They enable businesses to rapidly react to surges in demand, particularly in sectors like catering, construction and care work – all areas Atlantic Resource specialises in.If you’d like to chat through your current work options with us, please get in touch.