The ever-evolving landscape of work demands adaptable solutions. Zero-hour contracts, offering flexibility for both employers and workers, continue to be a prominent feature due to the UK being a gig economy. But what about notice periods in these arrangements? In this 2024 update for HR professionals, we’ll delve into the legalities, answer common questions, and explore trends to watch and highlight any risks your business should know with regards to zero-hour contracts.
Understanding Notice Periods in Zero-Hour Contracts
Unlike traditional employment contracts, zero-hour contracts (often used in hospitality, retail, and care sectors) typically do not guarantee a minimum number of working hours. This extends to notice periods for termination. There is no statutory requirement for either party to provide notice [acas.org.uk].
However, a key point to remember is employment status. Workers on zero-hour contracts are generally classified as “workers” (not “employees”) and don’t have the same rights as employees regarding notice periods. However, there are others factors employers should consider, such as duration and frequency of these zero hour contracts which may provide the worker increased statutory rights and an employee work status. This means as an employer, you will need to meet the minimum obligations such as statutory payments.
Common Questions Answered
- Can a zero-hour contract have a notice period?
Typically, there is no obligation on the employer or employee to apply a notice period on a genuine zero-hour contract. This means, if the employee wants to leave the role, they are under no requirement to provide notice. This set up clearly works for temporary and fast paced industries which has an accepted high staff turnover rate. This also means that the employer is able to dismiss employees without any warning.
- What are the benefits of including a notice period?
While not mandatory in zero-hour contracts, a reasonable notice period can foster a more professional and respectful working relationship – this has to be agreed by both parties. A notice period allows for smoother transitions and movement of staff and helps with planning for both the employer and worker. It also protects the employer from experiencing gaps in staffing cover providing time to organise replacements.
- What are the downsides of including a notice period?
It reduces flexibility for both parties, especially for the employer who may need to fill a sudden vacancy.
A notice period ties both parties into an extension of the employment relationship which may be terminated through voluntary or involuntary dismissal/termination of contract. This can have a negative impact on the relationship, although employment terms can specify if the worker is required to work during this period. Always seek professional HR advice.
2024 Trends to Watch
- Increased Scrutiny: With growing awareness of worker rights, there is expected to be a rise in legal challenges around unfair treatment in zero-hour contracts. There are currently debates in parliament on abolishing zero-hour contracts altogether as a mean of protecting workers from ‘unfair’ dismissal
- Focus on Fairness: Businesses are likely to prioritise fair treatment and reasonable notice periods, even if not legally required, to attract and retain talent in a competitive market.
- Transparency is Key: Clear communication regarding notice periods and expectations will be crucial for maintaining a positive working environment. Terms and condition of employment should be transparent and agreed by both parties
Zero-Hour Contracts: Common Job Types
Here are some examples of roles where you might encounter zero-hour contracts:
- Retail Sales Assistants
- Warehouse Staff
- Hospitality Staff (Waiters, Bartenders)
- Care Workers
- Event Staff
Conclusion
Zero-hour contracts offer flexibility, however, navigating notice periods requires a nuanced understanding. By staying informed about legalities and trends, HR professionals can ensure fair and efficient practices for both employers and workers in this evolving landscape.
