A Zero-Hour Employment Contract is a type of agreement that allows employers to hire employees without guaranteeing any specific working hours. Instead, the employee works on an as-needed, as-available basis.
This can be useful for employers who need a flexible workforce and employees looking for a more flexible work schedule. However, it is essential to ensure that the terms of the agreement are fair and that both parties are clear on their responsibilities and expectations.
Use our free zero-hour contract template in PDF or Word format to streamline your employment process.
Employers with varying staffing needs may benefit from hiring workers on a zero-hour contract. With a zero-hour contract, you can hire an employee to work temporarily or on-call without committing to future hours when you may not need the help.
A zero-hour employee can help you cover shifts during emergencies or unexpectedly busy times. At the same time, zero-hour employees have the flexibility to meet their obligations by working only when available.
As an employer, there are both advantages and disadvantages to using a zero-hour contract:
Advantages:
Disadvantages:
A zero-hour contract is a legally binding document, so it should outline all the details of the work agreement, including:
A zero-hour contract defines expectations for the worker and employer. To ensure that all aspects of the agreement are covered, follow these steps:
Include the full name of the worker, as well as their address and contact information. Also include the business’s name, business address, and phone number.
Although the worker will only work as needed, provide a specific job title or description. The agreement should outline the duties and expectations the worker must meet while working.
If your zero-hour contract is for a specific time, clearly indicate the start and end date in the agreement. If the contract is indefinite, you should enter the start date and note the terms for contract termination.
Even without an end date, your zero-hour employee contract should include terms under which either party may terminate the contract. For example, the business can terminate the contract if the worker fails to meet the expectations outlined in the agreement.
Enter the agreed compensation amount. It is typically the hourly rate you will pay to the worker for their services. Your contract should also outline policies for overtime, shift work, benefits, paid time off, and holidays.
Include a clause that outlines the payment terms, whether on a daily, weekly, bi-weekly, or other basis. You should also advise how you will pay your zero-contract employees and how you expect them to record hours worked.
If you have any specific policies for missed work, emergencies, sick days, or holidays, include that information in your zero-hour agreement.
To ensure the agreement is legally binding, the employer and worker should sign and date it.
Zero-hour contracts can be a helpful tool, but you should consider the following before hiring workers on a zero-hour basis.
The Fair Labor Standards Act (FLSA) and other federal, state, and local laws establish standards for wages, hours, overtime, and other workplace considerations. Before you use a zero-hour contract, be aware of the laws and regulations that apply to your business. If not, you could fall afoul of federal and state labor laws.
Your company may have established policies for employees and workers. Human resources (HR) departments often create specific employment contracts and policies to ensure your company meets regulatory requirements. Before entering a zero-hour contract, be sure it does not violate your company policies.
From an employer’s perspective, a zero-hour contract may seem ideal. However, a zero-hour contract is not always appropriate, and misuse of such agreements could violate labor laws.
For example, an employee who works full-time with no end date may be better suited to a permanent employment contract. Similarly, a temporary employment contract may be appropriate if you plan to have your employee work full-time but only for a specific period.
Most zero-hour workers work on a contract basis, which makes them ineligible for benefits such as sick pay and paid holidays.
As a zero-hour contract worker, you have a right to a minimum hourly wage, choose which work you accept, and terminate your contract at any time. You can also work for multiple companies rather than being tied to one employer full-time.
Whether you can dismiss someone on a zero-hour contract depends on the terms of the contract. Some require grounds for termination, while others allow for termination at any time.
Create your Zero-Hour Employment Contract here!
