HR Glossary
Zero-hour contract

Zero-hour contract

Updated on:
August 22, 2022


Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

green check mark symbol
Fact Checked

Content is reviewed to provide accurate, clear, and reliable information. Learn about our editorial process

Table of Content

What is the Zero-hour contract? 

zero-hour contracts are contracts where employees are not required to have set hours or days. Employees work on an as-needed basis, ranging from 10 to 40 hours, depending on the job.

There is no guarantee that employers will have work available for employees, and employees are not required to accept work if it is offered.

What is the zero-hour contract advantages and disadvantages? 

The advantages of zero-hour contract are: 

  1. Flexibility to work 
  2. Fast and easy way to grow your business 
  3. Can lead you to full-time job 
  4. they can help to keep labor costs down by avoiding the need to offer guaranteed hours of work.
  5. they can provide employers with a way to meet sudden or unexpected increases in demand for their products or services. 

The disadvantages of zero-hour contract: 

  1. Stabilization company culture and vision 
  2. It is hard to get staff especially in short period 
  3. Higher turnover 
  4. No fixed income 

The zero-hour contract, or “on-demand” contract, is a new contract type that allows an employer to hire and fire employees at the drop of a hat. This contract type has gained popularity with employers in industries such as retail and fast food because they do not have to worry about fees and the costs associated with hiring and firing employees.