Zero-Hour Contract
An employment contract in which the employer is not obliged to provide a minimum number of working hours, and the employee is not obliged to accept any hours offered.
A zero-hour contract (sometimes called a casual contract) is an arrangement in which the employer offers work when it is available, with no guaranteed minimum hours. The worker is generally free to accept or decline the hours offered, though in practice there is often an implicit expectation to be available. Zero-hour contracts are common in hospitality, retail, healthcare, and social care.
Zero-hour contracts are controversial. Proponents argue they provide flexibility for both employers and workers — useful for seasonal businesses and for individuals who want to work around other commitments. Critics argue that the power imbalance between employer and worker means that workers feel unable to decline shifts, receive no income security, and are ineligible for many employment rights.
The legal status of zero-hour contracts varies by country. They are widely used in the UK, though workers on zero-hour contracts are entitled to the minimum wage and holiday pay for hours worked. In several European countries, minimum-hour guarantees make true zero-hour arrangements less common. For companies building distributed teams, zero-hour contracts are generally unsuitable for skilled knowledge workers, where predictable output and long-term commitment are the norm.