Zero hours contracts advantages and disadvantages

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

Zero hours contracts (ZHCs) continue to be contentious as employers look for ways to plug the labour shortage in certain sectors.

We take a look at what the advantages of zero hours contracts are for employers.    

Advantages of zero hours contracts

Flexibility

As we’ve seen recently, there can be a real ebb and flow in staff numbers, influenced by factors inside and outside your business. It’s especially true of the hospitality and service sectors.        

Having zero hours workers helps employers to deal with sudden staff shortages and busier periods like the lead-up to Christmas. You could even utilise zero hours workers to cover longer-term absences like extended sick leave or maternity leave.

They can also be helpful for a business that’s starting out that only needs sporadic help to fill in some gaps.

An easier way to grow your business

If you want to grow your business but can’t afford to take on extra fixed-term staff just yet, workers on zero hours contracts could be a suitable alternative.

More affordable

Speaking of affordability, ZHCs are cheaper than paying an agency fee and commission for agency workers. What’s more, you only pay people

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