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

Some people question what redundancy looks like for people on zero hours contract.

Whether or not they get redundancy depends on their employment status. Redundancy pay only applies to zero hour employees. Remember that zero hours employment includes the right not to be unfairly dismissed by way of redundancy as well as redundancy pay. They also have a right to a notice period.

You should give all staff statutory notice of:

One week if you’ve employed them for one month or over, but for less than two yearsTwo weeks if you’ve employed them for two years. For every year after that, you should add one extra week’s notice up to a maximum of 12 weeks

>See also: Zero hours contract rights

You can terminate a zero hour worker’s contract without notice but they can also leave without any warning. And even if you offer them work during a notice period, they don’t necessarily have to take it.

How do I calculate redundancy pay?

Redundancy pay should be similar to a regular employee in that it’ll be based on age and length of service. Under zero hour redundancy, pay must be the

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

Zero hours workers may work fewer hours than their fully employed counterparts, but they have a lot of the same rights as them.

Even though the rights are set in law, the definition of a zero hours contract isn’t. Zero hours can mean different things to different companies as there’s no concrete legal definition.

As an employer, the main thing you should know is that they’re not to be used for central business processes – only to fill in smaller labour gaps like seasonal work. For more central roles, you should consider alternatives such as fixed contracts first.

Everyone on a zero hour contract has statutory employment rights, without exception. They’ll either have the status of a worker or an employee. Most will be classed as workers.

Those who are classed as workers will be entitled to at least:

The national minimum wagePaid annual leave Rest breaks (rest at work, rest between shifts or working days and weekly rest periods)Protection from discrimination

On top of that, employees have the right to (among others):

Statutory sick pay (SSP)Time off for emergencies involving dependentsRedundancy pay Parental leave

Employees will also have protection from being dismissed

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

Setting out a zero hours contract template can be more complicated than a standard employment contract.

>See also: Zero hours contracts advantages and disadvantages

You must clearly state that it’s a zero hours job and the contract should clearly outline their status and rights. How it operates and what the termination process looks like.

Note that, as of April 6, the right to written terms and conditions extends to workers – this includes zero hours workers. Employers must include terms relating to hours and days of work and how those may be varied.  

>See also: Zero hours contract rights

Below are some areas to focus on and some example phrases that you might want to use when drafting your own zero hours contracts. It’s a wise idea to seek additional advice from an employment lawyer. For more on creating general employment contracts, check out What should you include in an employment contract?

Type of work

This is where you state what kind of contract the person is on – in this case, whether they’re a zero hours worker or a zero hours employee.

Try: The Business is delighted to welcome

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

People on zero hours contracts are entitled to holiday and holiday pay, just like your regular staff.

In this quick guide, we’ll explain how to do it.

How do I calculate holiday entitlement?

Zero-hour contract employees, like any employee, are entitled to 5.6 weeks of paid holiday per year. This can include bank holidays if you wish. The rules around holiday entitlement are fairly loose, as long as you meet the 5.6 week minimum.

>See also: Zero hours contract rights

A popular method is the 12.07 per cent calculation. This is arrived at using the calculation of5.6 (weeks of paid leave) divided by 46.4 (remaining weeks in the year). So, holiday is accrued at a rate of 12.07 per cent per hour.

If a worker on a casual contract works ten hours in a week, then they would have accrued 1.2 hours holiday. (12.07 per cent of ten). If the employee worked 30 hours, they would accrue 3.6 hours of holiday for that week. (12.07 per cent of 30).

To calculate average hourly pay rate, only the hours worked and how much was paid for them should be counted. Take the

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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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