Zero hours contract template

By Anna Jordan on Small Business - Advice and Ideas for UK Small Businesses and SMEs In this article, we'll give you a run through of what you should be including in your zero hours contract template The post Zero hours contract template appeared first on Small Business.

Zero hours contract template

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 you as a zero-hours worker/employee. Under this type of employment, you are entitled to a number of rights including protection from discrimination, rest breaks and the national minimum wage.  

Status of agreement

A status of agreement is where you set out the intent and what you’ve discussed prior to signing the contract.

Try: This contract will set out the necessary terms agreed between you and the Business as to how and when you will carry out your work.  

How work will be carried out

In this section you’ll go over the place of work, who you report to and how you’ll be notified of shifts.

Try: Your normal place of work will be [place of work] or we may owe you work at various destinations. The locations will be within [a specified range].

You will be paid [£x] per hour for the hours you work, minus tax and national insurance deductions.

You will be paid [monthly or weekly] on or around [specified time frame]. Payments will go directly into your nominated bank account.

You will be entitled to the following benefits: [List benefits available]

For every [x hours worked], you’ll be entitled to a break of [x hours/x minutes].

You will report to [manager’s name] when you come to work or if any issues arise.

We’ll normally notify [type of worker] with shifts [mode of contact/process]. We may vary these from time to time. If you are unable to do a shift, contact [manager’s name] as soon as possible. If we must cancel one of your shifts, we’ll let you know as soon as possible. We have the right to terminate shifts for reasons pertaining to the business.        

Holidays

This is as it sounds – holiday entitlement and pay.

Try: Your holiday entitlement will be equivalent to 12.07 per cent of the hours you work in each holiday year. We calculate this on a pro-rata basis, depending on the number of hours worked.

The holiday year will run between [x date and x date] each year inclusive.

At the end of each year, [name of your business] will pay you in lieu of any holiday accrued for the holiday year in which the assignment ends. The amount of the payment in lieu will be calculated on the basis of:

  • 12.07 per cent of the hours that you worked in the relevant holiday year
  • Minus any hours of holiday that you have taken in that holiday year
  • Multiplied by the average hourly rate payable over the last 12 weeks in which you earned pay from us

Absence due to illness

Again, an obvious one. It goes over what sick pay they’re entitled to and which hours/shifts it applies to.

Try: If you meet the legal conditions, you are entitled to Statutory Sick Pay (SSP) for the period of sickness for your agreed hours.

Termination and changes to contract terms

This section stipulates what happens if either of you want to terminate the contract and if there is a notice period involved.

Try: If you no longer wish to work with us, please inform [specified person] and we’ll terminate your contract [with immediate effect or with specified notice period]

Read more

Zero hours contract redundancy

The post Zero hours contract template appeared first on Small Business.

Source : UK Small Businesses More   

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Zero hours contracts advantages and disadvantages

By Anna Jordan on Small Business - Advice and Ideas for UK Small Businesses and SMEs In this article, we explore the advantages and disadvantages of zero hours contracts for you as an employer The post Zero hours contracts advantages and disadvantages appeared first on Small Business.

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 for the hours that they’ve worked, rather than paying salaries.

Can lead to longer-term/full-time employment

If your business takes off, you can take on your zero hours staff on a part or full-time basis. The prospect of more secure employment can encourage zero hours workers to take shifts with you over other employers.  

Be careful about contract rights because it’s a fine line between a zero hours contract worker and an employee. Read more at contractual rights, by heading over to Zero hours contract rights.         

Disadvantages of zero hours contracts

Higher turnover because of unguaranteed work

Conversely, you might find yourself with less worker reliability because workers can’t get the secure level of employment they need. This is why it’s important to encourage worker loyalty, such as not cancelling shifts at the last minute. 

Difficulty getting staff, especially at short notice

Zero hours is (in theory) as much of a flexible working arrangement for them as it is for you. Just because you ask for your staff to work doesn’t mean that they have to accept it.  

Different people doing the same job

If you’ve got different people doing the same job, then the quality of the work will inevitably be different. This might not matter too much in some roles, but if it is something more specialised it’s a factor worth taking into consideration.    

Working out holiday pay and redundancy

This can be difficult to work out, but you can make things easier for yourself. Read on at Zero hours contracts holiday entitlement and holiday pay.

Redundancy is also a tricky area with zero hours contracts. Find out more at Zero hours contract redundancy.

Establishing company culture and values

With high turnover in workers and employees it is more difficult to establish what your business’ vision is and what values it operates by.

How do I create a zero hours contract?

With new laws put in place in recent years, not messing up your zero hours contracts is crucial. Try following this zero-hour contract template to keep in check: Zero hours contract template.

Do you use zero hours contracts? What are the advantages and disadvantages in your opinion? Let us know in the comments below.

Read more

What employers need to know about zero hours contracts

The post Zero hours contracts advantages and disadvantages appeared first on Small Business.

Source : UK Small Businesses More   

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