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Should you take a zero hours contract?

payslipWe’ve been hearing a lot about zero-hours contracts lately, and it’s an issue that affects Scotland in a big way, with the Herald recently reporting that nearly 120,000 Scottish employees are currently on contracts with no guaranteed hours. But amidst all the fears that workers are being given less security and little benefit for signing these agreements, are there still good reasons for taking a zero-hours contract, especially for those who choose a freelance or casual work pattern?

The scoop on zero-hours contracts

So what are zero-hours contracts exactly? The term simply means being hired by a company without a specified number of hours – in other words, there’s no guarantee that you will get any work. You might be called on to work at very short notice, but equally could go several weeks without, in effect, a job. You should get holiday benefits but not usually sick pay, and in most casual contracts, you are not obliged to take any shifts that are offered. This type of contract is used in various employment situations, when casual staff are needed for one-off events, or to cover temporary absences and holidays. The sectors that most commonly use zero-hours contracts are retail, hospitality and catering and sometimes healthcare, for example when care homes need extra care for a client over a short time period.

When are zero-hours contracts a good thing?

Workers on casual contracts are not a new thing. Plenty of students or part-time workers are employed on a casual basis for companies in events management and silver service catering, with work coming up as and when it’s required and employees accepting it as and when they’re able. This may not be ideal if you’re running low on funds and need regular work, but for many, it makes a flexible compromise, with occasional extra cash as a bonus. Similarly, freelance workers often sign temporary contracts with creative or marketing agencies, which start when a job is ordered and finish as soon as it is complete. This means neither the employee or the employer are tied to a fixed amount of hours or projects; again, this is not secure, but many people make a freelance lifestyle work by signing on with several employers on a casual contract and balancing their workload according to their own availability and the work that’s up for grabs. bar work

When zero-hours contracts cause problems

The reason that these types of contracts have caused so many news stories recently is that people who have been struggling to find work are often forced to take zero-hours contracts when what they actually need is steady employment. In addition, employers know that those on zero-hours contracts will often need the money, and are therefore unlikely to turn work down. This can lead to employees accepting poorer rates of pay and longer, unsociable hours. Employers may also pick and choose who they prefer to offer work to, leaving others with less financial reward as a result. A survey conducted by the Chartered Institute of Personnel and Development has found that many people complain about not getting enough hours of work to live on, and being effectively unemployed whilst on casual contracts, which could affect the accuracy of unemployment figures for Scotland and the wider UK. However, as many as 38% in the survey said that they currently had full-time hours on a zero-hours contract, so, despite the unpredictability, these contracts can prove sufficient.

Think before you sign

It obviously depends on your personal situation as to whether you should sign on that dotted line. If you have a financial buffer zone or you are employed by several companies on a freelance basis and can afford to be out of work for weeks at a time, there’s nothing wrong with entering into such an agreement. But, if a previously-unemployed person on benefits is signing up for a position with even less security, this is clearly not always a good route to go down. The issue continues to be debated across the UK, with unions like Unite calling on the Westminster government to reform legislation. But with several big brands such as JD Wetherspoon, Cineworld and Sports Direct employing the majority of their workforce on such contracts, and the National Farmers Union heralding the flexibility as a good thing for their industry, the issue is far from resolved.   Images by George Grinstead and Hajotthu, used under Creative Comms licence.