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Zero-Hour Contracts
Dispelling the myths of zero-hours contracts With the negative press surrounding zero-hours employment contracts, David Glover, managing director of Caremark, discusses whether they should be used in franchise businesses By David Glover, Managing director, caremark
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ompanies like Sports Direct have given zero-hours contracts a seriously bad name. A zero-hours contract is an agreement between an employer and worker where the employer isn’t obliged to provide minimum working hours while the worker isn’t required to accept any work offered. Many employers use these contracts to mitigate fluctuating staff needs and in much the same way, many people find this level of flexibility to be a suitable way to work, preferable to their circumstances. So, why has there been widespread criticism of the use of zero-hours contracts? The problem is that, on the surface, zero-hours contracts weigh in favour of the employer. Business owners can avoid paying fixed overheads and have flexibility over their workforce. Without the same employment rights as traditional contracts, workers don’t receive sick pay and there’s no obligation for employers to provide a set number of hours from week to week. A perceived lack of financial stability and security is often played upon in the media, creating a negative and unappealing image around this way
108 elitefranchise | DECEMBER 2018
Legal.indd 1
I think the main message here is that, just because zerohours contracts tend to be seen as a ‘no frills’ option, that doesn’t mean yours has to be
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30/11/2018 16:29