A zero-hour contract is a type of employment agreement where the employer does not guarantee a set number of work hours. Instead, employees are called to work only as needed, and their hours can fluctuate from week to week or even day to day. This contract provides flexibility for both the employer and the employee, but it can also result in unpredictable income and job insecurity for the worker.
For example, a retail store may use zero-hour contracts to manage peak shopping times during the holiday season. Employees may be scheduled to work only when there is a high volume of customers, and their shifts may vary based on the store’s needs. This arrangement allows the employer to adjust staffing levels according to demand, while employees benefit from the opportunity to work without a fixed schedule.
Related Terms:
- Casual Employment: Work that does not have a guaranteed number of hours and can be irregular.
- Freelance Work: Independent work where individuals are hired for specific tasks or projects without a fixed schedule.
- Part-Time Employment: Employment with fewer hours than a full-time job, typically with a set schedule but fewer weekly hours.