05 August, 2013
With the Government set to review the use of 'zero hours' contracts in response to Union calls to ban them an Employment Solicitor at Forbes Solicitors is warning Employers that, despite the flexibility, they do not come without risks.
It is estimated that there are over 200,000 people employed on zero hours contract, under which an Employee agrees to be available for work as and when required and the Employer does not agree to provide hours and will only pay for work actually carried out. These contracts are popular in the hospitality and leisure industry together with the education and healthcare sector.
Jonathan Holden, Employment Solicitor at Forbes comments, "It is important to note that under such contracts, Employees are able to accrue leave and as such after two years (or one in the case of unfair dismissal if the Employee commenced work prior to the 6th April 2012) the Employee is eligible to claim Unfair Dismissal and Statutory redundancy pay. It is absolutely vital in guarding against costly legal disputes on employment status that Employers ensure that their chosen contracts for staff accurately reflect the reality of the working relationship."