Introduction
In today’s business, zero-hour contracts are becoming more typical. However, they have come under heavy fire as a means for companies to exert more authority over their workforce. Interestingly, some research suggests that people with zero-hour contracts are more likely to experience psychological discomfort and are less prone to feeling healthy than people with jobs (Piasna, 2019). However, zero-hours agreements still allow workers to work at their speed and enable businesses with limited resources to continue operations. Nevertheless, it is possible that this type of contract can minimize employees’ benefits and works mostly in favor of the employer. Still, it depends on how the hirer managed to use it in the company’s practice. Thus, the essay aims to discuss the impact of zero-hour contracts on fair work conditions and employees’ contract rights.
Fairness and Justice
There are several circumstances under which zero-hour contracts by corporations are acceptable. For instance, when a company is starting to operate in the market and is unsure about demand, peak hours, or the size of its client base. If an employer has seasonal employment when employees are needed to handle the high request at specific periods of the year, they may use zero-hour contracts (Schmuecker, 2014). In the end, it cannot be used to avoid employment and deny typical employees what they are legally entitled to regard job stability, regular pay, and benefits (CIPD, 2013). Zero-hours contract is not a unique category; the title serves only as a collective term for disguising the exponential rise of unskilled labor in a complex and fragmented workforce (CIPD, 2013). While legal involvement in the contracts as an unsettled labor market issue is way overdue, the modern debate enclosing these work conditions is fundamentally flawed.
Thus, ongoing efforts to regulate zero-hour contracts mark a substantial movement towards normalizing even the most extreme abusive employment practices, leaving an ever-increasing proportion of workers without access to employment protection rules. Numerous app-based businesses have evolved in collaborative consumption and the gig economy, dramatically changing how services are delivered (Briken & Taylor, 2018). The production of firms that provide such services is divided into smaller jobs, their whole production is outsourced to a large number of individual contractors via an app or website, and each position is hired as needed. Organizations like Uber introduced new types of employment, Lift, Glovo, or Amazon Mechanical Turk, changing the parameters of labor law (Ginès Fabrellas, 2019). Because of this, these businesses may now deliver their services through independent contractors rather than by recruiting employees. Since platform employees are not bound to a set working schedule and have complete control over their schedule, working hours, and even their willingness to work, on-demand employment requires the usage of the zero-hour contract.
Benefits of Zero-Hour Contracts
There is no denying that businesses and employees both benefit from zero-hours contracts. The added flexibility is a feature that the personnel and the company value since employees and business owners cannot always arrange a flexible schedule that would suit both of them. Employers who have zero-hour contracts just need to hire workers as needed. As a result, they are spared the expense of hiring personnel before the company truly requires them. This is particularly helpful for businesses that offer customer support or any type of position with a fluctuating peak hour (Grady, 2017). The ability to work whatever suitable time is an advantage for employees that not many jobs can offer. They may pick up more shifts when they have spare time, but they also have complete autonomy if they feel they need a considerable period off.
Regarding the employers, flexibility is the main benefit of having zero-hours contracts. Reacting quickly and efficiently to business swings is crucial for any organization. Employers can deal with unforeseen and specific events by hiring people on zero-hours contracts, which is the most suitable solution in such cases (CIPD, 2013). It also helps to be adaptable while starting a new company or dealing with changing or restricted finances. In addition, it might be annoying to observe workers fidgeting when receiving compensation. Therefore, businesses find zero-hours contracts quite appealing and useful to implement in their practices. Business owners are not required to give them work below a zero-hours contract, and they only receive payment for their work hours. Employers would consider prices while comparing various hiring choices because it is one of the most financially consuming parts of entrepreneurship (Grady, 2017). It may be less expensive for an organization to hire workers on zero-hour contracts than to pay an agency worker’s service charges and commissions.
However, employees also receive advantages working under zero-hour contracts. They have the option to decline a shift that will not be worthwhile. Businesses are not required to offer further shifts, which can lead to a scam. There is a possibility to search elsewhere if a person is not receiving regular hours since zero-hour contracts no longer allow exclusivity restrictions that prevent people from working elsewhere. Due to budgetary constraints, a firm may only be able to provide a zero-hour warranty (Piasna, 2019). This implies that there is access to a greater range of work opportunities and perhaps a higher chance of gaining worthwhile experience. There is also a possibility for permanent employment because some businesses provide fixed or permanent contracts to dependable zero-hour contract workers as an incentive. This implies that working hard throughout the contract might help to secure a reliable income.
Disadvantages of Zero-Hour Contracts
The adaptability of these kinds of contracts, meanwhile, might work against employers. Finding someone to do the necessary tasks might be challenging because people are not required to accept work. This may be the case, in particular if individuals are needed immediately. Employers are also concerned that various persons can perform the same task. This might result in variations in the delivery of services and job quality (CIPD, 2013). To prevent issues, it is critical to check that everyone is adhering to company standards so the quality of everyone’s work is consistent. It can be challenging for companies to determine holiday compensation, annual leave accrual, and if the employment agreement remains among commitments and employment status (CIPD, 2013). Zero hours contracts are also problematic for businesses. Making a mistake here might result in different kinds of claims.
For workers, contracts with zero hours might indicate a lack of actual work stability and a set salary. They are unsure of when their next shift or paycheck will arrive. They might not be able to accept the job if it is offered with little advance notice, and they might have no employment if the employer cancels it at the last minute. They are put in a vulnerable situation since it is harder for them to prepare. Because there are no fixed hours, the weekly earnings will fluctuate. While there could be much work in one week, there might be significantly less the following week. In addition, employers with zero hours are not required to offer their workers pension plans, sick days, holiday pay, or redundancy compensation (Koumenta & Williams, 2019). It is harmful to social life because the person is most likely to be waiting at home and skipping usual social events to avoid losing out on tasks from the job.
Conclusion
The employer continues to have most of the authority under zero-hour contracts; thus, this is still the case. Business owners should responsibly use zero-hour contracts, specifically by doing so only when required and when it is the employee’s desire. The idea behind these agreements does not have to be inherently harmful, but employees should be what it is, not being exploited to give companies more power over their employees. Despite all the disadvantages, such as unpredictable working calls and unstable pay, zero-hour contracts are great options for students and temporary jobs, especially if the employer provides decent working conditions. The impact that using zero-hours contracts by employers may have on notions of justice and fairness is high and can be both positive and negative. In certain cases, it might be used to exploit the employees and overuse the contract conditions, which are not correlated with the principles of justice and fairness.
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