What is a zero-hour contract? 

Zero-hour contracts are typically offered to employees who work inconsistent hours or schedules. The employee has the option to decline any inconvenient period. Industries like entertainment, hospitality, social and health services, academia, retail, and tourism use zero-hour contracts more frequently. Zero-hour contracts are more common in the U.K. than in the United States.

Advantages and disadvantages of zero-hour contracts

Zero-hour contracts offer both employers and workers more flexibility, which is helpful for jobs impacted by outside factors that make offering full-time employment or establishing a full-time working schedule more difficult. Employers benefit from zero-hour contracts because employers only pay workers for the number of hours they work. 

The disadvantages of zero-hour contracts are that employers risk misclassifying workers and may have to manage more complicated payroll. Employees may face more uncertainty with unreliable income and inconsistent work schedules. 

Sick pay for zero-hour contract 

Workers under a zero-hour contract are eligible for sick pay and holiday pay. Compensation will depend on the number of hours they’ve worked.