Zero Hour Contract

1431 WordsMar 1, 20166 Pages
Module Code: FC512 Class/Group: Group E Module Title: Skills for Study for Foundation Business and Social Sciences Students Assessment: Final Essay Assignment Title: Describe and evaluate the benefits of zero-hours contracts to both employers and employees Tutor Name: Dan Spencer Student ID Number: 2229804 Date of Submission: Monday, October 19, 2015 Heather Stewart, an Observer's economics editor in the guardian stated,“Now we have at least 697,000 workers in the economy who don’t know how many hours they’re going to be working.” reference Zero hour contracts are flexible agreements between the employers and employees that do not include the employee’s number of working hours…show more content…
A major advantage to the employer is the increasing power that he/she gains over the employees with zero hour contracts (Griffin, 2013). Thirdly, it is to a great extend the best backup plan to a sudden change and the solution to last-minute events (Pyper and Dar, 2015). It is also the resolution to temporary employees’ shortages (Hotel Industry Magazine, 2014). Other than that, zero-hour contract gives the employer the opportunity to employ more, which results to producing more (Hotel Industry Magazine, 2014). Due to cheap labor, it allows the coverage of various geographical locations at the same time (Freeman, 2015). This means more supply, which equals more profit. Before changes in the organisational behavior, elders were not allowed to work, which meant that their skills would not be used (Norton Rose Fulbright, 2013). However, with zero hour contracts, elders’ skills are retained and employers can benefit from their experiences (Shoesmith, 2015). In many cases, zero hour contracts employ a pool of trained and talented staff who know how the business cooperates and its procedures (Shoesmith, 2015). Consequently, this type of contracts is profitable to the employers. With this being said, zero hour contracts have no disadvantages on employers. After mentioning the advantages and disadvantages of zero hour contracts, this essay believes that zero hour contracts must be banned because it permits employers to be ravenous and to treat employees
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