Zero-hour contracts hit the headlines recently with the Scottish Trades Union Council claiming that almost 85,000 workers in Scotland were tied to this form of “bonded labour”.
In addition, the House of Commons’ Scottish Affairs Committee has called on the government to abolish zero-hour contracts because it believes unscrupulous businesses are taking advantage of the controversial employment agreements.
Under the contracts, employees essentially agree to be available for work as and when required – but with no guarantee of any work.
Grahame Smith, general secretary of the STUC, said: “They are in effect tied to that employer, waiting at the whim of the employer to know whether or not they are going to be working, how many hours they are going to be working and, of course, what income they are going to derive from that work.”
PJ Chalmers, director of Aberdeen-headquartered employment-law specialist Empire, urges employers to ensure they are using these contracts appropriately.
He said: “Organisations often use zero-hour contracts under the assumption that the individual will be available for work, but the organisation will not be obliged to provide work – effectively treating the individual as a casual worker rather than an employee.
“A casual worker would not have the same rights as an employee, such as the ability to take an employer to a tribunal for unfair dismissal. However, organisations should be wary of putting too much weight on a zero-hour contract. Just because it suggests worker on paper, it does not necessarily mean that in practice.”
Some employers, he added, might offer zero-hour contracts with the intention of getting round the various legal tests which can be used to assess employment status.
“But if an individual is managed by the organisation; is required to be available for work and cannot provide a substitute; has their performance monitored, and does not take any financial risk or liability, they are likely, in the eyes of the law, to be an employee. And, in that case, they have the same legal rights as an employee.
“In addition, if they have regularly worked for the same organisation for some time, they may gain rights related to continuity of service, for example, redundancy pay and the right to claim unfair dismissal.”