courtesy of Silicon Republic[/caption]
There has been a lot of discussion in the UK surrounding Zero Hour Contracts, after it has been reported that more than 1,000,000 in the UK are working under zero hours contract, which is 750,000 more than the Government had estimated. Head of CIPD Peter Cheese has said "there needs to be a closer look at the effect of zero hours contracts, the different forms they can take and clearer guidance on what good and bad practice in their use looks like".
There is no doubt they can offer flexibility for employers, by an employee making themselves available for work for a set amount of hours each week but the employer is under no obligation to provide them with work, but questions have been raised over whether or not these are the right types of contracts for staff? and is the Irish experience different?
In the UK an employer can ask an employee to make themselves available for a set amount of hours each week but if they cannot provide hours there is no issue from the employers point of view, however the Irish experience of zero hours contracts are somewhat different. The same basic principle remains where an employer asks an employee to make themselves available for a set amount of hours and the employer is under no obligation to provide work, however, under Section 18 of the Organisation of Working Time Act,1997, if an employer cannot provide the employee with the contracted hours they are required to pay the employee at least 25% of the contracted hours or 15 hours (whichever is less).
This is how the Irish experience differs from the UK, as there is no remuneration payable to the employee in the UK if the employer cannot provide them with the contracted hours.
When looking at whether or not these are the right types of contracts for employees, you must look at the overall context of each industry, in some cases this will work out in the employees favour to have this flexibility, yet in other cases there is no security in income or hours each week which can be difficulty for more established workers, who have responsibilities and bills to be mindful of.
Unlike the UK experience employers in Ireland would be advised to steer clear of zero hours contract unless necessary, the requirement for remuneration leave an employers hands tied in that where no work is available there is still a requirement to compensate the employee.
A useful alternative to a zero hours contract would be a variable hours contract, where the hours can vary each week in accordance with business needs, however where no work is available it is essentially a case of temporary layoff for the employee.
Additional Reading: Our Northern Ireland Blog feature on Zero Hours Contracts
