Zero hours holiday calculation

We recommend employers only use zero-hours agreements where work genuinely fluctuates and where the flexibility of these agreements suits both parties. Employers should avoid the practice of issuing zero hours agreements on a blanket basis to new or part time staff.

We recommend that you ensure that you are fully aware which contracts are appropriate under which circumstances, so that  zero-hours  agreements are not made for those staff for whom they are not appropriate.

Employers should monitor the working patterns and other aspects of the engagement of zero-hours workers to avoid the risk of someone who initially could genuinely be described as a worker drifting into employee status.

Where the nature of the relationship with an individual worker does change over time,we advise the issue of new  a new contract reflecting their status. This will avoid disputes and also maintain good relationships with staff who will feel more valued.

Tthe term “zero hours contract” does not have a specific legal meaning, so contracts with this label differ from organisation to organisation. However, any zero hours contract should make the following points clear:

• Whether the individual is classed as an employee, a worker or a self-employed contractor, as this will determine his or her employment rights
• The business need driving the zero hours arrangement Rates of pay;
• How holidays and holiday pay will be dealt with and calculated;
• Whether the individual is obliged to accept work that is offered;
• Any restrictions on the individual working for other employers in between engagements;
• How the relationship will be brought to an end.