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lit review zero hour contracts
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University of South Wales

Abstract

This paper focuses on the effect that temporary employment such as zero hour contracts have on the wellbeing of employees, it gives a brief definition of what a zero hour contract is, and how they have changed throughout the years eg how they were used in previous years before being called zero hour contracts, why the use of zero hour contracts is on the rise in the UK business market, and investigates the benefits and detriments of these contracts in regards to employees, it will also look at the financial benefits to the employers who use these contracts, and the type of culture that surrounds the employees who are employed on these contracts, It will also investigate what the government plan to do once their consultation is complete to help individuals on these contracts.

Introduction

This paper provides a brief definition of what a zero hour contract is, an employee perspective on the benefits and detriments of the use of zero hour contracts. The effect on the employee’s wellbeing whilst employed on said contracts, and also what sort of organisational culture surrounds those on zero hour contracts, how this in turn may have an effect on their wellbeing. Why the use of zero hour contracts are on the rise, and so prevalent in the UK market, it will also investigate what the government plan to do once their consultation is complete to help individuals on these contracts.

The aim of this research is to establish how zero hour contracts came into existence, why zero hour contracts are used, and what effects these contracts have on employees.

What is a zero hour contract?

‘Zero-hours contract’ is not a legal term. The CIPD Labour Market Outlook survey (2013) defines it as:

‘an agreement between two parties that one may be asked to perform work for the other but there is no set minimum number of hours. The contract will provide what pay an individual will get if he or she does work and will



References: Pennycook, M, Cory, G and Alakeson, V (2013) A Matter of Time: The rise of zero-hours contracts Department for Business, Innovation and Skills (BIS) (2013) The 2011 Workplace Employment Relations Study (WERS) Burchell, B, Deakin, S, and Honey, S (1999) The Employment Status of Individuals in Non-standard Employment. March 1999 (http://www.dti.gov.uk/files/file11628.pdf) Accessed on: 26/2/2014. Jowett, A, Taylor, C, Hardie, M, Khan, Z, (2014) An International perspective on the UK-Labour Market Performance January 2014 (http://www.ons.gov.uk/ons/dcp171766_351306.pdf) Accessed on 27/2/2014. Unison zero hour contracts (2014) Available at: https://www.unison.org.uk/upload/sharepoint/Briefings%20and%20Circulars/Zero%20Hours%20Factsheet.pdf Accessed: 21/3/2014. CIPD (2013) Zero Hour Contracts: Myth and Reality November 2013 Available: http://www.cipd.co.uk/binaries/6395%20Zero-Hours%20(WEB).pdf Accessed: 12/2/2014. Hoque, K (2013) Zero hour contracts harm economys long term health September 2013 Available at: http://www2.warwick.ac.uk/knowledge/business/zero-hours-contracts-harm-british-economys-long-term-health/ Accessed: 21/3/2014. Eleanor Rodgers (2013) Advice and Guides Available at: http://realbusiness.co.uk/article/23403-how-to-reduce-the-risk-of-zero-hours-contracts Accessed on: 31/3/2014. Ian Brinkley (2013) The Work Foundation Available at: http://www.theworkfoundation.com/DownloadPublication/Report/339_Flexibility%20or%20Insecurity%20-%20final.pdf Accessed on: 31/3/2014.

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