Use of zero hours contracts unfair warns Exeter CAB

Local charity, Exeter Citizens Advice Bureau, says that the use of zero-hours contracts are hitting employees hard as they are unable to budget or plan long-term.

Zero-hours contracts mean zero responsibility for too many employers. The charity is seeing too many people who are denied work because they become pregnant or suffer an illness.

This type of contract can also mean fluctuating incomes that cause havoc with people’s benefit claims, denying them much-needed income when the hours dry up.

Steve Barriball, Chief Executive of Exeter Citizens Advice Bureau said: “We’d like to see flexible contracts come with minimum hours or minimum pay agreements. Clarity around redundancy and holiday pay would be a first step towards stopping this out-dated exploitation that has no place in the Twenty First Century.”

Evidence from the Citizens Advice service shows:

Workers are "dismissed" with little or no due process. Employers rarely dismiss a zero hours worker - they are simply told there is no work for the time being. This leaves workers unsure of their position, and whether they should or can claim benefits. Although it is possible they may be able to claim unfair dismissal or redundancy pay, the fact that they believe they may get further work can mean they do not seek advice for several weeks at which point it may be too late to try to make a claim.
Workers are susceptible to abuse of their basic rights e.g. no holiday pay. Confusion about holiday rights for casual workers is not surprising given that there are no clear rules for determining entitlement for casual workers.
Some employers offer zero hours contracts as the only option to existing staff who request more flexibility in hours because of care commitments or who want to continue working beyond a retirement date
Pregnant workers may have their hours reduced.
Workers are liable to having their hours reduced to zero if they take time off sick.
Fluctuations in income can wreak havoc with claiming crucial benefit payments, make it difficult to budget and can hit pension contributions
Difficulty claiming "in work" benefits such as working tax credit because there is no guarantee of minimum hours. Where hours fluctuate, they can be averaged over whatever period gives the best reflection of normal working hours. However significant variation in hours can mean individuals alternate between benefits. They can generate overpayments and with that, the recently introduced civil penalties.
Difficulty renting in the private sector because landlords and agencies regard them as at risk of rent default if they have no guaranteed income.

People on zero hours contracts still qualify for certain employment rights. It can be a complicated area, but the following top tips might help:

Mutuality of obligation –if a worker is obliged to provide a skill or own work and someone else is obliged to pay them for this work, an employment contract may exist. If an employment contract is established then you become an employee and are entitled to all the normal rights of an employee; for example a contract, notice pay, and holiday pay. If you think you may be an employee and are in this position, you can seek advice from ACAS, Citizens Advice or a solicitor.
You are entitled to the national minimum wage if you are on call. For example if you are expected to wait next to a telephone all day as work may be needed this may mean you should be getting paid for these hours. If you are not been paid the national minimum wage for being on call you can seek advice from ACAS or Citizens Advice.
As a worker you are still entitled to rest breaks and limited working hours
As a worker you are entitled to holiday pay for hours accrued.
As a worker as a general rule if you pay income tax then you are likely to be entitled to statutory sick pay.

More information about rights at work can be found online at: www.adviceguide.org.uk