Member Article

Casual worker contracts: a suitable alternative to zero hours contracts?

Casual Worker Contracts are not the same as Zero Hours Contracts.

The basic difference between Casual Worker Contracts and Zero Hours Contracts is that anyone working under a Zero Hours Contract has employed status. This gives rise to employment rights as with other employed staff. A Zero Hours Contract contains provisions which create an on-call arrangement between the company and those working under a Zero Hours Contract. It does not oblige the company to provide work for staff working under a Zero Hours Contract, nor does it oblige staff working under a Zero Hours Contract to accept the work offered.

Those working under a Casual Workers Contract are not employees but are described as Workers within UK employment legislation. A Casual Worker Contract does not give rise to a relationship of employer and employee. There is no mutuality of obligation whatsoever between the parties. This means that the company is not obliged to offer work to those engaged under a Casual Worker Contact, nor is the worker obliged to accept any offer of work made by the company.

Common Law Duties and Conduct

A worker will still owe the company the usual common law duties expected, which will include:-

• ensuring the conduct is not detrimental to the interests of the company
• ensuring services are carried out with reasonable care and skill to a standard reasonably expected by the company
• complying with the company’s policies, procedures and practices
• take reasonable steps to ensure own safety and the safety of others
• comply with all reasonable instructions and requests within the scope of the agreed services and duties

Annual Holidays

Workers are entitled to 5.6 weeks paid holiday a year (subject to a maximum of 28 days), inclusive of any public/bank holiday entitlement. Entitlement for part-time work is calculated on a pro-rata basis. The company must make an additional payment equivalant of the hourly rate for each hour worked as payment for annual leave accrued. The additional payment, for the sake of clarity, must be separately detailed on the pay notification.

Sick Pay

Workers are entitled to Statutory Sick Pay, (SSP) provided the worker meets the qualifying SSP conditions.

Notice

There is no requirement on either the worker or the company to give notice to end the agreement.

Although there is no formal agreement to give notice of termination of the agreement, both the worker and the company would agree to inform the other, if either decides not to provide work for the other.

If you are considering offering either; Zero Hours Contracts or; Casual Worker Contracts to anyone, then please contact the writer for more information.

This was posted in Bdaily's Members' News section by Andrew Dane .