What is a zero-hours contract in the hospitality industry?

A zero-hours contract is a specific type of employment agreement that is particularly common in the hospitality sector. This type of contract offers a significant degree of flexibility, allowing business owners to quickly respond to fluctuations in demand and staffing needs. But what exactly does a zero-hours contract entail? And what are the rules and limitations that apply to this form of contract? In this article, we will provide detailed answers to these questions and explore the various aspects of zero-hours contracts.

Zero-hours contract in the hospitality industry

In the hospitality sector, where the demand for staff can vary greatly, zero-hours contracts are a commonly used method. These contracts enable employers to call on employees when work is available, without guaranteeing a minimum number of hours. This means that employees are only paid for the hours they actually work, which brings both advantages and disadvantages.

Under a zero-hours contract, the employer and employee agree that there is no predetermined number of hours for which the employee will be scheduled. This means the employee must be available to work when the employer calls them in. On the other hand, the employer is not obligated to provide work. This can lead to an uncertain work structure for the employee, who may not always know when they can rely on income. It is important to understand that this type of contract is particularly attractive to employers who need flexibility in their staffing.

Legal rules for zero-hours contracts in the hospitality industry

Since January 1, 2020, the Balanced Labour Market Act (WAB) has been in force. This law introduced important changes in the way zero-hours contracts are handled and provides more protection for employees. Some key points of this law include:

Offer after 12 months: Employers are required to offer employees on a zero-hours contract a fixed number of hours after 12 months. This offer must be based on the average number of hours the employee worked in the previous 12 months. This means that after a year, employees can gain more certainty about their work hours and income.

Demand for fixed hours: Employees have the right to request a fixed number of hours if they have consistently worked more hours than stipulated in the contract. This allows employees to stabilize their work hours and avoid ongoing uncertainty about their work schedule.

Collective Agreement (CAO) provisions: Specifically in the hospitality industry, it may be agreed in the CAO that employees can be offered multiple consecutive contracts within 12 months. This provides additional flexibility for both employers and employees in this sector. It is important for employees to be aware of the CAO provisions that apply to their specific situation, as these may include additional rights and obligations.

Potential ban on zero-hours contracts

There is currently discussion about a possible ban on zero-hours contracts in certain sectors. Some people believe that these contracts can be unclear, leading to uncertainty for employees. Opponents of zero-hours contracts argue that they can result in less financial security for workers, as their work hours are often unpredictable. This could mean that employers will need to provide more certainty to their employees, helping them to better plan and manage their finances.

Conclusion

A zero-hours contract can have both advantages and disadvantages, depending on the perspective of the parties involved. For employers, it offers flexibility and cost savings, as they only pay for the hours actually worked. This can help them run their business more efficiently, especially in a sector like hospitality, where the demand for staff can fluctuate significantly. On the other hand, employees may appreciate the flexibility in working hours but may also experience income uncertainty. This can lead to stress and financial problems, particularly if they rely on a steady income.

It is important to be well-informed about the rules and potential changes regarding zero-hours contracts. If you are a business owner or employee in the hospitality industry, it is wise to seek legal advice and carefully read the CAO agreements. This can help ensure you clearly understand your rights and obligations under a zero-hours contract and prepare both employers and employees for potential changes in the law.