downside for nurseries, says Jacqui Mann.
There's been lots of talk about zero hours contracts and how some abuse them. There is a Government consultation on their use, which ends on 13 March 2014. The Government makes it clear it wants to 'maximise the opportunities of zero hours contracts while minimising abuse and setting out core standards that protect individuals'.
So what is a zero hours contract?
It is an employment contract which means the employer is not obliged to provide the worker with any minimum working hours, and the worker is not obliged to accept any of the hours offered.
Usually zero hours contracts will give employees 'worker' employment status and they will have the same employment rights as regular workers. They may have breaks in their contracts, which will affect rights that accrue over time. Zero hours workers are entitled to paid annual leave and minimum wage.
Why use zero hours contracts?
They can provide great flexibility for your nursery.
- You may need workers to cover temporary staff shortages.
- Bank or agency staff, can be more expensive.
- No ongoing requirement to provide guaranteed levels of work for staff.
But one of the real downsides to zero hours contracts is that the worker has no ongoing requirement to accept offers of work.
One nursery owner asked me, 'Can I put all my staff on zero hours contracts?' The question I ask is 'Why'? You have no real control over when staff work, as they might not accept work on the day you need them. The consequences for your nursery and the effects on ratios could be disastrous.
Employment status
Usually zero hours contracts mean that an employer recruits a 'worker.' Depending on how the relationship develops, the status may change to 'employee', which means additional employment rights.
If the relationship goes wrong an employment tribunal will decide what contractual relationship exists between employer and worker. My advice is only use zero hours contracts if you want to have some flexibility. Once staff are working regular hours change them on to a permanent contract, as in the eyes of the law they may be classed as an employee.
Jacqui Mann is MD of HR4 Nurseries