Zero-Hours Contracts (Research Paper Sample)

Zero-Hours Contracts Student’s Name Institutional Affiliation Introduction Zero-hours contract is an employment agreement between the worker and the employer without a minimum number of hours set. The boss is not obligated to offer a job, and the employee is not compelled to take the deal. Nearly 64% of the employers classify the zero-hours workforce as employees, while less than 19% describe the zero-hours workforce as workers (Chartered Institute of Personnel and Development 2013). The zero-hours personnel are entitled to the national minimum wages and annual leaves just like regular workers (Reilly 2010). Government surveys show an increase in the workplaces that use the labor force on zero-hours agreements from 4% in the year 2004 to 8% in the year 2011 (Chartered Institute of Personnel and Development 2013). The survey found out that larger firms have a likelihood of using zero-hours contracts, with estimates of 23% chance for the workplaces with 100 or more workers. Restaurants and hotels sector were the most likely workplaces to utilize zero-hours deals, with 19% proportion in 2011. The health second has the second highest percentage at 13%, followed by a 10% for the education sector in 2011. The estimates by Skills for Care indicate that 307,000 grown-up social workers in England work under the zero-hours contracts as per May 2013 (Chartered Institute of Personnel and Development 2013). The zero hours contracts are standard for the domiciliary care services staff. The labor force investigation indicates that the weekly hours vary for the employees working under zero-hours contracts. Consequently, the weekly hours for the zero-hours contracts are considerably more unstable compared to the weekly hours variations experienced in conventional contracts. Analysis Section The zero-hours contracts are controversial since there are concerns that the contracts do not offer adequate financial security and stability. The zero-hours contracts are unfair, and they create exploitation and insecurity for the ordinary people who struggle to get along. Zero-hours contracts represent another form of under-employment that blights the economy of British (Chartered Institute of Personnel and Development 2013). Companies use the zero-hours contracts to cut down wages, avoid pensions, and holiday pay or other benefits that agency staff and employees enjoy (Chartered Institute of Personnel and Development 2013). According to Unite, the low-paying sectors, for example, the retail, docks, social care and catering, such precarious work has increasingly become the norm. These agreements serve to trap the employees in poverty, as well as exploitation. The workers under zero-hours agreements are at risk of misuse, with nearly all earning below the living wage. The zero hours contracts workers are subject to exploitation since the companies might deny them the work for any reason at any time (The Irish Times 2014). The ZHC workers in some cases do not work for prolonged periods due to denial from the employers. The CIPD survey found out that some workers (16%) experience insufficient working hours each week. There are usually, more uncertainties about when the zero-hours contract workers will get the work and over the required working time (Chartered Institute of Personnel and Development 2013). Additionally, the zero-hours deals present troubles for people with children because of the unreliability of the employee’s schedule, making it difficult for these workers to organize child care. The lack of routine income and working hours makes it hard for the moms to budget and arrange childcare. Moreover, the zero-hours contract workers require flexibility in relation to when to work since the personnel typically, have an established pattern or set hours of work (Chartered Institute of Personnel and Development 2013). As a result, the option to decline work is usually, not available. This lack of job security in most cases affects the confidence plus the general job satisfaction and well-being (The Irish Times 2014). The insecurity that these contracts foster can hugely impact the workers’ abilities to make fiscal plans (Chartered Institute of Personnel and Development 2013). In addition, a drastic reduction in the number of working hours could subject the workers to the inability to cope financially. The CIPD analysis of the zero-hours workers demonstrates that the level of uncertainty amongst the zero-hours contract staffs over the employment benefits and rights entitled to them is high (The Irish Times 2014). The employment rights of the zero-hours workers are not identical to the employment rights of the traditional contracts. This dissimilar job right means that companies use these contracts to avoid business responsibilities to the workers. These workers do not usually, receive the complete range of benefits and are not subject to the policies and procedures of the firm (Chartered Institute of Personnel and Development 2013). Consequently, zero-hours contract workers might feel disconnected with the business since they are not as incorporated as other employees. Furthermore, the zero-hours contract worker wishes to leave the company’s employment, an employee might undergo post-termination restrictions since the organization desires to protect the business (Chartered Institute of Personnel and Development 2013). The worker must also have a notice time. The CIPD also warns that the organizations might take advantage of these deals through using them as management tools (The Irish Times 2014). For example, the companies might offer more working hours to the favored workers and fewer working hours to the less valued employees. Additionally, concerns exist that the zero-hours workers might experience difficulties in obtaining credit cards and mortgages since these workers lack a guaranteed income (The Irish Times 2014). There is also evidence revealing that in cases where the companies use zeroing down as a managing tool, the zero-hours contracts have an adverse effect upon the staff under these conditions (The Irish Times 2014). The contracts impact upon the willingness of these workers to report unsafe working environments, complain about unjust treatment or assert legal employment rights. The zero-hour contract workers receive the menace of having one’s working hours reduced which deter persons from raising any issues with the employers (The Irish Times 2014). This dynamic exacerbates with the fact that most zero-hour contract workers get paid lowly, and they feel comparatively powerless at the workplace. In the real sense, there contracts do not provide much flexibility since if the worker ever complains to the manager or turns down hours, that employee just stops receiving offered work. These contracts, consequently, only work in one way, the employer’s way. On the contrary, many companies support the agreements, arguing that the zero-hours contracts offer a flexible labor market (BBC News 2014). CIPD defends the contract arguing that zero-hours workers in the UK are satisfied with the jobs and happier with the work-life balance than the average UK worker. The zero-hours workers are less expected to think about unfair treatments by the organizations. According to the CPD (2013), a flexible working schedule fits the current circumstances of the zero-hours workers since 44% are satisfied with no minimum set agreed hours. Moreover, the workers are not obligated to take the work and so they have the freedom to turn down or accept the work, in line with their needs (BBC News 2014). The parents, for example, could fit the work around the childcare and the students can fit the work around the studies. This flexibility permits such workers to work where the other commitments of zero-hours workers may otherwise mean their incapacity to work. Furthermore, 72% of the zero-hours workers believe that they have a lot of option over the how long they work (Department for Business, Innovation and Skills 2013). 52% of these workers are satisfied with the usual weekly working hours, and only 38% would like extra working hours in a week. In addition, approximately 80% of the zero-hours employees are never punished for unavailability for the work. CIPD survey indicates that only 17% of the zero-hours workers receive penalties if they are unavailable for work. These workers have shorter periods of notice and are exposed to fewer post-termination restrictions. Employers argue that the zero-hours contracts are attractive schemes since they allow the company to take on employees in response to the fluctuating demands for the services (Reilly 2010). The contracts allow the organizations to make a maximum use of the flexibility of the workforce and more quickly adjust to the variations in the demand (BBC News 2014). Additionally, the contract is specifically an attraction proposition for the companies during a fiscal downturn. Accessibility to the readily available labor pool via an increase in the amount of employees on the zero-hours contracts allows adjustments to the staffing levels (Bennett 2013). The managers can also use the contracts to reduce the wage bill costs. In effect, the contracts allow the firms to shift the burden of unbalanced demand onto the labor force. In the current loose labor market, the companies can quickly move the demanding weight onto the workforce since the job opportunities are inadequate, and the company can easily recruit. Zero-hours contracts also permit the companies to manage risks best (Department for Business, Innovation and Skills 2013). For example, employing a percentage of the company’s labor force on a zero-hours agreement can allow the company to adapt to the serious market fluctuations. So, companies can manage the risks throug...