If you’re following the business news this week, you’ll know that one story dominates: Scotland.
Away from that, there’s also news about a likely increase in business rates and a case against Sports Direct from its zero-hours workers.
Top news stories
Businesses split over vote for Scottish independence
100 new figures from the world of business have added their names to a newspaper advert supporting independence. But there have also been businesses joining the no campaign too. Find out what a yes vote might mean for small businesses.
67,000 small firms in England face above-inflation rises in their rates bills next year
The end of transitional relief for small businesses in April 2015 has coincided with a decision to postpone a revaluation of the property values. But the Department for Communities and Local Government has rejected the research.
EE predicts an increase in use of bigger screen smartphones by small businesses
More than one in five small business employees plans to buy a 'phablet'.
Small businesses increase staff training and development after cutting back during the recession
Research shows that the number of employees with structured personal development plans has increased by 8%.
Sports Direct faces claims over excluding zero-hours staff from bonus scheme
The company faces legal action from 250 workers excluded from a multimillion-pound bonus scheme.
Key dates for your diary
No important dates this week.
What rights do staff have who are on zero-hours contracts?
With Sports Direct facing a £4 million claim over their treatment of workers on zero-hours contracts, we look at the pros and cons of employing people on these terms and what rights these workers have.
What are zero-hours contracts?
The Chartered Institute of Personnel and Development estimates that there are 1 million people on zero-hours contracts.
These contracts offer lots of flexibility as they give no guarantee of the minimum number of hours to be worked. This means your employee only works when you need them and you only need to pay them for those hours.
However, the worker can turn down the hours you offer and they can have similar contracts with other companies, which means they may not be available when you need them. Some companies have exclusivity clauses in contracts but Vince Cable is moving to ban these.
The pros and cons of zero-hours contracts
Pros |
Cons |
You only pay for the work they do No commitments |
Complex legal area – get advice No guarantee of availability |
Your legal obligations to workers on zero-hours contracts
In general, these are the legal rights of workers on zero-hours contracts:
- Staff on these contracts will normally have 'worker' employment status. However, in some circumstances they may have enhanced employment status and be an 'employee'. This gives them additional employment rights.
- Zero-hours workers are entitled to annual leave, minimum wage and pay for work-related travel.
- They have the same employment rights as regular workers, although breaks in their contracts will affect rights that accrue over time.
- They have rights covering travelling time and waiting between jobs.
- If a worker needs to be on-call and on your premises, they should receive at least minimum wage for that time.
This is a tricky area of employment law, so if you’re thinking of employing people on these grounds, be sure to seek legal advice. You need to make sure the contract is clear and that you’re fulfilling your legal obligations.