Zero-Hour Contracts: The Newest Way Workers Are Getting Screwed

Source: Workplace Prof blog, December 6, 2014

zero-hour contract is a “contract” of employment creating an on-call arrangement between employer and employee and in which the employer asserts it has no obligation to provide any work for the employee. It’s become common in the United Kingdom, and apparently is being “offered” to employees by many American-owned companies including McDonald’s and Burger King. In many ways, it’s similar to just-in-time scheduling that has become increasingly common in the U.S. retail/fast-food economy, except that in some weeks an employee many receive zero work hours.

Ewan McGaughey (King’s College London) has just posted on SSRN his essay Are Zero Hours Contracts Lawful? Here’s the abstract:

Are zero hours contracts lawful? This note responds to the DBIS consultation on banning exclusivity clauses (August 2014). It asks the following: what is a zero hours contract? To what extent are zero hours contracts legal? Why have zero hours contracts spread? And finally, what is the right thing to do?