Zero-Hours Contract vs Casual Contract
Last updated: February 2025
Quick Comparison
| Aspect | Zero-Hours Contract | Casual Contract |
|---|---|---|
| Ongoing relationship | Continuous employment relationship exists even without hours | No employment relationship between engagements |
| Employment status | Worker or employee with statutory rights | May be worker or genuinely self-employed depending on facts |
| Holiday pay | Accrues holiday pay on all hours worked | Depends on status; may accrue if classified as worker |
| Regularity | Can involve regular or irregular hours | Typically irregular, ad-hoc engagements |
What Is a Zero-Hours Contract?
A contract where the employer is not obliged to provide a minimum number of hours and the worker is not obliged to accept any hours offered.
Key Features
- • No guaranteed minimum hours of work
- • Exclusivity clauses are banned under UK law
- • Worker retains statutory rights including holiday pay
- • Employer offers work as and when needed
Best For
- • Businesses with highly variable demand
- • Workers wanting maximum flexibility
- • Supplementary staffing for peak periods
What Is a Casual Contract?
An informal arrangement where work is offered and accepted on an ad-hoc basis with no ongoing obligation on either side between engagements.
Key Features
- • No ongoing employment relationship between assignments
- • Each engagement is a separate contract
- • No obligation to offer or accept future work
- • Often used for event-based or seasonal work
Best For
- • One-off events or occasional cover
- • Workers who want complete freedom to decline work
- • Businesses needing a pool of available workers
When to Use a Zero-Hours Contract
Use a zero-hours contract when you have an ongoing relationship with someone but cannot guarantee hours. This is common in hospitality, retail, and care sectors where demand fluctuates.
When to Use a Casual Contract
Use a casual arrangement only for genuinely ad-hoc, irregular work where there is no expectation of ongoing engagement. Be cautious, as regular patterns can create an implied employment relationship.
Which Does Your Business Need?
If you regularly call on the same individuals, a zero-hours contract provides clearer legal footing. True casual arrangements suit one-off or sporadic needs. In either case, ensure you comply with holiday pay and minimum wage obligations.
FAQ
Can I require a zero-hours worker to be available exclusively for me?
No. Under section 27A of the Employment Rights Act 1996, exclusivity clauses in zero-hours contracts are unenforceable. Workers are free to work for other employers.
Do casual workers get holiday pay?
If classified as workers under UK law, yes. They accrue 5.6 weeks of statutory holiday per year, typically calculated as 12.07% of hours worked and often paid as rolled-up holiday pay.
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