If you're on a zero hours contract and facing redundancy, you might be wondering where you stand. Your rights depend on whether you're classed as an employee or a worker, and how long you've been with the company.
Many people on zero hours contracts have fewer rights than they think. But that doesn't mean you have no rights at all.
Employee or worker?
This distinction matters more than you might think. Employees have the full range of employment rights, including redundancy pay after two years' service. Workers have some basic rights but not others.
Most people on zero hours contracts are classed as workers rather than employees. The difference comes down to things like whether you have to accept work when it's offered, whether you can send someone else in your place, and how much control the employer has over how you do the job.
If your contract says you don't have to accept shifts and the employer doesn't have to offer them, you're probably a worker. If there's a genuine obligation on both sides, even if the hours vary, you might be an employee.
The difference isn't always clear. Zero hours staff who've worked regular patterns for years have sometimes successfully argued they're employees. But this usually means going to an employment tribunal.
Redundancy pay and continuous service
Even if you are an employee on a zero hours contract, you need two years' continuous service to qualify for statutory redundancy pay. This is where it gets tricky.
According to the Employment Rights Act 1996, any week in which you're employed under a contract counts towards continuous service, even if you don't actually work. Gaps of less than a week generally don't break continuity. Longer gaps might break it unless there are exceptions like sickness or mutual agreements.
Regular work patterns can help establish continuous service, even with some gaps. Each week where you do some work counts towards your length of service. Weeks where you don't work but are away sick or on holiday can count too.
Some employers try to break continuity deliberately by leaving gaps in work patterns. If you can show this was done to avoid giving you employment rights, a tribunal might decide you have continuous service anyway.
What rights do zero hours workers have?
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Try our Redundancy Pay Calculator free, here on this site →Even if you don't qualify for redundancy pay, you still have some rights as a worker:
- National minimum wage for hours worked
- Paid annual leave
- Protection from discrimination
- Protection for whistleblowing
- The right to request more predictable hours after 26 weeks
You should also get any notice period stated in your contract. If nothing's specified, you're entitled to reasonable notice based on how long you've worked there and your normal working pattern.
Workers can't claim unfair dismissal, but if you're dismissed for discriminatory reasons or for exercising your legal rights, you might have a claim.
When redundancy happens
Employers making redundancies should still follow a fair process. This means consulting with affected staff, using fair selection criteria, and considering alternatives.
For zero hours workers, redundancy might look different. Instead of formal redundancy, employers often just stop offering shifts. This can make it harder to challenge, but if you can show you had regular work that's now stopped for economic reasons, this could amount to redundancy.
In some instances, zero hours workers have managed to claim redundancy pay by proving they were actually employees with regular patterns of work. But tribunals require substantial evidence, can be lengthy, and have no guaranteed outcomes.
Larger organisations making 20 or more redundancies must follow collective consultation procedures. This includes a 30-day consultation period for 20-99 redundancies, or 45 days for 100 or more. These procedures should include zero hours staff who are employees.
Practical steps to protect yourself
Keep detailed records of your working patterns, including dates and hours worked. Save any emails or texts about shifts, especially those showing regular patterns or mutual obligations. This evidence could prove crucial if you need to establish your employment status or continuous service.
Check your contract carefully. Some zero hours contracts include terms that might give you more rights than the legal minimum.
Get advice as soon as job insecurity appears. ACAS offers free, impartial guidance on employment rights. Citizens Advice can also help you understand your position. Trade unions or professional representatives can provide additional support if you're a member.
Look into benefit eligibility early. Universal Credit rules are complex for people with variable hours. Check current eligibility on GOV.UK or speak to an advice bureau for specific guidance on claiming benefits when facing job loss.
The law on zero hours contracts and employment status continues to develop through tribunal cases. What seemed straightforward a few years ago might be open to challenge now, particularly if your actual working relationship looks nothing like what's written in your contract.
Being realistic, most zero hours workers won't qualify for redundancy pay. The combination of being classed as workers rather than employees, and the difficulty proving continuous service, puts redundancy pay out of reach for many.
But unfair treatment shouldn't be accepted without question. If you've worked regular hours for years, always been available when needed, and worked like any other employee, you might have stronger rights than your contract suggests. Getting proper advice early makes a real difference.
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