Zero-Hour Contract - GCSE Business Definition

A zero-hour contract is an employment agreement where the employer is not obliged to provide any minimum number of working hours, and the employee is not required to accept any work offered. This type of contract offers flexibility for both parties, allowing employers to manage variable workloads and enabling employees to choose assignments that fit their schedules. However, it may create income instability for workers due to the lack of guaranteed hours.

Zero-hour contracts are often used in industries like retail, hospitality, and event management, where demand for labour can fluctuate. Understanding these contracts is important for GCSE Business students because they highlight the balance between flexibility and job security in the workforce.