Zero Hours Contract Template (UK) – Create a Legally Compliant Contract in Minutes

A comprehensive Zero Hours Contract should clearly define:

• Worker and employer details - Full names, addresses, and company registration details
• Job title and duties - Clear description of the role and responsibilities
• No guaranteed hours clause - Explicit statement that no minimum hours are guaranteed
• Right to refuse work - Worker's right to decline offered shifts without penalty
• Pay rate and method - Hourly rate (must meet National Minimum/Living Wage), payment frequency, and method
• Holiday entitlement - Statutory 5.6 weeks (28 days for full-time equivalent) holiday pay calculation
• Working time provisions - Rest breaks, weekly rest periods, and maximum working time opt-out if applicable
• Notice periods - Notice required from both parties to end the arrangement
• Sick pay entitlement - Statutory Sick Pay (SSP) eligibility and any enhanced provisions
• Pension auto-enrolment - Worker's rights regarding workplace pension scheme
• Exclusivity clause prohibition - Confirmation that worker can work for other employers (required by law)
• Grievance and disciplinary procedures - Process for raising concerns and handling performance issues

Our contract is crafted by legal professionals and includes all essential clauses for UK compliance.

Legal and Financial Risks:

• Employment tribunal claims: Without clear terms, workers may successfully claim they're employees entitled to full employment rights including unfair dismissal protection from day one
• Holiday pay disputes: Ambiguous arrangements lead to expensive backdated holiday pay claims - recent case law has awarded up to 8 years of accrued holiday
• Minimum wage violations: Unclear payment terms risk accidental underpayment and HMRC penalties of up to 200% of arrears
• No exclusivity protection: Without a written contract, you cannot prevent workers from immediately competing with your business
• Tax and National Insurance issues: HMRC may reclassify workers as employees, resulting in backdated PAYE and NIC bills plus penalties
• Intellectual property disputes: Work created by workers without written IP assignment clauses may belong to the worker, not your business

Common Zero Hours Disputes:

Holiday pay calculation errors, misclassification of employment status, failure to pay for training time, unlawful deductions, discrimination claims for shift allocation, and disputes over notice periods. These claims cost UK businesses millions annually.

A £10 contract prevents £10,000+ tribunal claims and penalties.

Comprehensive Zero Hours Protection:

• ✓ Complete worker and employer details section
• ✓ Job title, duties, and reporting structure
• ✓ Contract start date and probation period option
• ✓ Clear "no guaranteed hours" statement
• ✓ Right to refuse work clause (legally required)
• ✓ No exclusivity clause (legally required since 2015)
• ✓ Pay rate and payment frequency terms
• ✓ Statutory holiday entitlement calculation
• ✓ Holiday pay accrual method (12.07% for zero hours)
• ✓ Working time and rest break provisions
• ✓ Statutory Sick Pay (SSP) entitlement
• ✓ Notice period requirements (both parties)
• ✓ Workplace pension auto-enrolment clause
• ✓ Confidentiality obligations
• ✓ Data protection compliance (GDPR)
• ✓ Intellectual property assignment
• ✓ Health and safety responsibilities
• ✓ Equality and non-discrimination clause
• ✓ Grievance procedure reference
• ✓ Disciplinary procedure reference
• ✓ Termination provisions
• ✓ ACAS Early Conciliation clause

Professional, legally compliant, and ready to use immediately.

Don't Make These Critical Errors:

• Including exclusivity clauses: It's illegal to prevent zero hours workers from working elsewhere - doing so triggers automatic £2,500+ penalties per worker.
• No right to refuse work: Workers must be able to decline shifts without facing detriment - forcing acceptance makes them employees with full rights.
• Wrong holiday pay calculation: Zero hours workers get 12.07% of hours worked as holiday pay, not the 5.6 weeks method used for regular employees.
• Calling them "self-employed": Zero hours workers are workers (not employees, not self-employed) - misclassification triggers tax penalties and backdated rights.
• No pension auto-enrolment: Zero hours workers earning over £10,000/year must be auto-enrolled in workplace pension - failure triggers Pensions Regulator fines.
• Unpaid training time: If training is mandatory, you must pay at least National Minimum Wage for all training hours.
• Minimum shift requirements: Requiring minimum hours (e.g., "must work at least 16 hours") contradicts zero hours status and creates employment rights.
• No written terms within 1 day: Since 6 April 2020, written terms must be provided on or before first day of work - not within 2 months.
• Ignoring irregular hours rules: Since April 2024, irregular hours workers (including zero hours) have new rights to reasonable notice of shifts and compensation for cancelled shifts.
• No sick pay provisions: Zero hours workers qualify for SSP after 3 days sickness - failing to pay triggers claims and penalties.

Our contract prevents all these costly mistakes with legally compliant, business-professional terms.