Hospitality glossary · People and retention

Zero-hours contract

A zero-hours contract is an employment contract with no guaranteed minimum hours — the employer offers work as it comes up, and the worker is under no obligation to take it.

In practice

Zero-hours contract in a real operation.

Definitions are easy. What matters is how the thing behaves in a real operation, and where it tends to go wrong.

What it looks like in a UK hospitality business

They are lawful in the UK; exclusivity clauses inside them are not. Workers on them still accrue holiday and are still entitled to the National Minimum or National Living Wage for the hours they do work. In hospitality they are most defensible for events, genuine seasonal peaks, and student staff who want the flexibility themselves.

The mistake operators make

Making them the default for core team members. Unpredictable income is one of the most reliable predictors of a resignation, and the flexibility is almost always worth less to the business than the turnover it generates.

Questions

Zero-hours contract, answered.

Something here that doesn’t match what you’re seeing in your own business? That is usually worth a conversation rather than another article.

What does zero-hours contract mean in hospitality?

A zero-hours contract is an employment contract with no guaranteed minimum hours — the employer offers work as it comes up, and the worker is under no obligation to take it. They are lawful in the UK; exclusivity clauses inside them are not. Workers on them still accrue holiday and are still entitled to the National Minimum or National Living Wage for the hours they do work. In hospitality they are most defensible for events, genuine seasonal peaks, and student staff who want the flexibility themselves.

What do operators get wrong about zero-hours contract?

Making them the default for core team members. Unpredictable income is one of the most reliable predictors of a resignation, and the flexibility is almost always worth less to the business than the turnover it generates.

WHY Hospitality

Knowing the term is not the same as fixing the problem behind it.

Read the retention guide