What are zero-hours contracts, how many UK workers are on them and why do employers use them?
In just one year there were 110,000 more people on zero hour contracts, figures have revealed
A RECORD number of workers are now on zero hour contracts as controversy grows around the employee arrangement.
Big companies are often slammed for employing members of staff on these casual contracts giving staff no guarantee of their hours - but what are these contracts and what does zero-hours mean?
What is a zero-hour contract?
A zero-hour contract, also known as a casual contract, allows companies to employ staff without ever guaranteeing work.
Employees only work when they are needed and are often given little notice before shifts.
Their pay depends on how many hours they work.
Some zero-hours contracts require workers to take any shifts they are offered - no matter how late notice. Others are more flexible.
That's an increase of nearly 14 per cent, and 30 per cent higher than 2014.
In 2005, there were just 100,000 people on zero hours contracts (ZHCs).
But although the new figures are a record, they also reveal a sharp slowing in the rate of increase in the last six months of 2016.
Why do employers use zero-hour contracts?
Employers use zero-hour contracts as it allows them to take in staff as demand for their services fluctuates.
Sectors such as tourism and hospitality often use zero-hour contracts, as demand can change drastically on short notice.
Bosses argue staff like zero-hour contracts as it gives workers flexibility.
Some argue employers use zero-hour contracts to avoid paying fixed overheads and give them flexibility in the workforce.
Others say they are used as a way of avoiding workers' rights.
Why are zero-hour contracts controversial?
Some argue zero-hour contracts do not offer enough financial stability and security.
The ONS found employees on casual contracts work an average of 25 hours a week.
About one third want more hours - compared to just 10 per cent in other contracts.
Research suggests 16 per cent of zero-hours workers feel they don't get enough hours.
Workers on these contracts also don't have the same employment rights as those on traditional contracts.
Employers could take advantage of zero-hours workers by offering more work to favoured employees and fewer to those less favoured.