Question

Zero-hours vs minimum-hours contracts for my part-time café staff — what's the practical difference?

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Hello all, Oliver here — I run a small café as a limited company. I have several part-time staff working variable shifts, currently on zero-hours contracts. A friend suggested minimum-hours contracts (say 8 or 12 hours a week guaranteed) might be better for both the team and the business. What's the practical difference for payroll, pensions and employment rights? I want flexibility but also want to treat my people fairly. Keen to hear what other café owners use.

1 Answer

Great question, Oliver, and it is good that you are thinking about fairness as well as flexibility. With a zero-hours contract there is no obligation on you to offer work and no obligation on the employee to accept it, whereas a minimum-hours contract guarantees the stated hours (say 8 or 12 a week) every week, with any extra shifts offered and accepted by agreement. Note that exclusivity clauses in zero-hours contracts are banned in the UK, so you cannot stop staff working for anyone else. Both types accrue holiday pay at the statutory 12.07% of hours worked, which must be paid even for casual staff, and you must give a written statement of employment particulars from day one whatever the contract type. For payroll and pensions, both need PAYE registration and auto-enrolment assessment based on age and earnings, so the administration is broadly similar; the real practical difference is certainty. For a cafe with regular busy periods, minimum-hours contracts often win goodwill and cut turnover, so it is worth modelling the fixed cost with your accountant.

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