What is the name of a contract that does not guarantee any particular number of hours of work?

Study for the Edexcel A-Level Business Test. Dive into flashcards and multiple-choice questions, each with helpful explanations. Elevate your exam readiness today!

Multiple Choice

What is the name of a contract that does not guarantee any particular number of hours of work?

Explanation:
The key idea is contracts that govern how many hours a worker will be offered. A zero-hours contract is the one where no hours are guaranteed. The employer can call the worker in to work as and when needed, and the worker is paid only for the hours they actually work. This gives the business flexibility to match demand, but it means the worker’s income can be unpredictable. This contrasts with other contracts that imply a regular pattern of hours, like part-time or fixed-term arrangements. So, the name for a contract with no guaranteed hours is a zero-hours contract.

The key idea is contracts that govern how many hours a worker will be offered. A zero-hours contract is the one where no hours are guaranteed. The employer can call the worker in to work as and when needed, and the worker is paid only for the hours they actually work. This gives the business flexibility to match demand, but it means the worker’s income can be unpredictable. This contrasts with other contracts that imply a regular pattern of hours, like part-time or fixed-term arrangements. So, the name for a contract with no guaranteed hours is a zero-hours contract.

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