The gig economy, specifically zero-hours contracts, have seen a lot of news coverage recently and most of it is negative.

Despite this, there has been a 13% rise in the use of zero-hours contracts in the UK in the last year.

According to figures released by the Office for National Statistics:

  • 8% of those in employment (905,000 people) are on zero-hours contracts
  • 32% of those employees want additional hours
  • 9% want a replacement job with longer hours

If there is one thing that can be taken away from this, as well as from all of the negative press, it is a general feeling of uncertainty and job insecurity mixed with a lack of trust towards employers who offer this type of contract.

Research by Glassdoor found that one in four of those offered zero-hours contracts turned them down and 44% of those people did so because of lack of trust.

So what’s the answer?

One hour contracts seem to be a new happy medium between zero-hours contracts and full-time employment for Santander.

Their on-call CSA employees who assist when branch staff need cover, need to have flexibility in their hours and their location.

To keep themselves separated from the negativity and stigma around zero-hours, but also to appeal to a workforce that increasingly seeks flexibility as well as security, they have opted to create the one hour contract.

The bank confirms that they have support from unions and that these contracts are ideal for students and maternity leavers.

What is a one hour contract and how does it differ to zero-hours?

  • Staff have to work a minimum of 12 hours a year
  • They have full employment rights

The gig economy is expanding and PwC predicts in the UK the gig economy will be worth £2billion by 2020.

It seems logical then to try and find suitable alternatives for employees to ensure their security and their trust. Thanks to some landmark cases such as Aslam, Farrar and Others v Uber, workers are becoming increasingly more confident in challenging their employers when they have not been treated fairly.

In conclusion, if you want to use a gig economy model for your business, you can find better and safer ways to do it than by falling back on zero-hours contracts. Santander found a solution that suited their needs whilst offering the security and autonomy their workers need.

To find out how you could bespoke your contracts of employment to suit your business needs and your business growth goals, contact us on 01256 328 428.