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Zero Hours Contracts, And Benefits

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boxtops | 10:04 Sat 09th Mar 2013 | Personal Finance
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Does anyone know, please, if a person who is on a zero hours work contract, but hasn't actually been offered any work for a couple of weeks, is entitled to claim any unemployment benefit for the time they are not offered work by their employer?

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I don't think a claim can be made retrospectively. If I was on such a contract I think I'd apply for JSA. If they approve it I'd claim it but notify them of any earnings (which leads to a reduction in JSA), and once more than 3 days is worked in a week I's have to sign off JSA. Then if work dries up again there is a need to re-register for JSA there is a rapid reclaim system. But you'd need to show that you are looking for work.
Its an extremely good question and one that I am not 100% sure of the answer.

I suspect that the answer is that JSA cannot be claimed, because an employee with a zero-hours contract does have an employment contract but it just happens to be one where the hours/earnings are not guaranteed. Ergo, I have 'a job' therefore I cannot be 'job-seeking'.

But that doesn't been that the person cannot claim other benefits (Housing, tax credits etc,) according to circumstances.

I wouldn't entertain considering such a contract if I was totally dependent on the income - they are really only suitable for those such as students who seek flexible work in exchange for a little extra. I know that is not the way they are being used in the retail sector right now.
I agree buildersmate. My answer would be more appropriate someone who had signed up with an agency but work was not always available. For example I am a supply teacher but I successfully claimed JSA over the Christmas period when schools were shut.
F30: Zero hours contracts aren't the same as being registered with an agency, where work occurs from time-to-time, but on a casual basis - a few days here, then no work. With these, I reckon one is either in-contract or out of contract. I'm pretty sure your supply teaching work is similar - you probably get paid for the days you do at an enhanced daily rate for the same teaching grade that equates to the contractual days worked by a full-time teacher over 12 months - so you too, are either on or off contract.
>I'm pretty sure your supply teaching work is similar - you probably get paid for the days you do at an enhanced daily rate for the same teaching grade that equates to the contractual days worked by a full-time teacher over 12 months ..
I wish, buildersmate, I wish. That used to be the case- supply rates used to be based on an annual teacher's salary divided by 195 school days so could be £110- £150 (depending on experience) per day worked. But schools are driving down the cost and agencies are competing to win the business; consequently rates are lower now than they were 5 years ago, and sometimes you are only paid as a 'cover supervisor' at maybe £60-80 a day. Still, for quality of life, it's better for me than a permanent role as I can ignore all the planning, marking, training, parents' evenings, after school clubs, detentions, reports, bus duties, pressure to make silk purses out of sows' ears, preparing for OFSTED, putting up displays, etc

But, returning to the question, I'm sure you are right about zero hours contracts. I think they are suited much more to students
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Thanks to you all for your suggestions. The situation is that in the haulage industry, there is or there isn't work - so a driver is contracted to a company (who deducts his tax and NI as his employer) but can't always offer him work. When there's work, it's good, but there can be at least a couple of weeks at a time when there's nothing on offer for his class of vehicle. It's far from ideal and (short of finding another job) I wondered what the alternatives might be regarding benefits when there is no work on offer.
OK, I've had another look at this and I'm going to have to amend my answer. Zero-hours contracts don't work the way I thought they did (they are a relatively new innovation). They do not create a contract of employment and those involved are 'workers' not 'employees'.
The evidence for this is in this guidance information which I think to be kosher and only 6 weeks old.
http://www.freelanceadvisor.co.uk/legal-advice/what-are-zero-hours-contracts/
So zero-hours workers do not have continuity of employment and hence I don't see any reason why they can't claim contribution-based JSA - provided enough NIs have been paid.

By the way, there is no mutuality of obligation in a true zero hours contract - which means that a worker who has one is under no obligation to accept
any 'hours' offered by the employer. I'll bet many employers don't appreciate that.
Thanks ladz - I am just appalled at the innovations in the work place.

and they say Slave Labour only occurs in Africa

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