Page 2 - ORC Employment (Miscellaneous Provisions) Act 2018 Guidance Note (002)

Changes to Organisation of Working Time Act 1997

Section 18 is amended to prohibit zero hour contracts except where;

• the work is of a casual nature;

• the work is done in emergency circumstances; or

• the work is short-term relief work to cover routine absences for the employer.

The new Act introduces a minimum payment entitlement, in certain circumstances, where an
employee is called into work and does not receive the expected hours of work. The already existing
method of payment (at least 25% of the contract hours or 15 hours) continues to apply overall. The
minimum payment is payable on each occasion this happens and will be 3 times the national
minimum wage rate or rate of pay as set out in an Employment Regulation Order (if one exists for
that sector and for as long as it remains in force).

Zero hour contracts should be distinguished from ‘if and when’ arrangements where there is only an
expectation (rather than an obligation) to be available for work. These provisions will also not apply
to employees who are required to make themselves available on an ‘on-call’ basis and are
compensated through an on-call premium.

It will remain possible to employ workers on a seasonal basis and the legislation states that employers
are not required to offer hours of work in a week where the employee was not expected to work or
where the employer’s profession, occupation or trade is not being carried out.

Banded Hours Provisions. The new Act introduces a new right for employees whose contract of
employment does not reflect the reality of the hours they habitually work. If this is the case,
employees are entitled to be placed in a band of hours that more accurately reflects the hours they
have worked over a 12-month reference period. The bands of hours set out in the Act are:

Band From To

A 3 hours or more Less than 6 hours
B 6 hours or more Less than 11 hours

C 11 hours or more Less than 16 hours
D 16 hours or more Less than 21 hours

E 21 hours or more Less than 26 hours
F 26 hours or more Less than 31 hours

G 31 hours or more Less than 36 hours
H 36 hours or more

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