A CIPD report on zero-hours contracts may have been intended for employers, but it offers insights for freelancers. Here are key points for freelancers to know about zero-hours contracts.
1. Know Your Rights:
- Minimum Wage: You’re entitled to at least the National Minimum Wage for every hour worked.
- Paid Holiday: Accrues even on irregular hours.
- Rest Breaks: Entitled to these during work days.
- Discrimination Protection: Same as any worker.
- No Exclusivity: Can’t be stopped from seeking other work.
2. Contract Negotiation is Key:
- Don’t be pressured: Take time to understand the terms.
- Clarify expectations: Hours, pay, notice periods, etc.
- Negotiate rate: Reflecting skills, not just minimum wage.
- Written terms: Verbal agreements are risky.
3. Record Keeping is Essential:
- Track hours meticulously: This proves what you’re owed.
- Pay stubs/statements: Keep them organised.
- Expense records: If relevant to your work.
4. Tax & Financial Preparedness:
- Self-assessment likely: Budget for tax, it’s not withheld.
- Income fluctuations: Have savings to cover lean periods.
- Expense deductions: Know what’s allowable to offset tax.
5. Diversification & Backup Plans:
- Don’t rely solely on one contract: Seek multiple income streams.
- Network: Build relationships for potential work leads.
- Upskill: Make yourself more marketable for varied work and clients.
6. Support & Community:
- Freelancer unions/associations: Offer advice, templates, etc.
- Online forums: Connect with others in similar situations.
What else should you consider?
- Zero-hours ≠ freelancing: You’re a worker, not a business owner.
- Benefits: Usually minimal (e.g., no sick pay, pension).
- Long-term security: Not guaranteed, so plan accordingly.
Read the CIPD report here.
Disclaimer: This is not legal advice. If unsure, consult a professional familiar with employment law in your jurisdiction.