Zero Hour Contracts in the Hospitality Industry Essay

Zero Hour Contracts in the Hospitality Industry - Essay Example Observably, this sort of contract is argued to possess both negatives and positives influencing the commitment levels of both the employer and the employee and hence, affecting organisational efficiency at large. However, such contract accompanies with aspects including lack of job and financial security for the employees and lack of availability of skilled and loyal staff for the company. With due considerations to all these aspects, certain recommendations have been made to Hyatt Regency London when applying the policy of zero-hour contract. The Policy Background The policy depicted in this briefing is based on the concept of ‘Zero-Hour’ Contracts. As the name itself suggests, ‘Zero-Hour’ Contracts is a type of employment contract that is usually used in the UK in compliance with the Employment Rights Act of 1996 of the country. Basically, this contract is drawn in a written format, where it contains a statement regarding the terms and conditions of employ ment built amid an employer and an employee. Under such contracts, an employer does not guarantee an employee to provide work and pays for the work that is actually being done. In precise, the contract provides right to the employers that enables them to take a call on staffs when they are not needed and does not pay them for that duration, which further makes the entire process a time-efficient one. It has recently been one of the major issues and a component of extensive debate worldwide. It can be considered as a rising issue in various sectors of business including the hospitality industry owing to the fact that it regarded as an approach, which employers find attractive as it is quite a cost saving measure. In the hospitality sector, companies are therefore observed to be recruiting staff members on the basis of ‘Zero-Hour’ Contracts. However, it is deemed that the aspect of ‘Zero-Hour ’ Contracts is not quite a profitable prospect for the employees as it is for the employers in the UK hotel industry, as they are only entitled for salary nominal payment for the period they actually worked for the business with no financial security. Moreover, the concept of ‘Zero-Hour ’ Contracts is also seem to be violating some of the key employment rights that further make it a serious issue altogether (Grice, 2013; ACAS, 2012). Since, the concept has certain major advantages and loopholes at the same time; its extensive implementation has become quite uncertain and a major point of discussion, which further presents it as a major issue in the modern day context. As addressed above, the policy of ‘Zero-Hour’ Contracts has major impacts on both the employer and the employees as the major stakeholders of the policy issue. Owing to this contract, employers are entitled to be benefited with greater flexibility to meet the demands of the customers. It also reduces cost of the company as very little has to be spent on emplo yee recruitment and training. Furthermore, as per the contract, employees will be able to get flexible hours to maintain a better work-life balance. These aspects encourage many to support the concept. While the opposers to the policy issue argue upon certain facts including violations of employment rights and salary payment approach under such contracts (Grice, 2013; ACAS, 2012; Barnett & Scrope, 2008). Assessment of the Debate to Date The concept of Zero-Hour ’ Contracts has become an importance topic of debate all over the world, especially in the hospitality