Zero-hour contracts are now common-place in a variety of industries across the UK - from hospitality and retail to care work and seasonal employment. They can offer flexibility to both employers and workers, but they also come with some unique challenges and potential pitfalls.

If you live and work in Wales, it’s important to understand your rights, what your employer can and cannot do, and how to protect yourself from unfair treatment.

Below, we’ll explain what zero-hour contracts are, your legal rights as an employee, and practical steps to take if you feel your rights have been breached.

What is a zero-hour contract?

A zero-hour contract is a type of employment agreement where there is no guaranteed minimum number of working hours. Instead, the employer offers work as and when it is available, and the worker can choose whether to accept it.

Under UK law, the term “zero-hour contract” is not a legal category in itself - it is simply a casual working arrangement. The important point is that your rights will largely depend on whether you are legally classified as an employee or a worker under the terms of your contract.

Employees have the full range of employment rights, including unfair dismissal protection after two years of continuous service, redundancy pay, and full statutory rights.

Workers have more limited rights but are still entitled to key legal protections such as holiday pay, the National Minimum Wage, and rest breaks.

Are zero-hour contracts legal in Wales?

Yes - zero-hour contracts are legal in Wales and across the UK. However, there are strict rules to prevent abuse. For example, exclusivity clauses - where an employer tries to stop you from working elsewhere - are unlawful. This means that if you are on a zero-hour contract, your employer cannot legally prevent you from taking on additional work with another company to supplement your income.

Your key legal rights on a zero-hour contract

Even if you work irregular hours, you still have important rights under UK law.

These include:

1. The right to the National Minimum Wage

You must be paid at least the National Minimum Wage (or National Living Wage if you are over 21). Your hourly rate should be calculated based on your actual hours worked.

2. Paid annual leave

You are entitled to 5.6 weeks’ paid holiday per year (pro-rated based on the hours you work). Holiday pay is usually calculated using your average earnings over the previous 52 weeks in which you worked.

3. Protection from discrimination

All workers are protected under the Equality Act 2010, meaning you cannot be treated unfairly because of protected characteristics such as age, gender, race, disability, or religion.

4. Rest breaks

You have the right to rest breaks under the Working Time Regulations - typically a 20-minute break if you work more than six hours in a day, plus daily and weekly rest periods.

5. The right to turn down work

Your employer cannot force you to accept work offered under a zero-hour arrangement. That’s the nature of the contract - flexibility on both sides.

Potential problems with zero-hour contracts

While zero-hour contracts can be beneficial for students, retirees, and those seeking flexibility, they can also create financial uncertainty and instability.

Some common issues include:

• Unpredictable income - making budgeting and financial planning difficult.
• Pressure to accept work - despite the legal right to refuse.
• Lack of guaranteed hours - affecting eligibility for certain loans or rental agreements.
• Misclassification - being treated as a ‘worker’ when your role meets the criteria for an ‘employee’ (and therefore you should have more rights).

Read: Common questions about contract of employment

How to protect your rights on a zero-hour contract

If you are on a zero-hour contract in Wales, here are some practical tips to safeguard your position:

Keep accurate records

Track your hours, shifts, and any changes to your rota. This will help you challenge underpayment or incorrect holiday pay calculations.

Understand your employment status

Ask your employer to confirm whether you are classed as a worker or an employee. If you’ve been working regular shifts for a long period, you may have a case for employee status.

Know the law on exclusivity clauses

You cannot be forced to work only for one employer if you are on a zero-hour contract. If your employer attempts this, it is unlawful.

Challenge unfair treatment promptly

If you believe your rights are being breached - for example, if you are denied holiday pay or underpaid - raise the issue with your employer in writing. If it is not resolved, you may be able to take the matter to an employment tribunal.

Can you claim benefits on a zero-hour contract?

Yes - but eligibility depends on your income and circumstances. Because your hours may vary, your benefit entitlement (such as Universal Credit) may also change month-to-month. Keep detailed records of your earnings for accurate benefit assessments.

Read: What are employees entitled to in the workplace?

When to seek legal advice

If you are in a dispute with your employer over a zero-hour contract - particularly over issues such as unpaid wages, discrimination, or employment status - it’s important to seek professional legal advice.

As experienced employment law solicitors in Ebbw Vale, South Wales, we regularly help clients understand their rights, negotiate with employers, and, where necessary, represent them in employment tribunals.

Zero-hour contracts can provide valuable flexibility, but they also require you to be aware of your rights and proactive in protecting them. Whether you’re a student, a parent balancing childcare, or simply looking for extra work, knowing the legal framework in Wales and the wider UK ensures you can make informed decisions about your employment.

If you need legal advice about a zero-hour contract or believe your rights have been breached, don’t hesitate to reach out to our team of friendly and knowledgeable solicitors who are here to help.