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Beginner July 2005

Employing Someone - Possible Zero Hour Contract & Costs

Crumbalina, 26 August, 2011 at 14:25 Posted on Off Topic Posts 0 1
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I don't know if anyone can help me, but if they can it would be a great help.

I set up my own business in Feb 2010 and I'm getting to the stage where I need to (possibly) employ someone, but on a very limited part time basis and I'm trying to work out the most cost-effective way of doing this.

The lady who I want to use is currently off after having a baby and is looking to get back to work, but on a part time basis, which is all I would need.

I've thought about her setting up as self employed but my accountant seems to think this wouldn't be a good idea, as she would just technically be working for me, therefore HMRC could look upon this unfavourably and would end up in me paying her NICs.

Does anyone know what kind of costs I could be looking if I were to employ her?

I think the Zero Hour Contract sounds the best to me, but don't know what kind of costs as an employer I would face. I would only be paying for work done, and if the work isn't there that week, then there would be no pay. Is this allowed? She is very understanding and says that she wouldn't be expected to be paid if she didn't have any work, but can this be done (legally)?

If anyone can help or can point me in the right direction it would be most helpful.

Thanks
crumbalina

1 replies

Latest activity by *Nursey*, 27 August, 2011 at 11:28
  • Sparkles82
    Beginner April 2013
    Sparkles82 ·
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    Hi Crumbalina,

    I know that in recent years zero hour contracts have become frowned upon, but are still perfectly legal and within all employment regulations. Could you perhaps offer a low contract instead - 6 hours for example, but ensure the contract says that work over this, up to an upper limit of maybe 40 hours is still paid at basic rate.

    You would have to pay your employers NI (from memory, it is approx 13.6% but cant remember exactly - will try and remember to check on Tuesday for you) but this of course only payable once they reach the threshold (I believe this is currently approx £165 but again, thats from memory - I will check) Other than that, you need to submit her tax and employees NI and that is all.

    Remember, you must provide her with a contract and a payslip each week/month.

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  • *Nursey*
    Beginner May 2012
    *Nursey* ·
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    I know that the nurses working for the hospital bank (to cover shifts etc) are on a 0 hours contract, so it is routinely done...

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