Zero hours contracts and the gig economy: what nobody tells you before you sign

"Flexible hours, be your own boss, work when you want." That is what the listing said. What it did not say was that you would spend every Sunday evening refreshing an app, hoping for enough shifts to cover rent. Welcome to the reality of zero hours contracts in the UK.

Roughly 1.1 million people in Britain are currently on zero hours contracts. Some of them genuinely love the flexibility. A lot more feel trapped. The difference usually comes down to one thing: whether you understood what you were signing up for before you signed it.

What a zero hours contract actually means

A zero hours contract is an agreement where your employer is not obligated to give you any minimum number of working hours. You are technically not obligated to accept any hours they offer either, but in practice, turning down shifts can mean you stop getting offered them entirely.

What you get. Holiday pay (calculated as 12.07% of hours worked), protection from discrimination, the national minimum wage for every hour worked, and the right to work for other employers.

What you do not get. Guaranteed income. Sick pay (unless you qualify for Statutory Sick Pay after earning above the lower earnings limit). Redundancy pay. Predictability. The ability to plan your life more than a week ahead.

The exclusivity clause ban. Since 2015, employers cannot force you to work exclusively for them on a zero hours contract. But enforcement is weak. Many workers do not know this right exists, and some employers use informal pressure to discourage working elsewhere.

The numbers nobody puts on the job listing

Let us compare two scenarios for someone living in Manchester, 28 years old, no dependants.

Scenario A: Zero hours contract at a retail chain

You work an average of 25 hours per week, but it fluctuates between 12 and 35. Your hourly rate is £11.44 (the 2026 national minimum wage for over 21s). In a good month, you take home around £1,200 after tax. In a bad month, it is £700. Your annual income lands somewhere around £12,500.

You cannot get a standard rental agreement because most landlords require proof of regular income. You end up in a house share with a rolling contract at a higher rent. You cannot get a phone contract, a car on finance, or a mortgage. Even credit cards are harder to get because your income is unpredictable.

Scenario B: Fixed hours contract at a supermarket

You work 35 hours per week, every week. Same hourly rate. Your monthly take home is around £1,500, every single month. Annual income: roughly £17,500. You can sign a tenancy agreement, get a phone contract, plan a holiday.

The difference in annual income is about £5,000. But the real difference is in what that predictability lets you do with your life.

When zero hours contracts actually make sense

Not every zero hours arrangement is a trap. For some people, they genuinely work:

Students. If you are studying full time and need income around lectures and exam periods, a zero hours contract gives you the ability to scale work up during holidays and down during term time. The key is that your primary income source is your student loan, not the job.

Parents with school age children. If your partner has a stable full time income and you want to work during school hours only, zero hours can fit around school runs and holidays. But only if you are not relying on the income to cover essential bills.

Semi retired workers. If you have a pension and want to stay active without committing to full time work, zero hours gives you the option to pick up shifts when you feel like it.

Portfolio workers. If you are building a freelance career or running a side business, a zero hours contract can provide some base income while you grow your own thing.

The common thread: zero hours works when it is supplementary income, not your primary source of money.

The gig economy is not what it was in 2019

The gig economy in the UK has changed significantly since the Supreme Court ruled in February 2021 that Uber drivers were workers, not self employed contractors. That ruling set off a chain reaction.

Deliveroo. Lost a similar case at the Supreme Court in 2023 but continues to classify riders as self employed. The practical difference is that riders now receive some benefits through Deliveroo's "fee per delivery" model changes.

Holiday pay. Most gig platforms now offer holiday pay accrual, even if the mechanism is not always transparent.

The Employment Rights Bill 2024. This legislation, expected to be fully implemented by late 2026, introduces a right to a guaranteed hours contract after a qualifying period. If you regularly work a certain number of hours over a 12 week reference period, your employer must offer you a contract reflecting those hours. This is a massive change. It means zero hours contracts cannot be used as a permanent arrangement for workers who are effectively working regular patterns.

What to look for before you accept

If you are considering a zero hours contract, ask these questions before you sign:

How are shifts allocated? Is it first come first served on an app? Does a manager choose favourites? Is there a rota you can rely on? The allocation method determines how much control you actually have.

What happens if you turn down shifts? The contract may say you are free to decline, but some employers informally penalise workers who say no. Ask current or former staff, not the manager.

What is the average weekly hours for someone in this role? If the employer cannot or will not answer this, that tells you something.

Is there a path to a fixed hours contract? Some employers use zero hours as a probation period before offering guaranteed hours. Others use them indefinitely. Know which type you are dealing with.

Can you work elsewhere? You have the legal right to, but check that the practical reality matches. Some employers schedule shifts at the last minute, making it impossible to commit to a second job.

The CV gap problem

One thing rarely discussed is how zero hours contracts appear on your CV. You worked at a company for 18 months, but your actual experience ranges from 15 hours a week to 35. How do you represent that?

Be honest about the hours. If asked, describe your role in terms of responsibilities, not hours. "Managed stock replenishment and customer queries across a 2,000 sq ft retail floor" sounds better than "worked 12 to 30 hours a week depending on what they gave me."

Focus on skills gained. Flexibility, time management, dealing with unpredictability. These are real skills that employers in more stable roles value.

Do not apologise for it. Many people take zero hours contracts because that is what is available. There is no shame in it. Frame it as a choice to stay active in the workforce while looking for the right permanent role.

What comes next

The Employment Rights Bill will reshape zero hours contracts over the next year. But legislation takes time to enforce, and employers will find creative ways to comply with the letter of the law while avoiding its spirit.

Your best protection is information. Know your rights. Know the real numbers. And know when "flexibility" is a genuine benefit versus a polite word for "we do not want to commit to you."

If you are building a CV for permanent roles after a period of gig work or zero hours employment, focus on the value you delivered, not the structure of the contract. Your next employer cares about what you can do, not how many hours per week your last one chose to give you.