Employers trying to get round law with ‘if and when’ arrangements, report says

Zero hour contracts ‘not extensive’ in Ireland, suggests University of Limerick study

Over recent years there has been a lot of focus internationally on workers employed on zero-hour contracts, who have to make themselves available for work without a guarantee of getting any from an employer.

A new report commissioned by the Government from the University of Limerick has suggested that attention in Ireland should be drawn to a different phenomenon known as if-and-when employment.

The Limerick team argue that, given the protections set out in employment legislation here, classic zero-hour contracts are “not extensive” in Ireland. However, the report, which is to go to Cabinet tomorrow, suggests that some employers may be favouring if-and-when arrangements to get round these safeguards.

Under existing legislation, workers must receive pay for at least 15 hours, or 25 per cent of the hours for which they have to make themselves available to an employer. The legislation was intended to create a floor in the labour market for workers who are contractually required to make themselves available, as they are with zero-hour contracts.

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However, workers with if-and-when arrangements do not have a contractual requirement to make themselves available. In such cases, an employee works if available and an employer offers work if the company has it to offer. There is no legal obligation either to provide work or to perform work.

Lack of clarity

The report says there is a lack of clarity about the employment status of individuals who work exclusively if-and-when hours. “As there is no mutuality of obligation between an employer and individual with ‘if-and-when’ hours (ie, there is no obligation to provide work or perform work), there is a strong likelihood that individuals in this situation are not defined as employees with a contract of service. Consequently, questions arise on the extent to which they are covered by employment legislation,” it states

The report adds that if-and-when working arrangements can arise in different circumstances. In some cases, all hours offered to workers are solely on an if-and-when basis. In others, there may be a situation whereby a worker has some guaranteed hours, with the remainder offered on an if-and-when footing.

The report says that, given the variety of contractual arrangements in place, there is a “significant challenge” in collating accurate data on how many people are working on an if-and-when basis.

However, it gives some examples. It maintains that in relation to the community-care sector – the provision of homecare for older people or services for those with an intellectual disability – “it is estimated that people on ‘if-and-when” contracts constitute approximately 10 per cent of the workforce”.

The report says that “the key factors driving the use of ‘if-and-when’ contracts are increasing levels of work during non-standard hours, a requirement for flexibility in demand-led services and the absence of accessible, affordable childcare”.

It adds that, for employers, the main advantage of if-and-when working arrangements is flexibility. It says such arrangements allow employers to increase or decrease staff numbers when needed, while costs are also reduced . Individuals on if-and-when hours “may not build up sufficient service to attain benefits such as sick pay”.

Low-hour arrangements

The report also says that employers’ organisations contend that if-and-when and low-hour working arrangements suit some employees, such as students, older people and women with caring responsibilities . It says some employers maintain that they have difficulties in securing employees who want more working hours.

On the other hand, the report says that trade unions and non-governmental organisations argue that if-and-when arrangements can have many negative implications for workers. These include: unpredictable working hours ; unstable income; difficulties in accessing credit; a lack of employee input into the scheduling of work hours; employment contracts that do not reflect the reality of hours worked; insufficient notice when called to work; being sent home during a shift; a belief among employees that they will be penalised by employers for not accepting work; poorer terms and conditions in some cases; and difficulty in accessing social welfare benefits.

The report says that low-hour working arises in various employment contracts. “An individual working a low number of hours may have either a regular part-time contract with fixed hours, or a contract with ‘if-and-when’ hours only, or a hybrid arrangement whereby employees have some guaranteed hours and any additional hours of work are offered to them on an ‘if-and-when’ basis,” it states.

The report says there is no commonly used national or international definition of low-hours working. "Central Statistics Office data show that 2 per cent of employees regularly work one to eight hours a week, 6 per cent work nine to 18 hours a week and 24 per cent work 19 to 35 hours a week. "

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent