Zero-Hour Contract

A type of employment agreement where an employer is not obligated to provide minimum working hours, and employees work on an on-call basis.
HR teams manage zero-hour contracts to ensure flexibility while maintaining compliance with labor laws and fair employment practices. These contracts are common in industries with fluctuating demand, such as retail and hospitality.

What is a zero-hour contract in India?

A zero-hour contract is an employment arrangement where the employer does not guarantee any minimum working hours, and the worker is not obligated to accept the work offered. It’s commonly used for casual, freelance, or gig-based roles—especially in sectors like hospitality, delivery, or on-demand services.

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What are the new rules for a zero-hour contract?

‍There are no specific or new laws in India that govern zero-hour contracts. However, employers must still follow general labour laws like the Minimum Wages Act, Payment of Wages Act, and social security regulations (like PF and ESI) if applicable. If a zero-hour arrangement turns into a regular engagement with consistent hours, it may trigger legal obligations under the Industrial Disputes Act or the Contract Labour Act.

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How much notice do I need to give on a zero-hour contract?

‍If there is no specific notice period mentioned in your contract, there is technically no legal obligation to give notice as a zero-hour worker. However, if you are treated as a regular employee, the standard notice period applies—typically 1 month, or as stated in your employment agreement. Employers too are not required to give notice when canceling shifts unless otherwise mentioned in the contract.