The reason why the number of zero hours employment contract offers has increased in the past years is that employers are seeking more cost effective manners in which they can meet their needs for employing some staff for short terms. There are opportunities for this type of employment in a number of sectors, especially in the retail industry and in the hospitality sector. Zero hours employment means that the people employed in such manner give their agreement to be available for doing work when that is required, but they will have no guaranteed working hours or working times. People on zero hours employment are practically on call, ready to go to work as and when the need for that arises.

Fair Work Australia

Companies and employers are not under the obligation to offer this type of work to their workers, but the zero hours employment contract may be needed in circumstances when there is no need for regular work to be done within regular working hours.

There are regulations with respect to this type of employment, such as the requirement for the payment of minimum wages in some countries. Furthermore, if the circumstances necessitate the workers on zero hours employment to remain in their workplace for specified time periods in the event that there arises work to be done, the time of waiting should be included in the total working time.