What this document is for

A Zero-Hours Employment Contract is a written agreement used when an employer wants to engage a worker on an as-needed basis without guaranteeing a fixed number of working hours each week or month. It sets out the terms on which work may be offered, how the worker will be paid, what rights and responsibilities apply, and how each side will manage the flexible nature of the arrangement.

This type of contract is commonly used in industries where staffing needs can change frequently, such as hospitality, retail, events, care support, warehousing, cleaning, logistics, seasonal work, and other businesses that need flexible labour. A zero-hours contract can help an employer call on workers when demand rises, while giving the worker the opportunity to accept work when available, subject to the law and the wording of the contract.

A well-written Zero-Hours Employment Contract is especially useful because flexible working arrangements can easily create misunderstandings if expectations are not recorded clearly. The contract helps explain that there is no guaranteed minimum number of hours, how work will be offered, whether the worker can refuse shifts, what the rate of pay is, and which employment rights apply during the relationship.

When to use it

Use a Zero-Hours Employment Contract when an employer wants to engage someone on a flexible basis and does not want to promise regular fixed working hours.

This document is useful when:

• a business needs workers only when customer demand increases
• staffing levels change from week to week
• the employer wants a pool of workers available for shifts when needed
• work is seasonal, irregular, or event-based
• the employer cannot guarantee a fixed schedule in advance
• the business needs flexibility in retail, hospitality, delivery, support, or casual operations
• a worker is willing to accept occasional or variable shifts
• the parties want written terms covering pay, shift offers, and basic employment conditions
• the employer wants a formal employment document for a casual working arrangement
• the worker wants clarity on whether they must accept work when it is offered

A zero-hours employment contract is especially useful where genuine flexibility is needed and the working pattern is not guaranteed in advance.

When not to use it

A Zero-Hours Employment Contract is not suitable for every type of working relationship. Some arrangements require a different contract structure.

You may need a different document if:

• the employee will work regular fixed hours each week
• the role is full-time or part-time with a predictable schedule
• the worker is an independent contractor rather than an employee
• the business wants to guarantee a minimum number of hours
• local law restricts or prohibits zero-hours arrangements in the relevant setting
• the role requires stable scheduling, fixed attendance, and long-term consistency
• the arrangement is really casual contracting rather than employment
• the worker is expected to be continuously available in a way that should be compensated differently
• the business needs a fixed-term employment contract instead
• the relationship could expose the employer to misclassification or labour law risk if labelled incorrectly

If the worker will in practice work regular shifts every week, a part-time or full-time employment contract may be more appropriate than a zero-hours arrangement.

Key clauses explained

A Zero-Hours Employment Contract should be drafted carefully because the flexible nature of the arrangement can create legal and practical issues if the terms are unclear.

Employer and employee details

This section identifies the employer and the employee by name. If the employer is a company or other legal entity, the correct legal name should be used.

Nature of the arrangement

This clause explains that the contract is a zero-hours arrangement and that the employer is not guaranteeing any minimum number of working hours unless stated otherwise.

Offer of work

The contract should explain how work or shifts will be offered to the employee, such as by schedule, message, call, email, or rota system.

Acceptance or refusal of work

A key clause in many zero-hours arrangements states whether the employee may refuse offered work and whether any consequences apply, subject to local law.

Rate of pay

This section records the employee’s pay rate, whether hourly or otherwise, and may explain overtime, weekend rates, holiday pay, or public holiday treatment if applicable.

Working time

The contract may explain that hours will vary depending on business needs and worker availability. It may also address breaks, rest periods, and maximum working time where relevant.

Place of work

This clause states where the employee may be required to work, especially if the employer has multiple sites or locations.

Duties

The agreement should explain the role or category of work the employee may be asked to perform.

Employment status and rights

A zero-hours contract should make clear that flexible hours do not remove any statutory rights that apply to employees under the law.

Leave and holiday

The contract should address annual leave, holiday pay, sick leave, and other statutory or contractual leave entitlements that apply to the employee.

Notice and termination

This section explains how either party may end the employment relationship and what notice applies, subject to local law.

Exclusivity and outside work

Some zero-hours contracts attempt to limit outside work, but this must be checked carefully because local law may restrict exclusivity clauses in flexible work arrangements.

Policies and conduct

The contract may refer to company rules on attendance, conduct, health and safety, confidentiality, and workplace procedures.

Governing law

This clause states which jurisdiction’s law applies, which matters because flexible work arrangements are regulated differently in different places.

Jurisdiction notes

Zero-hours employment arrangements are highly jurisdiction-specific. In some places they are allowed but regulated. In others they are restricted, discouraged, or subject to special rules on scheduling, worker protection, exclusivity, minimum standards, or employee rights.

Before using this Zero-Hours Employment Contract, check local law on:

• whether zero-hours arrangements are allowed
• minimum wage requirements
• working time rules
• rest breaks and rest periods
• holiday pay and leave accrual
• sick leave rights
• exclusivity clause restrictions
• notice requirements
• on-call or standby compensation rules
• employee classification and labour protections
• recordkeeping and payroll obligations
• anti-discrimination protections

In many jurisdictions, an employer cannot use a zero-hours contract to avoid statutory employment rights. If the worker in practice works regular hours over time, local law may treat the arrangement differently from how it is described on paper.

How to fill this out correctly

To complete a Zero-Hours Employment Contract properly, gather all of the key employment and operational details before drafting.

1. Enter the full legal names of the employer and employee.
   Use the correct entity name for the employer if it is a company or other organization.

2. State clearly that no fixed minimum hours are guaranteed.
   This is one of the defining features of the contract and should be expressed clearly.

3. Explain how work will be offered.
   State whether shifts are offered by schedule, call, app, message, or another process.

4. Clarify whether the employee can refuse work.
   The contract should reflect the real arrangement and comply with local law.

5. Add the pay details.
   Include hourly pay, overtime rules if any, payment intervals, and any other relevant pay structure.

6. Describe the role and duties.
   State the type of work the employee may be asked to perform.

7. Include working time and location terms.
   Explain where the employee may work and note that hours will vary.

8. Add leave and employment rights wording.
   Make sure the contract reflects statutory rights that apply.

9. Review notice and termination terms.
   Check that the wording complies with local labour law.

10. Check exclusivity wording carefully.
    Do not assume the employer can restrict outside work unless local law allows it.

11. Review all policies and references.
    Make sure any workplace rules referred to in the contract actually exist and are provided to the employee.

12. Have both parties sign and date the contract.
    Each party should keep a complete signed copy before work starts.

A zero-hours contract should be honest about the flexibility involved and should not suggest fixed or guaranteed work if that is not the real arrangement.

Common mistakes

Zero-hours contracts often create legal and practical problems when they are used carelessly. Common mistakes include:

• using a zero-hours contract for someone who works regular fixed shifts
• failing to state clearly that no minimum hours are guaranteed
• not explaining how work will be offered
• leaving unclear whether the employee can refuse shifts
• using exclusivity clauses that may not be lawful
• failing to include holiday and leave entitlements
• not paying correctly for all hours worked
• using contractor-style wording in an employment contract
• not checking local labour law before using the template
• assuming flexible work means fewer statutory rights
• failing to track hours properly
• not explaining notice and termination clearly
• not providing the employee with the workplace policies referenced
• creating a mismatch between the contract wording and the real working relationship

A zero-hours contract should reflect genuine flexibility, not disguise a regular working arrangement that should be documented differently.

Before you sign checklist

Before signing this Zero-Hours Employment Contract, review the following:

• Confirm the employer’s full legal name
• Confirm the employee’s full legal name
• Check that the contract clearly states no minimum hours are guaranteed
• Review how work or shifts will be offered
• Confirm whether the employee may refuse offered work
• Check the rate of pay
• Review payment timing and payroll details
• Confirm the role and duties
• Check the place of work
• Review leave and holiday wording
• Confirm notice and termination terms
• Check any exclusivity or outside work wording
• Make sure the contract complies with local employment law
• Ensure both parties understand the flexible nature of the arrangement before signing
• Sign and date all required pages
• Give each party a copy of the signed contract

Completed sample

Below is an example of how a Zero-Hours Employment Contract might look once completed. This sample is for illustration only.

Employer:
CityLine Hospitality Group (Pty) Ltd

Employee:
Thando Maseko

Role:
Events Support Assistant

Start Date:
1 April 2026

Nature of Contract:
This is a zero-hours employment arrangement. The employer is not obliged to provide any minimum number of working hours, and hours of work will depend on business demand and event scheduling.

Rate of Pay:
R78 per hour, payable monthly in arrears through payroll

Work Offer Process:
Shifts will be offered by weekly rota, message, or direct manager communication depending on event demand.

Acceptance of Work:
The employee may accept or decline offered shifts, subject to reasonable communication and attendance expectations set by the employer’s scheduling policy and applicable law.

Place of Work:
Various event venues and hospitality sites within Cape Town as directed by the employer

Leave:
Annual leave and holiday pay will accrue and be handled in accordance with applicable law and company policy.

Notice:
Either party may terminate the employment relationship by giving notice in accordance with applicable law and the terms of this contract.

Signatures:
Employer: ____________________
Employee: ____________________
Date: ____________________

FAQ

What is a zero-hours employment contract?

A zero-hours employment contract is an employment agreement where the employer does not guarantee a fixed number of working hours and offers work as needed.

Is a zero-hours employee still an employee?

In many cases, yes. The worker may still be an employee or worker under local law and may still have statutory rights even though hours are not guaranteed.

Does a zero-hours contract mean the employee must accept every shift?

Not always. That depends on the contract wording and local law. Many zero-hours arrangements allow the employee to refuse offered work.

Can zero-hours contracts be used for regular full-time work?

Usually that is risky or inappropriate. If the working pattern is regular and predictable, a part-time or full-time contract may be more suitable.

Do employees on zero-hours contracts get holiday pay?

In many jurisdictions, yes. Flexible hours do not usually remove the employee’s right to statutory holiday or leave-related entitlements.

Can an employer stop the employee from working elsewhere?

Not always. Some jurisdictions restrict exclusivity clauses in zero-hours contracts, so this should be checked carefully.

What rights do zero-hours employees have?

That depends on local law, but they may still have rights relating to pay, leave, working time, discrimination protection, and notice, among others.

Should I get legal advice before using a zero-hours contract?

That can be a good idea, especially because zero-hours arrangements are regulated differently across jurisdictions and can create risk if the real working pattern does not match the contract wording.

Related resources

You may also find these documents and guides useful:

• Employment Contract
• Termination Letter
• Independent Contractor Agreement
• Service Agreement
• Non-Compete Agreement
• Non-Disclosure Agreement (Mutual)
• One-Way NDA
• Contractor Invoice
• Partnership Agreement
• Shareholders Agreement