The concept involves an agreement between an employer and a worker where the employer is not obligated to provide a minimum number of working hours, and the worker is not obligated to accept any work offered. This arrangement typically means the individual is only paid for the hours actually worked. For example, a retail business might employ staff under this framework to cover peak shopping times, without guaranteeing them a set schedule or regular income.
Such agreements offer businesses flexibility in staffing levels to meet fluctuating demands, reducing labor costs during quieter periods. Historically, these arrangements have been utilized in sectors with variable workloads, enabling organizations to efficiently manage resources. However, this type of employment can result in income insecurity and challenges in financial planning for the individuals involved.
