# What is a Zero-Hours Contract?

A zero-hours contract has no guaranteed hours. SMEs use them for flexibility but must manage fairness and compliance. Transparency about rights and expectations is critical.

Source: https://faqtic.co/glossary/zero-hours-contract

## Why it Matters for SMEs

- Provides flexibility
- Reduces cost
- Supports variable demand

## Example in Practice

Factorial stores contract type and hours worked for audit.

## Frequently Asked Questions

### Are zero-hours legal?

Yes, in some countries with safeguards.

### Do staff get rights?

Yes, proportionate to hours.

### Risks?

Misuse can harm reputation and trust.

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