Working Arrangements (OCR GCSE Business)

Revision Note

Lisa Eades

Expertise

Business Content Creator

Introduction to Working Arrangements

  • Working arrangements have changed significantly in recent years

    • Many UK workers have some say in where and when they carry out their work

      • Remote working has become increasingly popular since the Covid-19 pandemic, with around 40% of workers enjoying some ability to work from home

      • Around 60% of workers have some flexibility in how there hours of work are arranged, including 4-day working weeks and flexitime

    • Whilst most workers are employed on permanent contracts, employers frequently make use of a range of casual arrangements

      • In 2023, more than 1 million UK workers were employed on zero hours contracts

      • A further 900,000 workers were employed indirectly through agencies

Full-time and Part-time Contracts

  • A full-time contract of employment requires an employee to work the total number of hours considered by the company to be full-time in a week

  • Full time employees work more hours in a company than part-time employees

    • In the UK, full-time employees are classified as those who work 35 hours a week or more

    • At Save My Exams, a full-time employee works 40 hours each week

  • Employees who work part-time may only work two or three days a week

    • Part-time employment may be more flexible and can be adjusted subject to employee availability and employer requirements

      • Part-time employees at the US company Costco work between 24 and 40 hours per week

  • The choice between full-time and part-time contracts depends on the specific needs of both employers and employees

    • Employers often value the commitment of full-time staff but also the flexibility of part-time workers

    • Employees may prioritise a stable income or a good work-life balance

Benefits of Full-time and Part-time Employment Contracts

Contract

Benefits for Employers

Benefits for Employees

Full-time

  • Full-time employees are typically more committed and invested in the businesses success

  • Employers can rely on full-time staff to work a standard number of hours per week

  • Scheduling and coordinating work among full-time employees is straightforward

  • Full-time employment provides a steady income and financial stability

  • Full-time employees often receive benefits like pension plans and paid time off

  • Full-time employees often have more opportunities for career development

Part-time

  • Part-time employees allow for flexibility in staffing, as part-time hours can be changed according to business needs

  • Part-time employees often cost less in terms of wages and benefits

  • Part-time workers are often a good source of candidates for internal recruitment

  • Part-time work offers more flexibility and work-life balance

  • It is an excellent option for students, parents, or those with other commitments

  • Employees can hold multiple part-time jobs to increase their income and experience

Flexible Working

  • Flexible working can involve a variety of employment arrangements

Flexible working arrangements can involve casual contracts, flexitime, working from home or whilst mobile, job sharing and shift work
Flexible working arrangements can involve casual contracts, flexitime, working from home or whilst mobile, job sharing and shift work

Casual contracts

  • An employee engaged on a casual contract works whenever the business needs them

  • This may be seasonal (summer or winter) or for a determined length of time

    • E.g. A ski instructor working for two months during a ski season at a resort in the French Alps

  • A zero hours contract is where an employee agrees to be available for work as and when required, with no particular number of hours or times of work specified

    • In the UK, zero-hour contracts are controversial

      • Trade unions and the media have accused businesses, such as Sports Direct, of using them to exploit workers

      • In 2015, UK employers were banned from offering zero-hour contracts that prevented employees from working for another employer at the same time

Shift working

  • Shift working means working different periods at different times, usually on a rota

  • It usually refers to anything outside of the standard Monday-Friday working week

    • Some warehouse employees might need to work an early shift to ensure deliveries are ready to go

    • In many care homes, night shifts are a regular part of the job

    • Shift working allows energy facilities and factories to operate 24 hours a day, seven days a week

  • In the UK, around 14% of the total workforce is made up of shift workers

Flexitime

  • Flexitime allows employees to schedule working hours around their individual needs and accommodate their commitments outside of work

  • A flexitime schedule usually involves working some set hours, with the remainder of hours organised according to the employees' needs

    • E.g. An employee may be expected to be at work between the hours of 10am and 2pm, but can choose when they complete the rest of their working hours

Working from home

  • Advances in communication technology have enabled a larger proportion of workers than ever before to work from home

    • Employees use tools such as email, instant messaging, collaborative software, scheduling apps and videoconferencing to carry out work remotely

  • Home working has a range of advantages and disadvantages, for both the business and its employees

An Evaluation of Working from Home

Advantages

Disadvantages

For the Business

  • Smaller or fewer premises may be required, reducing costs

  • High quality workers may be attracted from a wide geographical area

  • Workers may be more productive if they work in isolation, away from distractions

  • The cost of equipping workers with technology to work remotely may be significant

  • There may be less opportunity for collaboration between workers, reducing innovation

  • Careful monitoring will be required to ensure remote workers remain focused on tasks

For the Employee

  • Commuting costs, such as train fares, are eliminated

  • Stress reduced as a result of not having to travel to work

  • Some flexibility may be possible, allowing workers to manage other commitments

  • Staff may feel isolated from colleagues

  • Household costs such as electricity and heating may increase

  • A healthy division between work and home life may be difficult to manage

Mobile working

  • The availability of fast mobile data across the majority of UK locations means that employees can work in any location, including on public transport

    • Mobile network providers such as EE provide unlimited data that can be hot-spotted to digital devices such as laptops

    • Train operators such as Avanti West Coast provide free wi-fi access and charging points to users of its long-distance services

Job sharing

  • Job sharing is where two or more employees divide a job between them to cover one full-time role

    • Pay, benefits and leave entitlement for job sharing are allocated on a proportional basis

  • Job sharing can improve work-life balance as workers can manage work and personal time without sacrificing their position in a company

  • However, communication between those sharing a role is vital to avoid duplication or omission of tasks

Examiner Tip

You do not need to demonstrate detailed legal knowledge of the different types of employment contract. It is more important that you weigh up the benefits and drawbacks of employment contracts for both employers and employees.

Self-Employment

  • In the UK, more than 4 million people are self-employed

    • They are often sole traders or the owners of small, private limited companies

    • The self-employed are concentrated in the tertiary sector

      • Examples include plumbers, gardeners and hairdressers, working for themselves

  • The self-employed mostly work on their own, though around a fifth employ others within their businesses

  • Benefits of self employment include:

    • The ability for a business owner to be their own boss, making all decisions and determining their work patterns

    • The opportunity to keep profit for themselves

    • The chance to work independently, setting their own targets and balancing work with personal commitments

  • The self-employed need to manage their own tax affairs and may find it difficult to schedule holidays or cover for sickness.

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.