What does zero-hour contract mean?
A zero-hour contract gives the employer flexibility to offer work when it is needed, and the worker is not promised a fixed number of hours each week. Pay depends on the hours actually worked in each pay period.
This can suit work that changes a lot from week to week, such as events, seasonal demand, or cover for absent staff. For the worker, it means income can be uncertain, so the terms should be clear from the start.
Zero-hour contracts in Southeast Asia
Indonesia, the Philippines, Malaysia, Vietnam and Thailand don't use zero-hour contracts as a legal category. Flexible or irregular work is covered by each country's own rules instead.
In Indonesia, for example, Government Regulation No. 35 of 2021 allows daily work agreements for work done on fewer than 21 days a month. If the worker works 21 days or more a month for three months in a row, the arrangement becomes a permanent (PKWTT) employment relationship. Malaysia has separate regulations for part-time employees under the Employment Act 1955.
Whatever the arrangement is called, the worker may still be an employee. That means minimum wage, payslips, statutory contributions and other employment rules may apply to the hours worked.
Common mistakes employers should avoid
A common mistake is copying a UK-style zero-hour contract into another country. The local law decides what kind of arrangement it is and what the employer must provide.
Another mistake is treating flexible workers as contractors by default. If the person works under the company's direction and is paid for their time, they may be an employee under local rules.
Note: Flexible work rules differ by country and may change. Employers should check local requirements before offering contracts without fixed hours.
