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AQA GCSE Business · 8132
AQA 8132 · Recruitment and Selection Methods Check the specification (PDF) (opens in a new tab)
A contract of employment is an agreement setting out the terms on which someone works for an employer, including their hours and pay. Choosing suitable contracts helps a business have enough staff when they are needed, while controlling wage costs. Employees also need arrangements that suit their income needs and other commitments.
The four arrangements here differ mainly in how many hours people work, how a role is divided and whether any hours are guaranteed.
A full-time employee works the employer’s normal full working week. A part-time employee works fewer hours than someone in an equivalent full-time role. Full-time work usually means 35 hours or more each week, but there is no universal number of hours that legally separates the two.
For example, imagine a shop where the normal full-time week is 40 hours. An employee working that week is full-time; someone employed for 16 hours each week is part-time. Those part-time hours might be spread across several days or concentrated into two busy days.
Part-time does not mean that hours must be unpredictable. A part-time employee can have a regular, agreed weekly schedule. Any flexibility in changing those hours depends on the arrangement between employer and employee.
For the business, full-time employees provide reliable coverage across the working week. Knowing when employees will be available makes scheduling and coordinating work easier. Spending more time in the business can also help staff become closely involved in its activities and develop commitment to its success, although commitment is not guaranteed by a contract alone.
For the employee, regular hours and pay provide a steady income, making household budgeting easier. Working throughout the week may also make it easier to gain experience, take on responsibilities and pursue career development.
These benefits fit a business with a steady need for staff throughout the week. However, paying for a full working week may be less suitable if work is concentrated into a few short busy periods. For the employee, full-time hours leave less time for study, caring responsibilities or other commitments.
For the business, part-time contracts can help match staffing to demand. A shop that is especially busy at weekends could employ someone specifically for those periods rather than pay for additional full-time coverage throughout the week. Fewer contracted hours normally mean lower total wages for that role, assuming the same hourly rate.
Part-time employees can also provide a pool of experienced candidates for future vacancies. Someone already familiar with the business may later move into a different role or increase their hours.
For the employee, fewer working hours can make paid work easier to combine with education, childcare or other responsibilities. This can improve work–life balance. Some people choose more than one part-time job to build their income or gain experience in different workplaces.
The trade-off is that fewer paid hours usually mean lower total earnings at the same hourly rate. A business employing several part-time workers may also need to coordinate more schedules and handovers.
Part-time workers should not generally receive less favourable treatment simply because they work fewer hours. Comparable hourly pay rates and access to training and promotion should not automatically be lower. Some entitlements, such as holiday, are calculated pro rata: in proportion to hours worked. Full-time employment is therefore not the only route to employment benefits or career development.
A job share divides one job between two people, usually through two part-time contracts. Occasionally, more than two people share a role.
For example, two employees might share a receptionist post: one covers the beginning of the week and the other covers the remaining days. Together they provide coverage for the whole role, while each works part-time.
This is different from simply employing two unrelated part-time workers. The job sharers divide the responsibilities of the same post. Clear communication and handovers help them keep the work consistent when responsibility passes from one person to the other.
Under a zero-hour contract, the employer does not guarantee a minimum number of working hours. Work is offered when the business needs it. Unlike a regular part-time arrangement, the worker cannot rely on a fixed number of hours each week.
This gives the business flexibility when its staffing needs vary. For the worker, however, changing hours can mean changing earnings, making budgeting harder. The central distinction is not whether someone works many or few hours in a particular week: it is whether any minimum hours are guaranteed.
There is no single best contract for every situation. A business needing dependable coverage throughout the week may value full-time employment. One needing extra staff for short, predictable busy periods may prefer part-time employment. Job sharing divides a single role, whereas a zero-hour contract leaves the amount of work unguaranteed.
A suitable choice balances the business’s workload and costs with employees’ needs for income, predictability and time outside work.
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| Arrangement | Essential feature |
|---|---|
| Full-time | Works the employer’s normal full working week. |
| Part-time | Works fewer hours than an equivalent full-time employee. |
| Job share | Two people, occasionally more, divide one role. |
| Zero-hour | No guaranteed minimum working hours. |
Full-time usually means 35+ hours weekly, but there is no universal legal cut-off. Part-time hours can be regular; zero-hour contracts do not guarantee hours.
| Contract | Business | Employee |
|---|---|---|
| Full-time | Reliable weekly coverage; easier coordination; potential commitment. | Steady income; experience and career-development opportunities. |
| Part-time | Coverage targeted at busy periods; lower total wages for fewer hours; potential internal recruits. | More time for other commitments; work–life balance; scope for multiple jobs. |
Judgement: match the contract to staffing demand, costs and the employee’s needs.
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Apply your comparison to the business: predictable demand may favour full-time staff, while short busy periods may favour part-time staff.
Explain benefits as a chain: staffing busy periods more closely → fewer unnecessary paid hours → lower wage costs.
Distinguish lower total pay for fewer hours from a lower hourly pay rate. Part-time workers are not automatically paid less per hour.
When judging a contract, consider both the employer and employee, then explain which needs matter most in the situation.
Contract of employment
An agreement between an employer and an employee setting out the terms of employment, including working hours and pay.
Full-time employment
Employment involving the normal full working week set by the employer.
Part-time employment
Employment involving fewer working hours than an equivalent full-time role.
Job share
An arrangement in which two people, or occasionally more, divide the hours and responsibilities of one job between them.
Zero-hour contract
An employment arrangement in which no minimum number of working hours is guaranteed and work is offered as required.
Pro rata
In proportion to the hours worked, such as receiving half a full-time entitlement when working half the full-time hours.
Put your knowledge into practice — try past paper questions for Business
Contract of employment
An agreement between an employer and an employee setting out the terms of employment, including working hours and pay.
Full-time employment
Employment involving the normal full working week set by the employer.
Part-time employment
Employment involving fewer working hours than an equivalent full-time role.
Job share
An arrangement in which two people, or occasionally more, divide the hours and responsibilities of one job between them.
Zero-hour contract
An employment arrangement in which no minimum number of working hours is guaranteed and work is offered as required.
Pro rata
In proportion to the hours worked, such as receiving half a full-time entitlement when working half the full-time hours.