Working Conditions & Employment
Types of Employment Contracts
The hospitality and catering industry uses a range of employment contracts to match the varied and often unpredictable demands of the sector. The WJEC specification requires you to understand five types of contract and their implications for both employers and employees.
The five types of employment contract in the hospitality industry are: casual, full-time permanent (or temporary), part-time (or temporary), seasonal, and zero-hours.
- Full-time permanent — the employee works a set number of hours each week (usually 35–40 hours) with an ongoing contract. This provides job security and stable income. Temporary full-time contracts cover a fixed period, such as maternity cover.
- Part-time — the employee works fewer hours than full-time, often on set days. This suits people with other commitments, such as students or parents. Temporary part-time contracts cover short-term needs.
- Casual — the employee has no guaranteed hours and works when needed. Common for event catering or busy weekends.
- Seasonal — employment for a specific time of year when demand is high, such as summer in a seaside hotel or Christmas in a restaurant.
- Zero-hours contract — the employer offers work when available, but there is no guarantee of hours. The employee can accept or decline. This gives employers flexibility but provides little job security for the worker.
Remuneration & Benefits
Remuneration means the total payment and benefits an employee receives for their work. In hospitality and catering, remuneration can take several forms:
- A salary — a fixed annual amount paid monthly, regardless of exact hours worked. More common for management roles.
- A wage (hourly) — payment based on the number of hours worked. The most common form for waiting staff, kitchen assistants, and housekeeping.
- Tips, bonuses, and rewards — additional payments from customers (tips) or the employer (bonuses for good performance). Tips can form a significant part of income for waiting staff.
Employees in the industry may also receive benefits such as:
- Holiday entitlement — paid time off (workers are entitled to 5.6 weeks' paid holiday; this is 28 days for a five-day week and may include bank holidays).
- Pension — contributions towards the employee’s retirement savings. All employers must offer a workplace pension scheme.
- Sickness pay — payment when the employee is too ill to work. Statutory Sick Pay (SSP) is the legal minimum.
- Rates of pay — the hospitality industry must comply with the National Minimum Wage and National Living Wage set by the government.
A salary is a fixed annual amount divided into equal monthly payments. It provides financial stability because the employee knows exactly how much they will earn each month. A wage is calculated by multiplying the number of hours worked by the hourly rate. Wage earners benefit when they work overtime (extra hours at a higher rate), but their income varies if hours fluctuate. In hospitality, senior managers and executive chefs tend to receive salaries, while waiting staff, kitchen assistants, and housekeeping are typically paid hourly wages.
Supply & Demand in the Industry
The hospitality and catering industry normally provides more part-time positions than full-time ones. Demand for staff fluctuates significantly depending on several factors:
Supply and demand for staff is affected by four main factors: peak times (busy evenings, weekends), large events (weddings, festivals, conferences), seasonal times (summer holidays, Christmas), and the location of the provision (tourist areas need more staff in high season).
During peak times, such as Friday and Saturday evenings, restaurants need more waiting staff, chefs, and bar staff. During quiet midweek periods, fewer staff are needed. Large events like weddings, conferences, and music festivals create a sudden spike in demand for temporary workers.
Seasonal work is especially common in tourist areas. A seaside hotel may employ double the staff in July and August compared to January. Ski resorts, Christmas markets, and summer festivals all create seasonal employment. Workers may move between different seasonal jobs throughout the year.
The location of a business also affects staffing. A restaurant in central London faces intense competition for workers and may need to offer higher wages to attract staff. A rural pub may struggle to find employees because fewer people live nearby.
For employers: Flexible contracts (casual, zero-hours, seasonal) allow them to match staffing levels to demand, reducing labour costs during quiet periods. However, high staff turnover can increase recruitment and training costs, and a lack of committed staff may reduce service quality.
For employees: Flexible work can suit students or people with other commitments. Tips and overtime can boost income during busy periods. However, unpredictable hours make it difficult to plan finances, and zero-hours workers may not receive the same benefits as permanent staff. Job insecurity can cause stress and reduce motivation.