(Solution) CIPD 5HR02 suitable types of contractual arrangements dependent on specific workforce needs. (AC 4.1)


When employer and employee enter into a contract of employment, it is considered as legally binding. Its main aim is to bond both parties ensuring they understand their roles and responsibilities. It acts as a security between both parties in that each part has an obligation as stated in the contract.

Fixed-term contract

This type of contract is set in advance for a certain length and is suitable for workforce needs like maternity leave and long-term holidays. BMG might consider fixed-term contract when it expects some employees to take a long-term leave or holiday. Its advantages are continuous supply of labour in the workplace and employees can gain valuable experience for career development (Alderotti et al., 2021). However, it does not offer job security because employee become jobless when the contract ends.

Zero-hour contract

Zero-hour contract happens when employer calls workers for a piece of work or when work is available (Farina et al., 2021). For example BMG can have zero-hour contract for workforce needs such as warehouse and delivery driving. Its advantage is flexibility in nature. Employer do not have to give them work and workers can work for other employers. However, it does not provide job security. Employer is not sure these workers will come for work and similarly, workers are not sure they will be called for job.

Part-time  contract Part-time contract is for workers or employees who work for fewer hours than full-time employees in the same company (Abdullaeva, 2022). It is suitable for workforce needs such as work-life balance or flexible working. For example, BMG can have part-time workers to release full-time workers in the manufacturing department. Its advantage include seasonal support and expanded pool of talents. During peak season, BMG can have part-time employees to check on customers. BMG can also cast a wider pool of talent within part-time workers. Its disadvantages include resentments due to workload differences and potential for inconsistent work.

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