UPDATED 4.58pm: SkyCity will stop using zero hour contracts from the beginning of next year.

Several months of negotiations between SkyCity, Unite Union, and the Service and Food Workers Union has caused the change.

SkyCity said it's now up to other business to follow suit in abolishing zero hour contracts.

Spokesperson Grainne Troute said it made sense for the company to offer security for its employers.

"Ultimately it's up to other companies to make their own decisions, but we're pleased to show leadership in the area."

Unite Union's Tom Buckley said SkyCity are leading the way in the hospitality industry, and will prove the industry doesn't need controversial contracts.

He said security of hours means workers are much happier, which makes for a happier employer, and is "a respectful way for people to conduct business with each other."