Changes to zero hours contracts are coming

Zero hours contracts have always offered flexibility. But without the right safeguards, they can often leave workers carrying too much of the risk. That’s why the government is introducing new rights to make work more predictable, fair and secure.

The goal is to end ‘one-sided flexibility’. That means giving workers more security over:

• The hours they work
• The notice they receive for shifts
• What happens if shifts are cancelled

These new rights won’t remove flexibility altogether. In fact, workers can choose to stay on a zero hours contract if that suits them, but the default will be shifting towards more predictability.

What’s changing?

Right to request guaranteed hours

Eligible workers will have to be offered a guaranteed hours contract that reflects the average hours worked over a legislatively defined period. This is currently expected to be the previous 12 weeks of work. Employers must offer this, but workers can decline and remain on their current arrangement if they prefer.

Right to reasonable notice of shifts

Employers will need to give workers reasonable notice of upcoming shifts. If notice is too short, workers will be able to raise a tribunal claim. The government will set out what counts as ‘reasonable’, but each case will be considered based on its circumstances.

Right to compensation for cancelled or changed shifts

If a shift is cancelled, shortened or moved at short notice, workers must be compensated. Again, the exact definitions of ‘short notice’ will be set in upcoming regulations, but the sentiment is that financial risk shouldn’t fall on the worker.

What about agency workers?

The rules will apply slightly differently for agency staff, but key protections will still stand:

• Either the agency or the hirer must offer guaranteed hours, the hirer will be obliged by default, but there will be flexibility in certain scenarios
• Both are responsible for giving reasonable notice of shifts
• If shifts are cancelled at short notice, the agency will have to follow the same rules as the employer and compensate the employee
• The government will consult further on how this works in practice.

Will zero hours contracts still be allowed?

Zero hours contracts aren’t going anywhere. It remains an attractive option for many, especially for those who value flexibility, such as students or carers. Workers can still opt to remain on a zero hours contract. These reforms are about creating a fairer baseline, not removing flexibility altogether.

What’s next?

The government will now consult on how to implement these measures. Final regulations will confirm:

• What counts as ‘reasonable’ notice
• What compensation looks like for cancelled shifts
• How the rights apply across different industries

The changes are part of the new Employment Rights Bill, but they won’t come into effect until late 2027 according to the governments recently published Employment Rights Bill roadmap.

We’ll keep you updated as things progress and let you know when you need to take action.