Zero-hours and low-hours contracts: What might be changing?

Latest developments

On 2 June 2026, the Government launched a consultation (running until 25 August 2026) on new rules affecting zero-hours and low-hours workers under the Employment Rights Act 2025.

Let’s be clear from the outset, the proposal is not that zero-hours contracts are being banned. Instead, the proposed focus is on addressing what’s often called ‘one-sided flexibility’, where arrangements benefit the employer far more than the worker, while still preserving flexibility where it genuinely works for both sides.

Please note - as this is still in consultation, it’s important to be clear that this is not all finalised in the law yet. , aAs soon as it is, we’ll let you know.

So, what does the current draft proposal suggest?

The biggest proposal is a new right for workers to request (and be offered) guaranteed hours where they are already working ‘regular’ working patterns.

The key things to understand at this stage are:

• If a worker consistently works more hours than their contract states, they may qualify
• The likely reference period is around 12 weeks
• Employers would need to offer a contract that reflects actual working patterns

Importantly, the proposal suggests:

• Workers could accept or decline the offer
• They could choose to remain on a zero-hours arrangement if that suits them as some employees like the fact that they can work flexibly for work life balance and personal commitment outside of work.

Current thinking suggests eligibility may sit somewhere between 8–20 hours per week, where a worker already has some guaranteed hours, but this is yet to be confirmed.

Seasonal and genuine temporary work

There will likely be exceptions for genuinely temporary roles, such as:

• Task-based work
• Event-based roles
• Short -term project work

However, the Government has flagged concerns that this may not fully cover seasonal demand, and part of this consultation considers whether the definition needs to be broadened.

This will be one to watch, particularly for sectors with fluctuating demand such as hospitality, retail, agricultureal staff and event staff and events.

Agency workers

These proposals currently do include agency workers.

The current proposed position suggests:

• The hirer (end employer) would usually be responsible for offering guaranteed hours
• But there is discussion around whether responsibility should sometimes sit with the agency.

This is an area where clarity is still needed, and arrangements may become more complex in practice.

Notice of shifts

Workers are also likely to gain a right to reasonable notice of shifts and any changes.

The proposed ranges are:

• 1 to 4 weeks for directly engaged workers
• Under 5 days to 4 weeks for agency workers

If insufficient notice is given, according to the current proposals, workers could bring a tribunal claim for any resulting losses.

Last-minute shift changes

Another key proposed change is the introduction of payments for cancelled or altered shifts.

Workers may be entitled to compensation where shifts are:

• Cancelled
• Shortened
• Moved

“Short notice” is likely to fall somewhere between 1 and 7 days, with potentially higher payments for very last-minute changes.

Compensation would be based on a proportion of the employees expected earnings.

There are sensible suggested exclusions in the current proposal:

• No payment where the worker cancels or swaps the shift
• No payment if the worker fails to attend

Enforcement and risk

Based on the current consultation, enforcement will sit primarily with:

• Employment tribunals (for guaranteed hours and notice rights)
• Potentially Fair Work Agency (for compensation enforcement)

Proposed penalties include:

• Up to 50% of arrears
• Capped between £100 and £5,000 per worker

What this could mean for employers and how to prepare

If these proposals go ahead, the impact on day-to-day management of people is not insignificant.

As an employer, you will need to start thinking about:

1. Recording actual hours worked

If you don’t already have robust tracking, this will become necessary.

We can support with this, we are proud partners of Breathe HR, which has an inbuilt rota system so you can easily track shifts, work hours and working patterns.

Give us a call and we can support you with setting up and managing your account. Plus, you will get a 2-month free trial if you sign up with us so you can “ try before you buy”.

2. Reviewing your “casual” workforce

Where individuals are working regular patterns, they may no longer be considered truly casual.

We can support you with auditing your current casual workforce, reviewing contracts and putting an action plan in place.

3. Tightening scheduling practices

Rotas, notice periods and cancellations will need to be far more structured and consistent.

We can support by introducing a consistent rota framework, setting clear rules and expectations around shift notice periods, and developing a structured rota and scheduling policy. We’ll also provide guidance and training for managers on effective rota planning, fair allocation of shifts, and how to manage last-minute changes in a consistent and appropriate way.

4. Reducing reliance on informal arrangements

Informality is likely to increase tribunal risk under these changes.

We can support by formalising current arrangements into clear policies and processes, ensuring there is appropriate documentation and audit trails in place. We’ll help align working practices with contracts, provide guidance and training to managers on applying arrangements consistently, and introduce clear approval frameworks to reduce reliance on informal decision-making and minimise tribunal risks.

The bottom line

This isn’t about removing flexibility. It’s about making flexibility fair, transparent and more balanced.

Based on the current consultation, the key risk areas for employers are likely to be where:

• “Casual” staff are working regular, predictable hours
• Shift changes and cancellations are frequent and made at short notice

Important note: This is still in consultation

While we’ve shared what is being consulted on, please remember this has not yet been finalised and, if you’d like to share your views on it as an employer, please visit the following GOV.UK consultation page.