If your business uses zero-hours or similar contracts, there are just two weeks left to respond to the Government’s consultation on proposed changes to the way these contracts operate. The consultation closes on 25 August 2026.
Zero-hours contracts can provide useful flexibility for both employers and workers. However, the Government is proposing changes intended to give workers greater certainty over their working hours, while still allowing flexibility where it is genuinely needed.
The consultation is looking at how these new rights should work in practice. For employers who use zero-hours or variable-hours contracts, it is therefore worth understanding what is being proposed now.
What could change for zero-hours contracts?
The proposed reforms include new rights relating to:
- Guaranteed hours – qualifying workers could have the right to be offered hours that reflect the hours they regularly work.
- Reasonable notice of shifts – employers could need to provide more notice of shifts and changes to shifts.
- Payment for cancelled or changed shifts – workers could be entitled to compensation where shifts are cancelled, moved or cut short at short notice.
The Government is also seeking views on important practical issues, including how a worker’s usual working pattern should be assessed and how the new rights should apply to seasonal and temporary work.
Are zero-hours contracts being banned?
No. The proposed changes do not amount to a ban on zero-hours contracts.
The intention is to address what the Government describes as “one-sided flexibility”, where workers have little certainty about when they will work, while retaining flexibility for businesses and workers where that arrangement suits them.
What should employers do now?
With the consultation closing on 25 August 2026, employers who use zero-hours or similar contracts have an opportunity to contribute to how the new rules will work in practice.
You may want to:
- Respond to the consultation and share your views on the proposed changes, particularly where you believe they could have practical implications for your business.
- Review how you currently use zero-hours and variable-hours contracts.
- Consider whether workers regularly work more hours than their contracts provide for.
- Think about how requirements around shift notice and payment for cancelled or changed shifts could affect your business.
- Keep up to date with the outcome of the consultation and any further legislation or guidance.
You don’t have to answer every question in the consultation, just those most relevant to you.
If you use zero-hours contracts and would like to understand how the proposed employment law changes could affect your business, our employment law experts can advise you on what to consider and how to prepare – Call or Email today.
