The Employment Rights Bill seeks to end "one-sided flexibility" for the UK’s 1.2 million zero-hours workers, requiring employers to offer guaranteed hours and give advance notice of shifts. How to ensure compliance?
Shutterstock.com/JLco Julia Amaral
Under the upcoming UK Employment Rights Bill (ERB) – expected to receive Royal Assent in November 2025 – organisations will be obliged to offer agency workers guaranteed hours and provide “reasonable notice” of shifts. The law aims to provide all workers a baseline of job security and predictability, making it easier for individuals to plan their lives and finances.
Around 1.2 million UK workers are thought to be on zero-hours contracts in 2025. Major corporations, including McDonald’s, Burger King and Domino’s, currently make use of zero-hours workers. Such arrangements are commonplace across hospitality, social care and retail.
27% of those on zero-hours contracts report that they would like to work more hours, while almost 60% say they receive less than a week’s notice about their shift patterns.
The rule changes will not outlaw zero-hours contracts altogether. Workers who receive offers of guaranteed hours may turn them down if they would prefer to continue benefitting from the flexibility afforded by zero-hours contracts.
Lexology PRO considers the key reforms to zero—hours contracts anticipated under the ERB, and steps hirers can take to prepare for compliance.
What are the new requirements?
The UK government wants to curb the “one-sided flexibility” that negatively impacts workers on zero-hours contracts. Whereby, workers bear the financial risk, while hirers are free to cancel shifts at the last minute or drastically cut workers’ hours without notice.
Requirement for guaranteed hours
The duty to offer guaranteed hours kicks in when an agency worker has worked more than their contracted hours over a particular reference period. The reference period has yet to be defined, but is expected to be around 12 weeks, starting on the first day of assignment and continuing in 12-week blocks thereafter.
Hirers will then be required to offer a guaranteed hours contract, reflective of the hours that the worker regularly worked during their last reference period.
Timeline for guaranteed hours offer
The offer must be made within a particular time period, known as the “offer period”. The agency worker will then have a set period within which to accept or decline the offer, known as the response period. The exact duration of the offer and response periods will be set out in further legislation.
Obligation to provide reasonable notice
The ERB will also introduce an obligation for hirers to provide “reasonable notice” before scheduling or cancelling shifts for zero-hours workers. Failure to provide the necessary notice could mean workers are entitled to compensation. Again, what constitutes “reasonable” will be set out in secondary legislation.
Protections for agency workers
The UK government has confirmed that ERB’s provisions on zero-hours contracts will extend to agency workers. Where a qualifying agency worker is entitled to a guaranteed hours contract, it will be the responsibility of the end hirer to make that offer.
Responsibility for providing agency workers with reasonable notice of shifts will reside with both their agency and the end hirer; where reasonable notice is not provided, an employment tribunal will need to apportion liability.
What are the penalties?
Eligible workers who are not offered hours in accordance with the provisions of ERB will be entitled to bring an employment tribunal claim against their hirer, and potentially their agency, subject to a 6-month time limit. If the claim is successful, the tribunal must make a declaration and may make an award for compensation.
Additional regulations will determine the compensation workers are entitled to, but this will not exceed the amount they would have earned for the cancelled shift. In the case a shift is moved, compensation will apply to any part of the original shift not covered by the new one.
Preparing for compliance with the ERB
According to current expected timelines, the ERB’s enhanced protections for zero-hours workers will not take effect until 2027. However, considering the impacts the changes will likely have on the working models of companies, from restaurants to residential care homes, it would be prudent to begin preparations soon.
Companies should consider auditing their current use of zero-hours workers, reviewing hiring contracts and strengthening their workforce planning, among other steps.
Review and update contracts
Hirers will need to review their hiring contracts and update them to reflect the new minimum hour requirements, notice periods, and cancellation policies.
Monitoring reference periods and work patterns
Hirers should carry out a current workforce audit to assess the use of zero-hours contracts and shift practices across the organisation, as well as reviewing working patterns over blocks of 12 weeks.
According to the proposed application of the rules, zero-hours workers will each have their own individual reference periods, continuing from their first day of assignment. Companies need to consider how they will keep track of these, to ensure they offer any eligible workers guaranteed hours contracts within the prescribed timeframes.
Provide training for managers
HR, senior leaders and shift managers should receive tailored, job-specific training on the new legislation, clearly setting out how the rule changes have been reflected in updated company policies and highlighting the new rights for workers.
This is to ensure they can handle any queries and requests from workers as efficiently as possible and be able to schedule shifts appropriately and in compliance with the updated rules.
Clearly communicate changes to workers
The ERB places the obligation on hirers to offer eligible workers guaranteed hours contracts; it is not the responsibility of workers to request one. Therefore, companies should clearly communicate the upcoming changes to their workforce, ensuring they understand their new rights under the ERB, including their right to accept or decline an offer of guaranteed hours.
Hirers may also wish to consider opening communications with trade unions in the interest of negotiating updated collective agreements to allow more flexibility in the use of zero-hours contracts.