The number of workers on zero-hours contracts continues to rise despite Government plans to tighten protections.
The Employment Rights Act 2025 creates a complex new suite of rights for zero and low hours workers. This includes requiring employers to offer contracts for a guaranteed number of hours to zero/ low hours workers. The number of hours offered will need to reflect the average number of hours that worker worked in a reference period (to be specified in further regulations, but potentially 12 weeks). Employers will also need to provide zero/ low hours workers with reasonable notice of shifts and of cancellations or changes to scheduled shifts, as well as compensation for cancelling or changing shifts at short notice. These protections are due to come into force in 2027.
Whilst we move toward major reform, we continue to see a rise in the use of zero/ low hours contracts. The trend suggests that employers are reliant on flexible working models, possibly due to cost pressures, demand volatility and ongoing recruitment challenges.
We await to see whether the upcoming changes will affect the use of zero/ low hours contracts. In the interim, businesses are encouraged to audit their current use of zero hours contracts to assess whether patterns already resemble regular hours and to review their scheduling practices.
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