Consultation on Rights for Zero Hour Contract Workers

The Department for Business and Trade has launched the latest round of consultations  under the government’s manifesto to Make Work Pay.

This recent consultation is seeking views on ongoing proposals to end one sided flexibility by ensuring that all jobs provide a baseline of security for  workers. The focus of the consultation seeks views on the recommendations for reforms to Zero hour and other low paid contracts.

The reforms will apply to qualifying workers, those that are employed under a zero hour contract (Casual workers) and extends to Agency workers and will ensure that they have protected rights through the stability of work but equally seeks to strike the right  balance that is workable for businesses.

The consultation is seeking views on the following:

The right to guaranteed hours

Employers will be required to offer qualifying workers guaranteed hours where they regularly work for an employer but whose contractual arrangement does not reflect the hours they regularly work and includes those working low guaranteed hours who consistently work more.   Using a reference period of 12 weeks this is the preferred period as set out in the proposals, employers must provide new or varied contracts that set out a minimum number of hours work expected to be undertaken as agreed by both parties.

Workers will have  the right to decline an offer of guaranteed hours and can remain employed on existing terms. Where an offer of guaranteed hours is not provided workers will have the right to request this, provided there is a pattern of regular hours worked in the reference period. For those working low hours, the proposal is to set a threshold of between 8 to 20 hours a week for this group to be brought into scope for the guaranteed hours.

The right to reasonable notice of shifts

Employers will be required to provided reasonable notice of shifts and cancellations /variations. To offer workers stability in knowing in advance when they will be required to work. It is undecided at present what will be defined as a reasonable period but proposals range between 1 and 4 weeks. Statistical data provided by the Living Wage Foundation and CIPD suggest an average notice period of 1 week or less is typically what is provided at present.

The consultation proposes that the notice period might differ if the shifts are already contractually agreed which may command a longer notice period verses, the offer of additional shifts not previously agreed may require a shorter notice period since the worker would simply be refusing without obligation.

Payment for Shifts

Employers will be expected to compensate workers when a shift is cancelled, moved or curtailed at short notice to protect workers from financial detriment. The consultation seeks to ensure that workers do not suffer out of pocket expenses connected to childcare or by missing out on opportunities to accept other jobs. The proposals make clear this will not apply when the worker cancels a shift.

Short notice periods is not defined at this stage but proposals are looking a 2 tier period:

• Short notice between 1 and 7 days.
• Very short notice, between less than 1 day up to 5 days.

Proposals for compensation payments will depend on whether the shift is cancelled, if so, a payment that is equal to what the worker would have earned on that shift and for changes to a shift suggestions are that a percentage of the pay due for that shift might be considered.

Whilst agency workers are covered by the rules there are additional considerations that  may create some complexities connected to the contractual engagement, for example, whether the agency worker contracts directly with the agency or through Umbrella companies could impact some of the rights.

The consultation will close on 25 August 2026.

To have your say you can provide your feedback here: Ending one sided flexibility zero hour contracts

According to Living Wage Foundation research1 , 68% of workers on contracts guaranteeing 1 to 8 hours per week work beyond their contracted hours, compared to 49% on 9 to 15 hours and 19% on 16 to 24 hours.