Zero-hours and “low-hours” working is about to be reshaped by the most significant package of statutory rights in the area since the 1990s. For employers, the practical difficulty is that the headline reforms are now law in principle but practically nothing about how they will operate in practice is yet fixed. In this Keynote, Employment partner Keely Rushmore sets out (as of 31 October 2026) what is confirmed, what remains subject to new regulations and further consultation, and where the gaps and timing risks lie.
What is confirmed, and where is there uncertainty?
Three things can currently be stated with confidence:
- The Employment Rights Act 2025 Act (“the Act”) inserts a new regime into the Employment Rights Act 1996, creating three distinct rights for zero-hours and low-hours workers: a right to be offered guaranteed hours, a right to reasonable notice of shifts, and a right to payment for shifts cancelled, moved, or curtailed at short notice.
- These rights are not yet in force. The substantive duties themselves remain dormant, and subject to consultation and/or new regulations.
- The detail is left to new regulations. The key principles – for example, what counts as a “low-hours” worker, what notice is “reasonable”, what counts as “short” notice, and how much the cancellation payment will be – are all as yet undefined.
The commencement date, the key thresholds, and the mechanics all depend on consultation outcomes and regulations still to come. The expectation is that the new rights will be effective in 2027, but this is drawn from the Government’s published roadmap rather than a date fixed in law. So, 2027 is a target, not a certainty: there is a real possibility that the rights may be introduced in a phased way or delayed given how much remains to be settled.
Importantly, zero-hours contracts are not being banned. The Government has expressly recognised that they work well for some, for example, students and those with caring responsibilities, and the reforms are aimed at “one-sided flexibility” rather than casual work as such.
Note that this article does not address the changes that are anticipated in relation to agency worker rights.
The three core rights
1. A right to be offered guaranteed hours
Employers will have a duty to make a “guaranteed hours offer” to a qualifying worker after the end of each reference period. The offer must be either a variation of the worker’s existing terms or a new contract, requiring the employer to provide (and the worker to do) a number of hours that “reflects” the hours actually worked in the reference period. In other words, a pattern of regular hours worked under a nominal zero-hours arrangement converts into a contractual entitlement to those hours.
Two categories of worker qualify: those on a zero-hours contract or arrangement, and “low-hours” workers – those guaranteed a minimum number of hours below a specified threshold who in fact work more than that minimum. The duty applies at the end of each reference period and continues to bite until the worker is no longer a low-hours worker.
Crucially, the worker can decline the offer and stay as they are. The right is to be offered guaranteed hours, not to be compelled onto them. There is also scope for fixed-term offers where it is reasonable to conclude the worker is needed only for a specific task or a “temporary need” (the meaning of which is not yet defined). Employers must notify the worker where an exception applies and must give workers information about their guaranteed-hours rights (again, the detail of this will be set out in regulations).
The reference-period length (anticipated to be 12 weeks, but not fixed), the low-hours threshold, any further conditions on the number or regularity of hours, and the categories of “excluded worker” are all left to regulations. The reference period is to be consulted on, and there is the power for further exceptions to be introduced.
2. A right to reasonable notice of shifts
The second right requires an employer to give reasonable notice of a shift it asks the worker to work, and reasonable notice of any cancellation of, or change to, a shift. A “change” includes moving the start or end time or cutting hours through a break in the shift.
The specified notice period, the categories of contract caught, and the form and manner in which notice must be given are all left to regulations. What amounts to “reasonable” notice is a key practical unknown.
3. A right to payment for cancelled, moved, or curtailed shifts
The third right requires an employer to pay a specified sum each time it cancels, moves, or curtails a “qualifying shift” at short notice. “Short notice” is defined by reference to a specified period, and the Act caps that trigger window at seven days; however, the exact period is yet to be determined.
The specified sum is, as yet, unknown (regulations cannot set a sum exceeding the pay the worker would have earned for the hours lost, and may vary the amount by how much notice was given). There are already exceptions (notably where the worker did not reasonably believe they would be needed), and further exceptions may be introduced by regulations.
Still open: the “short notice” period, the payment amount, the definition of the contracts caught, and the further exceptions are all to be dealt with in new regulations.
Contracting out
Importantly, parties can contract out of or modify these rights through a collective agreement. This is a route likely to matter in unionised sectors and one to watch as a practical escape valve.
Enforcement and remedies
A breach of each right is enforced through the employment tribunals. For the guaranteed-hours duty, a worker can complain that no offer was made, that a non-compliant offer was made, or – significantly – that the employer manipulated or limited the worker’s hours to escape or reduce the offer (the anti-avoidance ground). The Act also provides protection against automatic unfair dismissal and detriment connected to these rights, though the detailed remedies regime is still awaited
Takeaways
The reforms impose a real administrative and compliance burden for employers. Guaranteed-hours offers will need to be tracked and made after each reference period for every qualifying worker, with information notices and exception notices generated along the way. Shift scheduling will need to be managed against notice thresholds, and cancellation payments budgeted and administered. Anti-avoidance provisions mean that simply re-engineering hours to stay below a threshold carries litigation risk.
The direction of travel is clear: qualifying zero-hours and low-hours workers will gain rights to guaranteed hours, reasonable shift notice, and payment for short-notice changes. The detail that determines the points that matter for day-to-day compliance, and how burdensome and how protective the regime will actually be, remains unclear, with further consultations and regulations needed to fill the gaps.
Sensible preparation now means mapping which of the workforce would qualify under the anticipated thresholds, and auditing scheduling and cancellation practices. With the key laws not yet written, preparation will be a challenging task.
If you have questions or concerns about zero hours, please contact Keely Rushmore.
For further information please contact:
This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.