Quick take: The Employment Rights Act 2025 received Royal Assent in December 2025. Among its most significant provisions are new rights for workers on zero-hours and low-hours contracts, including the right to guaranteed hours based on actual working patterns.

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The Problem

A zero-hours contract does not guarantee a minimum number of working hours. According to the Office for National Statistics, approximately 1.1 million people in the UK were on zero-hours contracts in their main job as of late 2024. While they offer flexibility for some, they have been criticised for creating income insecurity and giving employers disproportionate control.

1. Right to Guaranteed Hours

The Act introduces a right for qualifying workers to be offered a contract reflecting the hours they regularly work. After a reference period (expected to be 12 weeks, subject to secondary legislation), if a worker has been consistently working more hours than their contracted minimum, the employer must offer a contract reflecting those actual hours.

This does not ban zero-hours contracts outright. Workers who genuinely prefer flexible arrangements can remain on them. But employers can no longer keep workers on zero-hours contracts when the work pattern is effectively regular.

2. Reasonable Notice of Shifts

Employers will be required to provide reasonable notice of shift schedules and changes. The exact notice period will be set out in secondary legislation, but the aim is to prevent last-minute schedule changes that disrupt workers' ability to plan childcare, travel, or second jobs.

3. Compensation for Short-Notice Cancellation

If an employer cancels a shift at short notice, the worker will be entitled to compensation. The details are being defined in regulations, but the principle is clear: workers should not bear the full financial cost of last-minute cancellations by employers.

When Do These Changes Take Effect

The Act received Royal Assent in December 2025, but most provisions will come into force through commencement orders and secondary legislation. The government has indicated that the zero-hours contract provisions are likely to be implemented in 2026 or early 2027. The detailed rules are still being developed through consultation.

What This Means in Practice

• If you are on a zero-hours contract and regularly work consistent hours, you may become entitled to a guaranteed-hours contract once the regulations come into force

• If you are an employer using zero-hours contracts, it would be prudent to review your current arrangements now and consider how the new requirements will affect workforce planning

• If you are a freelancer or agency worker, the position is more nuanced--some provisions may apply differently depending on your employment status

FAQ

Are zero-hours contracts being banned?

No. The Act does not ban them. It gives workers who regularly work set hours the right to a contract reflecting those hours. Workers who prefer zero-hours arrangements can continue with them.

What if my employer refuses to offer guaranteed hours?

Once the relevant provisions are in force, workers will have the right to bring a claim. The enforcement mechanisms are still being finalised through secondary legislation. Check GOV.UK for updates on implementation timelines.

Disclaimer: This article is general information, not financial, tax, or legal advice.