Under the Employment Rights Act 2025, the Government plans to provide greater protections for zero hours and low hours workers. The law requires employers to offer zero hours and low hours workers:
• contracts with guaranteed hours; and
• to provide reasonable notice of shifts, shift changes and cancellations.
A low “hours” contract is one which specifies a minimum number of guaranteed hours not exceeding a threshold (still to be determined).
A Government consultation on the details is expected to be published early in 2026.
Guaranteed hours
• Employers will have to offer zero hours and low hours workers a contract with guaranteed hours, reflecting the number of hours they regularly worked during a reference period.
• Workers will not be obliged to accept the offer, so they will be able to remain on zero hours or low hours contracts if they prefer.
This will be a continuing obligation, with employers obliged to offer a guaranteed hours contract after the end of each reference period (expected to be 12 weeks) even where a worker has previously refused the offer. Where a worker accepts a guaranteed hours contract but their regular hours in a reference period exceed those guaranteed hours, their employer will have to offer a further guaranteed hours contract reflecting those increased hours. The obligation will continue until the worker’s hours exceed the low hours threshold (so that they are no longer a ‘low hours’ worker).
Fixed term hours
Employers can offer guaranteed hours on a fixed-term basis if they can reasonably show a genuine, temporary need, such as for:
• a specific time limited task (ie: a specific project or event)
• covering for another employee, or
• fulfilling a defined seasonal demand, with the contract ending when that specific need ceases.
Note the employer must reasonably believe use of a fixed-term contract is appropriate, not just to avoid permanent obligations.
What does this mean for workers and employers?
• Workers: don’t have to accept fixed-term offers and can remain on existing arrangements.
• Employers: must offer guaranteed hours reflecting regular work after each reference period (likely 12 weeks).
These rules aim to provide more security for zero-hours workers by requiring employers to guarantee hours reflecting actual work, while still allowing for genuinely temporary staffing needs.
Failure to offer guaranteed hours
Where an employer fails to comply with its obligations regarding guaranteed hours contracts, a worker will be able to bring a tribunal claim and be awarded compensation of such amount as the tribunal considers just and equitable, subject to a cap which will be specified in regulations.
Reasonable notice of shifts
Employers will have to give workers reasonable notice of:
• shifts (specifying the date, start time, end time and number of hours to be worked), and
• shift changes and cancellations.
The length of this ‘reasonable’ notice is not yet specified and will be subject to consultation.
Where reasonable notice is not given, workers will be able to bring tribunal claims and be awarded compensation, again of such amount as the tribunal considers just and equitable, subject to a cap which will be specified in regulations.
Workers will also be entitled to payment for:
• shifts cancelled,
• moved or
• curtailed at short notice.
The amount of the payment will be specified in regulations but will be unlikely to exceed the amount the worker would otherwise have received for the shift. Workers will be able to bring a tribunal claim if the employer fails to pay.
Other tribunal claims
It will be automatically unfair to dismiss an employee for reasons relating to these rights, including:
• for accepting/rejecting a guaranteed hours offer,
• in order to avoid having to offer them guaranteed hours or
• because the worker believes that they are entitled to a guaranteed hours offer.
Workers will also have the right not to be subjected to a detriment in various circumstances including:
• because they accepted/rejected guaranteed hours,
• because they declined to work a shift as they reasonably believed the employer had not given them reasonable notice, or
• because they have brought a tribunal claim in good faith to enforce their rights.
Action points
• Start auditing your workforce to identify how many workers you engage on zero or low hours who could potentially be entitled to the new rights.
• Identify seasonal fluctuations in demand for work to identify where fixed-term contracts may be more appropriate.
• Review systems for managing shifts and shift changes and consider what changes may be required.
For advice email nicola.goodridge@goodhr.co.uk or call +44 7917 878384
