Rebecca Lister from Whitehead Monckton’s Employment team explores the Government’s consultation on zero-hours and low-hours contracts; an initiative that could reshape the UK’s flexible work landscape.
The Government has launched a consultation on proposed measures aimed at addressing what it describes as ‘one-sided flexibility’ in zero-hours and low-hours contracts. These proposals will be implemented through regulations made under the Employment Rights Act 2025 (ERA 2025) and, if introduced, will represent a significant shift in how these types of flexible working arrangements operate.
At the heart of the proposed reforms are new rights for qualifying workers, including the right to be offered guaranteed hours where they have worked regular hours over a defined period, greater certainty around shift patterns, and compensation for shifts that are cancelled, shortened or changed at short notice.
The consultation, which runs until 25 August 2026, seeks views from employers and stakeholders on how these rights should operate in practice.
To qualify for the right to guaranteed hours, a worker must either be engaged on a zero-hours contract or have contracted hours that fall below a yet-to-be-defined threshold. The Government is currently consulting on where this threshold should sit, with proposals ranging from eight to 48 hours per week. Its preferred range is between eight and 20 hours per week.
Guaranteed hours offers would be calculated by reference to hours worked over a defined ‘reference period’. The Government’s initial preference is a 12-week period, although alternative options of 26 and 52 weeks are also under consideration. The consultation further seeks views on the length of subsequent reference periods and whether these should run consecutively without interruption.
Eligibility for a guaranteed hours offer will also depend on the regularity of the worker’s working pattern during the reference period. Two possible approaches are proposed:
There would be no requirement for employers to make a guaranteed hours offer to individuals engaged on a fixed-term contract that is shorter than the reference period, provided the limited term is reasonable. Under the Employment Rights Act 2025, a limited term will be considered reasonable where the worker is engaged for a specific task, until a particular event occurs, or to meet another defined temporary need. The consultation invites further examples of temporary needs that do not relate to a specific task or event.
The Government is also consulting on how guaranteed hours should be calculated (mean or median), whether employers should retain flexibility in how hours are structured (e.g. weekly or monthly), and whether a small adjustment margin should be permitted.
Additionally, views are sought on potential exemptions, including whether certain categories of workers or employers should be excluded in defined circumstances.
The consultation also proposes new requirements for employers to provide workers with reasonable notice of shifts and asks employers how much notice should be presumed as reasonable.
Options under consideration include:
The Government is also seeking feedback on when longer notice should be expected (for example, where workers are contractually obliged to accept shifts) and when shorter notice may be justified, such as in cases of unexpected absence or last-minute cover requirements.
Under the ERA 2025, workers will be entitled to compensation where shifts are cancelled, moved or curtailed at short notice.
The consultation explores several key questions, including:
The consultation also considers whether exceptions should apply in limited circumstances, such as extreme weather or infrastructure failures, provided the employer issues an explanation notice.
Workers will be able to enforce these rights through employment tribunals. However, the Government is also considering a role for the Fair Work Agency (FWA) in enforcing rights to short-notice payments.
Under the proposed model, the FWA could:
The proposed penalty is 50% of the arrears owed, subject to a minimum of £100 and a maximum of £5,000 per worker.
While the proposals are still at consultation stage, they signal a clear direction of travel towards reduced flexibility in zero-hours arrangements and increased predictability for workers.
Employers who rely on flexible or variable-hours workers should start to consider:
While the consultation remains open until August 2026, its direction is clear: flexibility must work for both sides. Taking proactive steps now will help businesses adapt smoothly to the forthcoming changes and demonstrate a commitment to fair, transparent working practices.
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