Employment Rights Act: Zero-hours and agency worker contracts

Zero-hours and low-hours contracts are getting a major overhaul. From 2027, flexibility will still exist, but it will need to work both ways. 

What’s changing 

Workers on zero-hours or low-hours contracts will gain the right to request a guaranteed hours contract that reflects the hours they regularly work. 

This will be based on a set reference period, expected to be around  12 weeks. The final definition of a low-hours worker and the reference period will be confirmed in future regulations. 

In addition: 

• Workers will have a right to  reasonable notice  of shifts and working hour changes 

• Workers will be entitled to  compensation  if shifts are cancelled or cut short at short notice 

• These rights will apply to  agency workers  as well as directly employed staff 

What this means for your business 

If you rely on variable hours to manage demand, this is a significant shift. 

Businesses will need to: 

• Track working patterns more closely 

• Justify ongoing zero-hours arrangements 

• Budget for compensation where shifts change at short notice 

• Review how agency workers are engaged and managed 

The days of long-term “permanently flexible” contracts without structure are numbered. 

What you should be doing now 

• Audit your use of zero-hours, low-hours and agency workers 

• Identify who is regularly working consistent hours 

• Review rostering and shift-planning practices 

• Build in clearer notice periods and contingency planning 

• Engage with agencies to understand how they will support compliance 

This change isn’t about removing flexibility altogether, but it does require better planning, better data and clearer communication. 

Getting on top of this now will protect your business, your budgets and your working relationships when the rules come into force.