Consultation launched on zero-hours contracts

The Government has issued a consultation paper on ending one-sided flexibility for zero hours and low hours workers. 

The consultation paper sets out more detail of how potential new rights will operate if the relevant parts of the Employment Rights Act 2025 are brought into force. The Government has indicated that this will be in 2027, but some commentators have expressed doubts about this, given the complexity of the proposals.

The consultation covers:

• The right to be offered guaranteed hours reflecting the hours worked during a reference period.

• The right to reasonable notice of shifts.

• The right to payment for shifts cancelled, curtailed or moved at short notice.

Workers will qualify for the guaranteed hours right away if they are on a zero-hours contract or a contract with guaranteed hours below an 'hours threshold' to be set in regulations. The government seeks views on what this threshold should be, with its preferred option being between 8 and 20 hours per week. It also proposes to set an 'initial reference period' of 12 weeks over which hours should be assessed, but is consulting about how reference periods should operate after the initial period, suggesting amongst other things that there should be a gap between periods to reduce the burden on business. 

The consultation paper also considers what will amount to 'reasonable' notice of shifts, what will amount to short (or very short) notice of shift changes or cancellations, and what payments an employer should be required to make where it gives short notice. 

Enforcement will mainly be the responsibility of employment tribunals, with a proposal for the Fair Work Agency to enforce the right to short notice payments using the Notices of Underpayment regime, with a power to impose penalties of up to £5000 per worker. The consultation also seeks views on whether employment agencies should be obliged to share information with hirers to support compliance with the new measures.

The proposed measure on zero-hours and low hours contracts are amongst the most complex and detailed in the Employment Rights Act 2025. The consultation paper provides employers who are concerned about their impact with the opportunity to express their views. 

You can respond to the consultation using the link above. If you would like to understand the proposals in more detail in order to respond directly, or if you have views that you would like the Withers employment team to express on your behalf, please don't hesitate to get in touch.

The consultation is open until 11.59pm on 25 August 2026.