In response to ongoing concerns about job security and fairness for workers, the Government is considering significant changes to zero-hour contracts. To begin this process, a consultation has been launched to explore how best to balance flexibility for employers with greater predictability for employees.
The Government has launched a consultation on ‘ending one-sided flexibility’, looking at the details of reforms from the Employment Rights Act 2025 relating to zero-hours contracts, reasonable notice of shifts, and pay for cancelled shifts.
Business secretary Peter Kyle and Kate Dearden, the employment rights minister, said they recognise the flexibility zero hours contracts can provide, but that the measures will ensure all jobs provide a ‘baseline level of security and predictability’.
They said at present: ‘A worker on a zero-hours contract could be working 40 hours a week for the same employer for years and still not have any contractual guarantee of how many hours they will get the next day, let alone the next month’.
‘Workers may only be told in the morning that there is work for them in the afternoon, or turn up for a shift only to be told that there is no work, and so no pay, for them at all. This cannot be right.’
The consultation covers:
- initial and subsequent reference periods used to calculate typical hours;
- the hours threshold where the rules begin to apply; how seasonal work is treated;
- and how guaranteed hours will be calculated and offered by employers. It covers both directly engaged workers and agency workers.
It also explores what is ‘reasonable’ notice when shifts are cancelled or changed, and how much pay the worker should receive if not enough notice is given.
For some areas of work, these potential changes will have a considerable impact. The finer details may ultimately provide employers with additional flexibility to manage staffing levels in industries with notoriously unpredictable workloads, such as the hospitality sector.
We understand that changes to employment law can create uncertainty, but these reforms are intended to offer greater security and clarity for both employers and workers. We are here to support you through these developments and will continue to keep you updated.
If you have any queries or require further information, please contact Kelly Ladd at kelly.ladd@thomas-carroll.co.uk.
