Guide
Zero-hours contracts: employer obligations
How to comply with zero-hours contract rules: guaranteed hours offers, shift notice requirements, and compensation for cancelled shifts. Includes compliance checklist and policy templates.
The Employment Rights Act 2025 regulates zero-hours and low-hours contracts. The rules end 'exploitative' practices and give workers more security, requiring employers to offer guaranteed hours and provide reasonable notice of shifts.
Note: Some implementation details including reference periods and notice requirements are set in secondary legislation. This guide covers the confirmed provisions - monitor gov.uk for any updates to regulations.
What employers must do
- Audit current contracts: Identify all zero-hours and low-hours contracts
- Track hours: Record actual hours worked vs contracted hours
- Review scheduling: Assess current shift scheduling practices
- Make guaranteed hours offers: Offer guaranteed hours based on actual working patterns
- Update policies: Maintain policies for guaranteed hours and shift notice
High-risk sectors
These sectors typically have high use of zero-hours contracts and are most affected:
- Retail
- Customer-facing roles with variable footfall
- Hospitality
- Pubs, restaurants, hotels with seasonal variation
- Care sector
- Domiciliary care with client-dependent hours
- Education
- Supply teachers, casual lecturers
- Events/entertainment
- Seasonal and event-based work
- Logistics/warehousing
- Peak period workers
Compliance considerations
Guaranteed hours offers
- You must proactively offer - workers do not need to request
- Offer must reflect actual working pattern over reference period
- Worker can accept or decline the offer
- Cannot dismiss or treat less favourably for accepting
Shift notice
- Provide reasonable notice of shifts
- Compensate for short-notice cancellations
- Keep records of notices given