UK-wide

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.

Guide summary

From 2027, you must offer guaranteed hours to zero-hours and low-hours workers based on their actual working pattern. You must also give reasonable notice of shifts and pay compensation when shifts are cancelled, moved or shortened at short notice. Track hours, update contracts and do not pressure workers to refuse guaranteed hours.

  • Offer guaranteed hours matching workers' actual average hours
  • Give reasonable notice of shifts before they start
  • Pay compensation when shifts are cancelled at short notice
  • Track hours worked for all zero-hours and low-hours workers
  • Proactively make guaranteed hours offers – workers do not need to ask
  • Record whether workers accept or decline guaranteed hours
  • Do not reduce hours to avoid the obligation to offer guaranteed hours
  • Do not dismiss or treat workers less favourably for accepting guaranteed hours
  • Update contracts and shift scheduling policies for compliance
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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

  1. Audit current contracts: Identify all zero-hours and low-hours contracts
  2. Track hours: Record actual hours worked vs contracted hours
  3. Review scheduling: Assess current shift scheduling practices
  4. Make guaranteed hours offers: Offer guaranteed hours based on actual working patterns
  5. 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