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.
If you use zero-hours contracts, you must offer guaranteed hours matching workers' actual shifts and give reasonable notice. You must also pay compensation if shifts are cancelled late. Keep records of hours worked and offers made.
- Offer guaranteed hours matching actual working patterns
- Keep records of hours worked for all zero-hours staff
- Give clear notice when scheduling shifts
- Pay workers if you cancel shifts at short notice
- Do not pressure workers to decline guaranteed hours
- Apply rules to agency workers from March 2025
- Update contracts when workers accept guaranteed hours
- Check gov.uk for exact notice periods and compensation rates
- Special rules for retail, hospitality and care sectors
- Fair treatment required for workers accepting guaranteed hours
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