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.

UK-wide
Guide summary

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
On this page
UK-wide

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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