New Rights for Zero-Hours and Low-Hours Workers: How Employers Can Prepare for Upcoming Changes

Businesses that rely on flexible staffing arrangements could soon face significant changes to how they engage and manage workers. The government’s proposed reforms to zero-hours and low-hours contracts are designed to provide greater certainty around working hours, shift scheduling and income stability for eligible workers.

Although many of the finer details are still subject to consultation, the direction of travel is becoming increasingly clear. Employers may need to rethink workforce planning, review contractual arrangements and assess whether existing scheduling practices would remain effective under the new framework.

Understanding the potential impact now can help organisations prepare for future obligations, reduce compliance risks and avoid being caught off guard when the final regulations are introduced.

Why These Reforms Matter

Flexible working arrangements have become an important part of workforce management across sectors such as hospitality, retail, healthcare and logistics. However, concerns around income security and unpredictable working patterns have prompted the government to strengthen protections for workers whose hours fluctuate.

The proposed reforms aim to provide greater certainty for workers while preserving some flexibility for employers. Businesses that regularly rely on variable hours may therefore need to review how they engage, schedule and manage their workforce.

Guaranteed Hours: What Could Change? 

One of the most significant proposals is the introduction of a right for eligible workers to be offered guaranteed hours based on their actual working patterns.

The government is consulting on where the eligibility threshold should be set, with current options ranging from 8 to 20 contracted hours per week.

A worker’s entitlement would be assessed using a reference period, with the government’s preferred option being 12 weeks. Longer periods of up to 52 weeks are also under consideration.

Key questions still being considered include:

• How consistently workers must exceed their contracted hours before becoming eligible.

• Whether guaranteed hours should be calculated using average or median hours worked.

• Whether employers should have flexibility in how those hours are allocated.

• Which temporary or project-specific contracts may be exempt.

For employers, this could mean that workers who regularly work additional shifts may become entitled to more predictable contractual hours in future.

Workforce Planning Could Become More Important

The proposed guaranteed-hours regime places greater emphasis on accurate workforce forecasting.

Employers may wish to start reviewing:

• Which workers regularly exceed their contracted hours.
• Whether current contracts accurately reflect working arrangements.
• Seasonal fluctuations in staffing requirements.
• Areas where overtime or additional shifts are used routinely.

Identifying these trends now may help businesses understand where future obligations are most likely to arise.

New Expectations Around Shift Notice

The consultation also proposes new rights relating to shift scheduling.

Rather than imposing a fixed notice period for every employer, the government intends to introduce a presumption of what constitutes “reasonable notice”, while allowing flexibility where circumstances justify shorter notice periods.

Current proposals include notice periods ranging from one to four weeks for directly engaged workers, with shorter requirements potentially applying to agency workers.

Employers should be aware that scheduling practices which currently rely on frequent short-notice shift allocations may come under greater scrutiny once the new framework is introduced.

Compensation for Last-Minute Changes

Another important area of reform concerns compensation where shifts are cancelled, shortened or moved with insufficient notice.

Although the final model has not yet been determined, the consultation seeks views on:

• What should qualify as short notice.
• Whether a separate category of very short notice should apply.
• How compensation should be calculated.
• Whether exceptions should exist for events outside an employer’s control.

Current proposals suggest compensation could range between 10% and 80% of expected earnings, depending on the circumstances and the amount of notice provided.

For organisations that frequently adjust staffing levels at short notice, this could introduce additional cost considerations alongside operational challenges.

Enforcement and Penalties

Workers will be able to pursue claims through employment tribunals if they believe their rights have been breached. The government is also considering giving enforcement powers to the Fair Work Agency. Under the preferred approach, the agency would be able to require employers to repay underpayments and issue financial penalties.

Proposed penalties would be equivalent to 50% of any arrears owed, subject to a minimum penalty of £100 and a maximum penalty of £5,000 per worker.

Steps Employers Can Take Before 2027

Although the new rights are not expected to come into force until 2027, employers may benefit from reviewing their current arrangements now.

Areas to consider include:

The consultation closes on 25 August 2026, giving employers an opportunity to help shape the practical details of these reforms before the final regulations are introduced.

While there is still some uncertainty around the final rules, the direction of travel is clear. Employers that rely on flexible staffing arrangements should begin assessing their potential exposure now and consider whether any changes to contracts, workforce planning or scheduling practices may be required in the future.