Zero-Hour Contract Changes 2027: What Employers Need to Know

Significant zero-hour contract changes are coming under the Employment Rights Act 2025, introducing greater predictability around working hours, shifts and pay when shifts are changed or cancelled. The Government’s consultation has closed, but the reforms are not yet in force and are expected to be implemented during 2027. 

For employers, the zero-hour contract reforms 2027 could affect workforce planning, contracts, rotas and costs. The new rights will also cover workers on contracts guaranteeing only a low number of hours, with the exact threshold still to be confirmed. 

There is already concern among employers about the potential impact, CIPD research found that 65% of employers using zero-hours contracts expect their HR and management costs to increase as a result of proposed reforms, while 31% expect to make redundancies and 33% expect to increase their use of temporary, casual or self-employed staff.

With the changes to zero-hours contracts expected in 2027, employers should start considering what the reforms could mean for their current workforce arrangements and how they can prepare.

What are the zero-hour contract changes?

The Employment Rights Act 2025 introduces three key rights for eligible workers on zero-hours and similar contracts: a right to guaranteed hours, a right to reasonable notice of shifts and changes to shifts, and a right to payment when shifts are cancelled, moved or shortened at short notice. The detailed rules are still being developed through regulations. 

A right to guaranteed hours

Eligible workers could have the right to be offered a contract reflecting the hours they regularly work during a reference period. The government has indicated a preference for a 12-week reference period, although this is still subject to confirmation. 

Once the provisions come into force, the responsibility will be on employers to make a guaranteed-hours offer to qualifying workers based on the hours worked during the relevant reference period. Workers will not need to request and offer themselves.

The exact eligibility criteria and how guaranteed hours will be calculated are also yet to be confirmed, so employers should not assume every zero-hours worker will automatically be entitled to fixed hours. 

A right to reasonable notice of shifts

The reforms will introduce a right to reasonable notice of shifts and changes to shifts, giving eligible workers greater certainty over when they will be expected to work. 

There is not yet a confirmed zero-hour contract notice period, as the legislation leaves the detailed timeframe and what is considered ‘reasonable’ to regulations. Employers should therefore avoid assuming a specific notice period, such as 7 or 14 days, will apply.

Payment for cancelled, moved or shortened shifts

Eligible workers will also have the right to payment where a qualifying shift is cancelled, moved or reduced at short notice. The exact payment, notice thresholds and calculation method are still to be confirmed. 

In practice,  this could cover situations such as:

• Cancelled shifts: a worker is told they no longer need to attend a shift they had agreed to work.
• Moved shifts: the start time or end time of an agreed shift is changed at short notice.
• Shortened shifts: a worker is sent home earlier than planned, reducing the number of hours they work.

The amount paid will be set through regulations and is expected to be linked to the pay the worker would have received for the affected shift. The rules will determine exactly when the payment applies and how it will be calculated.

What about agency workers?

The new framework will also extend to qualifying agency workers, although the requirements are expected to work differently because of the relationship between the worker, agency and end hire. 

Further detail on how the rights will apply to agency workers is expected to be set out in regulations. Agencies and businesses that regularly use agency workers should therefore keep up to date with the requirements as they are confirmed.

When will the zero-hour contract reforms come into force?

The zero-hour contract reforms are not yet in force. The Government’s consultation on the proposed changes closed on 25 August 2026, and the final details of the new rights are still being developed. 

The reforms are expected to come into force during 2027, although the exact implementation date has not yet been confirmed. Employers should therefore keep up to date with further Government guidance and begin considering how the changes to zero-hour contracts could affect their business.

What do the changes mean for employers?

The changes to zero-hour contracts could effect how businesses plan their workforce, allocate hours and manage shifts. Employers using zero-hours or low-hours workers should review their current arrangements and consider where changes may be needed. 

Workforce and shift planning

Employers should review the hours their zero-hours and low-hours workers regularly work, as accurate record may be important when determining eligibility for guaranteed hours. Businesses may also need to plan shifts further in advance and reduce their reliance on last-minute changes. 

Managing rotas and giving notice

The new right to reasonable notice of shifts could require employers to review how rotas are created and communicated. Clear processes for communicating shifts, changes and cancellations will help employers meet the new requirements and maintain accurate records. 

Potential additional costs

The reforms could increase costs for some employers through payments for short-notice shift changes, as well as additional HR and management time. CIPD research found that 65% of employers using zero-hours contracts expect their HR and management costs to increase as a result of the reforms.

Reviewing current working patterns

Now is a good time to start reviewing how zero-hours and low-hours contracts are currently being used, including the hours the workers actually work and how often shifts change. Where work is regular and predictable, businesses may also need to consider whether alternative arrangements, such as permanent part-time contracts or more appropriate.

How should employers prepare?

Although final details of zero-hour contract reforms are still being developed, employers can start preparing now. Reviewing current working arrangements and identifying where changes may be needed will make it easier to respond when the new rules come into force.

Conduct a workforce audit

Review which workers are currently working under zero-hours or low-hours contracts and look at the hours they actually work. Identifying regular working patterns, average hours and seasonal variations can help employers understand who could potentially be affected by the new rights. 

Review contracts and policies

Review existing zero-hours and low-hours contracts, particularly provisions relating to guaranteed hours, shift arrangements and exclusivity. Employers that use agency workers should also consider their current arrangements and how the reforms could affect the way agency staff are engaged and managed. 

Relevant policies and procedures should also be reviewed to identify where updates may be needed once the final requirements are confirmed.

Review shift and rota processes

Consider how shifts are currently planned, communicated and changed. If rotas are regularly changed or cancelled at short notice, employers should consider how their processes may need to adapt to the new requirements around reasonable notice and payment for affected shifts.

Consider costs and staffing requirements

Assess the potential financial impact and operational impact of the reforms. This could include additional payments, HR and management time, and whether changes to staffing arrangements or workforce planning may be required.

Prepare managers

Make sure managers understand the proposed changes and know how they may affect day-to-day workforce management. Early preparation can help ensure consistent approaches to allocating hours, managing rotas and communicating changes.

Keep up to date

The detailed rules around the reforms are still being developed, so employers should continue to monitor Government guidance and the final regulations. Once the requirements are confirmed, contracts, policies and processes can be updated accordingly.  

Are zero-hours contracts being banned?

Zero-hours contracts are not being banned, however the upcoming reforms are intended to give workers greater predictability and security around their working hours, while placing additional responsibility on employers. 

Zero-hour contracts will still be permitted, but employers will need to comply with new rights around guaranteed hours, reasonable notice of shifts and payment for shifts cancelled, changed or reduced at short notice. These measures are intended to provide greater protection against the uncertainty associated with one-sided flexibility.

Workers who value the flexibility of a zero-hours arrangement will be able to turn down a guaranteed hours offer and remain on their existing arrangement. This means the reforms will not automatically move workers onto fixed or guaranteed hours, allowing those who prefer zero-hours working to retain that flexibility.

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