Zero hours contracts are arrangements under which an employer is not obliged to provide any minimum number of working hours, and the individual is generally not obliged to accept the work offered. They are used widely in sectors with fluctuating demand, such as hospitality, retail, care, and events, where the volume of work varies from week to week. They remain lawful, and used properly they are a legitimate way to manage genuinely variable staffing, but the rules surrounding them are set to change significantly.
Advising employers on how they engage their staff, and on which contractual model actually fits the way the work is done, is everyday work for us at GAP HR. We have supported small, owner-managed businesses since 2003, many of them in the very sectors where zero hours working is common, and getting the contract type right at the outset prevents a great deal of difficulty later on.
Call us now on 01491 598 600 or Click Here to Make An Enquiry and we will be delighted to help you.
What Is A Zero Hours Contract?
At its simplest, it is a contract under which the employee is not guaranteed hours. The employer offers work as and when it is available, and the individual works the shifts they accept. There is usually no commitment on either side, which is where the flexibility comes from.
The label covers a range of arrangements, and the individual may be an employee or a worker depending on how the relationship operates in practice. That distinction matters, because it determines which rights apply. Whatever the paperwork says, a tribunal will look at the reality of the working relationship if the status is ever disputed.
What Rights Do Zero Hours Staff Have?
Zero hours staff are entitled to the national minimum wage for the hours they work, to paid holiday that accrues on the hours worked, and to rest breaks. They cannot lawfully be required to work exclusively for one employer, as exclusivity clauses in zero hours contracts are unenforceable.
Where the individual qualifies as an employee, they can benefit from a wider set of rights, including protection from unfair dismissal once the qualifying period is met and entitlement to statutory notice. Everyone, regardless of status, is protected against discrimination.
When Are Zero Hours Contracts Appropriate?
Zero hours contracts can be an appropriate way in which to engage staff where the work is genuinely unpredictable. These situations may include covering seasonal peaks, staffing one-off events, providing cover for absence, or meeting demand that rises and falls without a settled pattern. For a business that cannot forecast its staffing needs with any certainty, they offer a lawful way to match labour to demand.
The difficulty arises when they are used for work that is not genuinely variable. Where someone on a zero hours contract in fact works the same regular hours week after week, the arrangement starts to look like a way of denying the security their working pattern ought to attract. That is precisely the situation the incoming reforms are designed to address.
How Will The Employment Rights Act 2025 Change Zero Hours Contracts?
The Employment Rights Act 2025 introduces the most significant reform of zero hours working in years. The relevant provisions are not yet in force and are expected during 2027, with much of the detail still to be set by regulations following consultation. Zero hours contracts are not being banned outright. The aim is to end what the Government describes as one-sided flexibility, while preserving genuine flexibility where both sides want it.
Three main rights are being created. Qualifying zero and low hours workers will be entitled to be offered guaranteed hours reflecting the hours they have regularly worked over a reference period, expected to be around 12 weeks. They will be entitled to reasonable notice of shifts and of any changes to them, and to payment where a shift is cancelled, moved, or cut short at short notice. Similar protections are being extended to agency workers so the rules cannot be sidestepped by using temporary labour.
What Should Employers Do To Prepare?
The single most useful step is to understand your own workforce. This involves auditing who is on zero hours arrangements, and looking at what hours they have actually worked over rolling 12-week periods. This simple exercise will show you which individuals are likely to qualify for a guaranteed hours offer once the rules commence, and where your genuine flexibility lies.
You should also review your scheduling and record-keeping. Reasonable notice of shifts and payment for late cancellations will require reliable rota systems and accurate records, so the businesses that tighten those practices now will adapt far more smoothly than those that wait for the regulations to come into force.
Are Zero Hours Contracts Still Worth Using?
Zero hours contracts can still be a valuable resource where the work is genuinely variable. The reforms target misuse, not the model itself, and a business with truly unpredictable demand will still be able to engage staff flexibly. What will change is that regular, settled patterns of work will need to be recognised for what they are.
For many employers, the coming changes are a prompt to check that each contract type actually matches the work being done, which is good practice regardless of the law.
How Can GAP HR Help With Zero Hours Contracts?
We can review how you currently engage your staff, confirm whether zero hours is the right model for each role, and prepare you for the guaranteed hours and shift notice rules ahead. Where a different contract type would serve you better, we will tell you and put it in place.
Call us now on 01491 598 600 or Click Here to Make An Enquiry and we will be delighted to help you.
