Zero-Hour Contracts: A New Era of Workplace Fairness in the UK

In recent years, zero-hour contracts have sparked intense debate in the UK. While these contracts offer flexibility for both employers and workers, they also introduce significant financial and job security concerns. Recognising the risks posed by one-sided flexibility, the UK government is implementing new legislation to strike a fair balance—ensuring workers have stability while maintaining the adaptability some industries require.

The Current Situation

More than a million people in the UK work under zero-hour contracts. These agreements, which do not guarantee a minimum number of working hours, can be beneficial for those seeking flexible employment—such as students and caregivers—but often leave workers vulnerable to unpredictable incomes and financial insecurity.

Under existing rules, employees working regular hours may still lack assurance about future shifts. Employers can modify schedules or cancel shifts at the last minute, placing much of the financial uncertainty on workers. This unpredictability impacts both job stability and overall well-being.

Government’s Commitment

To address these challenges, the government has committed to eliminating one-sided flexibility, ensuring that all jobs provide a foundational level of security and predictability. The goal is to help employees better plan their finances and personal lives while encouraging employers to improve their scheduling practices.

The proposed measures aim to establish:

- Guaranteed working hours for eligible employees.

- Reasonable notice requirements for schedule changes.

- Compensation for cancelled, shortened, or rescheduled shifts.

These provisions will give workers more control over their schedules, making it easier to plan for childcare, transportation, and other personal responsibilities.

Key Changes Under the New Law

1. Guaranteed Hours – Employers must offer guaranteed work hours based on an employee's regular shifts over a reference period (likely 12 weeks). Workers may decline guaranteed hours if they prefer to remain on a zero-hour contract.

2. Advance Notice for Schedule Changes – Employers must provide reasonable notice for any shift changes. If proper notice is not given, employees can file complaints with a tribunal, which will determine whether the notice period was fair.

3. Compensation for Last-Minute Changes – Employers must compensate workers when shifts are canceled, rescheduled, or shortened with short notice, reducing financial risk for employees.

Considerations for Agency Workers

Applying these new protections to agency workers is complex due to their unique employment relationships. To maintain flexibility while offering stability, regulations will specify whether clients or agencies bear responsibility for guaranteed hours and notice requirements. Agencies must also compensate workers for last-minute changes but may recover costs from clients in certain situations.

Further details, including specific implementation guidelines, will be addressed in future government consultations.

What Happens Next?

The government will consult with employers, trade unions, and industry leaders to refine these policies and ensure they work effectively across various sectors. Particular attention will be given to industries where highly variable scheduling is unavoidable.

Addressing Common Concerns

Many workers benefit from zero-hour contracts and prefer to retain their flexibility. The new policy allows employees to decline guaranteed hours if they wish. Additionally, industries requiring rapid adjustments to scheduling—such as hospitality or healthcare—will be considered during policy implementation.

Ultimately, these changes seek to create a fairer labour market, ensuring workers have more control over their employment while preserving necessary flexibility. With the right balance, both employees and businesses can thrive under a system that works for everyone.

The government's approach reflects a shift toward fairness and security, while still acknowledging the need for adaptability in certain industries. As consultations progress, further details will emerge, shaping the future of workplace regulation in the UK.