New restrictions on ‘exploitative’ zero-hours contracts
The Employment Rights Act 2025 stops short of banning zero-hours contracts, but new restrictions will be introduced.
The Government are consulting on the proposed changes to zero-hours contracts, and this consultation closes on the 25th of August 2026.
The restrictions will focus on a new right for zero, low or irregular hours workers to a ‘guaranteed hours offer’ which reflects the number of hours they have regularly worked over a specified period, provided their work history and hours meet certain conditions.
This new rule would ensure that employees’ contracts reflect an average number of hours that they regularly work over a reference period and aims to provide some stability for employees.
There is currently an open consultation which aims to set out the finer details of this new right, such as:
- A potential 12-week reference period for working out regular hours per week;
- A threshold for low hours, which is currently proposed at eight to 20 hours per week.
Workers will also have special legal protection against detriment/dismissal in connection with the terms of the guaranteed hours offer.
If you want to find out more and/or have your say on how these changes will form, visit Make Work Pay on the gov.uk website.
The changes are expected to come into effect sometime in 2027.
We can help you prepare ahead of 2027. Contact Solutions for HR today.
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