Zero-hour contracts give the employer total control over an employee’s hours – they have been seen as exploitative towards employees for some time.
While these contracts are lawful, they come with a significant lack of job security: workers aren’t guaranteed hours, and they have no set pattern of work. The only limitation? Employers cannot prevent employees from working elsewhere.
What does the Bill propose?
1. Guaranteed Hours
The Bill proposes to introduce a ground breaking right to ‘guaranteed hours’—which will make zero-hours contracts far less appealing to employers. Here’s how it works:
- Guaranteed hours after a reference period: After a designated “reference period” – which is not yet defined, but expected to be 12 weeks – employers will be required to offer guaranteed hours to an employee if their working hours exceed the minimum number set out in their contract.
- Who will be affected?: This requirement isn’t just limited to those on zero-hours contracts. It will also apply to workers on low-hour contracts (those with minimal guaranteed hours).
- Details still to come: The exact process for how these guaranteed hour offers will need to be offered is still unclear. Will it be in writing? How long will the offer remain open? These details remain uncertain, but the change will offer greater job security and predictability for workers and employees.
2. Right to reasonable notice
The Bill also proposes to introduce the right to reasonable notice for shifts, including the date, time, and number of hours expected to an employee. This applies to individuals on zero-hour contracts, workers with minimum hours and those without a set work pattern.
If an employer cancels a shift at short notice, they’ll also be required to pay the worker for the hours lost. This will provide better protection for workers who often face last-minute changes to their schedules.
Are there any exceptions?
Yes. Here’s what we know so far:
Employers may not need to offer guaranteed hours in situations involving short-term need or fixed-term contracts. Additionally, the offer will no longer apply if the worker resigns or is dismissed during the qualifying period.
When will these changes come into effect?
The House of Commons and House of Lords are currently not in agreement on the above and the House of Lords are pushing for a few tweaks and amendments to the rules, particularly the inclusion of an opt-out for guaranteed hours and considering the unique challenges of seasonal work.
These changes were initially proposed to come into force in 2027, but both parties will need to come to an agreement before they can consult on the specifics and finalise dates. We will be keeping a close eye on the development of the Bill and updating our content throughout.
Stay up to date
Track the latest developments and estimated timeframes on our Employment Rights Bill Dashboard.
