On 2 June 2025, the Government issued a consultation paper on the regulations needed to implement the upcoming zero hours measures in the Employment Rights Act 2025.
The consultation paper seeks input on three key areas, these are:
- guaranteed hours, where an employer is required to offer a worker hours that reflect the hours worked during a reference period;
- reasonable notice of shifts and changes to shifts; and
- payment for shifts cancelled, curtailed or moved at short notice.
We know these changes will affect many of our clients and contacts and so we encourage you to review and respond to the consultation (link here) to ensure your views are heard.
Guaranteed Hours
The key aim of the new measures is to end ‘one-sided flexibility’, with a central proposal being a right to guaranteed hours. Workers on zero hours contracts, or with hours below a certain threshold (which is likely to be between 8 and 20 hours per week) will qualify if they regularly work more than their contracted hours during a ‘reference period’. The preferred initial reference period is 12 weeks. Those who qualify can accept an offer reflecting their actual pattern or decline and stay working as they are.
Although, this may not apply to seasonal and temporary workers. Employers are not required to make a guaranteed hours offer where a worker is on a limited-term contract shorter than the reference period, provided that contract was reasonable.
However, agency workers are likely to be covered, and hirers may be liable for guaranteed hours offers. Although, the consultation is exploring whether responsibility can be shifted to agencies or intermediaries.
Reasonable notice of shifts
Another key measure is that eligible workers must be given reasonable notice of shifts and changes to shifts. The Government’s intention behind this is to give workers greater certainty about when they will be working and the number of hours they will be working. The regulations will set a presumed ‘reasonable notice period’ as a starting point for the Tribunal. The consultation is currently considering one to four weeks for directly engaged workers, and up to five days to four weeks for agency workers. Employers should note that the consultation paper provides that failure to give reasonable notice will allow the worker to bring a tribunal claim for the loss suffered.
Payment for shifts cancelled, moved or curtailed at short notice
It is also proposed that workers receive a payment for cancelled shifts, as well as shifts that have been moved or curtailed at short notice. For these purposes, ‘move’ means delaying or bringing forward a shift (or part of a shift). ‘Short notice’ is subject to the consultation, although the Government’s proposals are for this to be between one and seven days.
The Government is also considering a separate ‘very short notice’ tier, which would carry a higher payment due to the worker. Where the worker initiates the change, no payment will be due.
Enforcement
The Government is proposing that the Fair Work Agency (FWA) enforce short notice payments through the Notice of Underpayment regime (as well as through Employment Tribunals). Although, guaranteed hours and reasonable notice enforcement would stay solely with the Employment Tribunal.
The FWA’s preferred penalty for short notice payments is 50% of arrears, with a minimum of £100 per case and a maximum of £5,000 per worker. This is lower than the standard Notice of Underpayment regime to reflect that this is a new obligation for employers.
Employers should note that these measures have not yet taken effect. This consultation only seeks input on details of the new rights, and it is expected that these will be brought into force in 2027 through separate regulations.
Following consultation, the Government will develop final policy positions. We will provide further updates in due course.
The consultation paper can be accessed here: Make Work Pay: ending one-sided flexibility – reforms of zero hours and similar contracts - GOV.UK
Nina Gilroy comments:
The consultation paper gives employers a good indication of how the key measures are likely to take effect. While the measures have not yet taken effect, employers should begin to consider how this will affect their workforce, particularly casual workers. We encourage all employers to respond to the consultation where these regulations could have a significant impact on flexibility in their business.
If you need help with drafting or updating policies and procedures, please contact a member of the team here.
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