Consultation launched on new rights for zero and low-hours workers

Until now, the government has given very little detail on how these rights will work in practice. It has now launched a consultation, ‘Make Work Pay: ending one-sided flexibility - reforms of zero hours and similar contracts’, to gather views on how the new rules should operate. 

While the consultation also covers agency workers, we focus on directly employed workers.  

Right to guaranteed hours

Workers who qualify have the right to an offer of guaranteed hours that reflect what they actually work over a set reference period, but they can choose whether to accept it. This applies to workers on zero-hour contracts, or with low guaranteed hours, where their contract does not match the hours they regularly work. 

The government is consulting on what counts as low guaranteed hours, with a preference of 8 to 20 hours a week. For example, if it sets the threshold at 12 hours, workers with contracts guaranteeing 12 hours or fewer would be in scope, while those guaranteed more than 12 hours would not.

The right depends on what the worker actually works during a reference period. The government proposes an initial 12-week reference period, followed by longer periods (for example, 12, 26 or 52 weeks). It is also consulting on whether subsequent reference periods should run back-to-back or include gaps, where you would not need to record or count hours worked. Workers must also work regularly during the reference period, and the government is considering how best to define this.  

Where you must offer guaranteed hours, you can offer a limited-term contract if this is reasonable. For example, where: 

1. the work involves a specific task, and the contract ends once it is complete (for example, a fruit picker until the harvest finishes), or
2. the role lasts until a particular event (for example, a conference worker is needed until the conference ends), or
3. you have a ‘temporary need’, and the contract ends when that need reasonably finishes. 

The government is consulting on what counts as a ‘temporary need’. 

The consultation also asks how to calculate hours worked during the reference period. Options include: 

• Mean average: all hours worked carry equal weight.
• Median average: unusually high or low weeks have less impact. 

For example, if a worker works 8 hours per week for 7 weeks and 20 hours per week for 5 weeks, the mean average is 13 hours per week, while the median average is 8 hours per week. 

The government also asks whether any workers or circumstances should fall outside this new right. 

Right to reasonable notice of shifts

The government does not think a fixed notice period will work in every case. Instead, what counts as ‘reasonable’ will depend on the circumstances. Regulations will set a starting point by defining a presumed reasonable notice period, and the government is consulting on what this should be (for example, 1, 2, 3, or 4 weeks). 

Regulations will also set out the factors tribunals should consider. For example, you may need to give more notice where workers must accept shifts but less where they can refuse them or where you need last-minute cover (for example, if someone calls in sick). 

Payment for shifts cancelled, moved or curtailed at short notice

Regulations will set the payment amount and define what counts as ‘short notice’. Importantly, you will not need to pay where the worker causes the change, for example if they swap shifts between themselves or fail to attend work.

The government is consulting on how long the short notice period should be (up to a maximum of 7 days, for example, 1, 2, 3, 5, or 7 days) and whether to introduce a second ‘very short notice period’, which would trigger higher payments.

The government's intention is that the payment should reflect what the worker would have earned: 

• for a cancelled shift, what they would have earned for that shift
• for a moved or curtailed shift, what they would have earned for the affected hours.

The payment could be:

• a percentage of the worker's expected earnings; or
• a percentage of those earnings based on the National Living/Minimum Wage.

The government is also asking whether to allow exceptions in certain cases, such as extreme weather or widespread power outage, where you will not need to pay if you give short notice of shifts cancelled, moved or curtailed.

Enforcement

The government plans to give the Fair Work Agency (FWA) a role in enforcing these rights and is consulting on whether and how it should do so. Workers will still be able to bring claims in the employment tribunal if they wish. 

The government thinks the FWA should focus on enforcing payment for shifts cancelled, moved or curtailed at short notice. 

As well as requiring you to pay workers what you owe, the government could also impose penalties to encourage compliance. The government proposes a penalty of 50% of the arrears, with a minimum penalty of £100 per case and a maximum of £5,000 per worker. If you pay the worker the amount owed and at least 50% of the penalty within 14 days of receiving a notice of underpayment, the penalty will be treated as paid in full. 

Next steps

The consultation closes at 11:59pm on 25 August 2026. The government will then review the responses and set out the detail in regulations. If these changes are likely to affect your organisation, we encourage you to respond to the consultation. 

You can find more information on all the changes introduced by the Employment Rights Act 2025 here. 

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