End of exploitative zero hours contracts to give people security and predictability at work
Changes to end one-sided flexibility and uncertainty for workers through ban on exploitative zero hours contracts set out in consultation.
- Changes will end one-sided flexibility, help people plan their finances and daily lives, or enjoy benefits of a zerohourscontract if they wish to keep one.
- This will help save workers in some of the most deprived areas up to £600 in lost income from the hidden costs of insecure work.
- Millions of workers whocurrently face uncertainty over their weekly hours and earningswillbenefitfrom governmentreforms that willgive them certainty and predictabilityover their income.
Ministershavetodaytaken the next steptoending exploitative zero hours contracts by launching a consultation to help deliver reformsto benefitmore than18 million people, some ofwhom currently face uncertainty over their weekly hours and earnings.
Nearlysix in ten of workerswho have variable hourscurrentlyreceive less than a week’s notice of their shifts, according to the Living Wage Foundation.That means millionsofworkingpeoplestruggling to plan their lives and budgets.In the worst cases it meansshifts cancelled the night before or even while people arealreadyon their way to work.
This will help save workers in some of the most deprived areas up to £600 in lost income from the hidden costs of insecure work.
While thosewhovaluethe flexibility of a zero hours contractwillstillbe able to choose one,exploitative arrangements, where employers take all the flexibility and workers bear all the risk, willbe banned.
Workers,who qualify,will also be entitled to receive reasonable notice of their shifts and a payment if their shifts are cancelled, moved, or curtailed at short notice. This will stop workers travelling into work for shifts or arranging care for children and relatives, only for a shift to be cancelled at the last minute without pay.
This open consultation, which will close at the end of August, will ask employers and workers about a range of potential hours thresholdstohelp the Government to strike the right balance between protecting workersfrom insecure workand retaining flexibility for businessesand workers who benefit from it, while building a more resilient economyand guardingagainst unintended consequences from this major change to the Labour market.
Employerswho already provide this security andpredictability for their workers willbenefitfrom a level playing field. These measures will help drive up standards andeliminateundercutting.
Business Secretary Peter Kyle said:
It’s not right that people can work regular hours but still have no certainty about their payfrom week to week.Thesevitalchanges will mean more certaintyfor millions of peopleand will save the lowest paid workers hundreds of pounds.
Banning exploitative zero hours contractsis totemic because this government believes that people should be treated with dignity and respect at work.
We’re consulting because we need to get the detailright to ensure these reforms work in practice and guard against unintended consequences from this major change to the labour market.
Employment Rights Minister KateDearden said:
Ending uncertaintyover hours and pay is one of thebest ways we can boost living standards for millions ofpeopleand families across the country.
These reformsputworkersin the driving seat, givingthosewho want guaranteed hours thecertaintythey deserve,whilstprotecting others who prefer the flexibilityazerohourscontract offers.
Businesses can reduce staff turnover, improve skills, and boost productivity by improving job quality and workforce wellbeing by giving workers more security. This in turn can provide a boost to growth in the economy.
The government wants to hear from workers, employers and other organisations to help shape the final detail of thesereforms andensure they workin practice.
Niall Mackenzie, Acas Chief Executive, said:
These reforms aim to end irresponsible use of zero hours contracts, with guaranteed hours for workers to help give them financial stability and security. Some workers may value the flexibility of a zerohourscontract if they are being used fairly and responsibly and this consultation aims to get this balance right.
I would encourage employers and workers to respond with evidence on what would work best in practice, alongside any further guidancethatwould be useful.Acascurrently has free advice for employers on how to use zero hours contracts responsibly, which will be updated once thesenew changescome into effect.”
Notes to Editors
- The consultationhas been published here and will close on25th August 2026:Make Work Pay: ending one-sided flexibility – reforms of zero hours and similar contracts - ǸԹ
- Living Wage Foundation data onvariablehoursworkers receiving less than aweek’snoticeof shifts:
- Right to guaranteed hours-Employers will berequiredto offerqualifyingworkers guaranteed hours reflecting thenumber ofhours they work over reference period, which will befurthersetout in regulations. The Government is consulting on the length of the initial reference period with aGovernmentpreference of 12 weeks.Qualifyingworkerswill be able to reject an offer of guaranteed hours andremain on a zerohourscontract if they wish.
- Right to reasonable notice of shifts-Employers will berequiredto provideeligibleworkers with reasonable notice of shifts. If anemployerschedulesshifts with unreasonablenotice, the worker can bring a tribunal claim. The tribunal will decide whether the worker was given reasonable notice of the shift. The Government will use regulations to state how much notice should be ‘presumed reasonable’. This will be the tribunals’ starting point. The Government will also set out the factors the tribunals should look at whendeterminingwhether the notice was reasonable or notas part of this consultation.
- Right to payment for shifts cancelled, curtailed, or moved at shortnotice -Employers will berequiredto make payments toeligibleworkers if they cancel, move or curtail a shift at short notice.
- Please find below some scenarios which explain the benefits of the policy and howitcouldaffect the lives of everyday workers. These examples are fictional and purely to assist with understanding the policy:
- Jordan from Middlesbrough is 24 and works as a warehouse operativeon a zero hours contract. Some weeks he gets 35 hours, other weeks he gets none. The new reforms could give Jordan an opportunity to qualify for the right to guaranteed hours – a right intended to improve stability and certainty in working hours.
- Priya from Leicester is 38 and works in a hotel as a housekeeper. She relies on her zero hours contract as her main source of income, but her employer regularly cancels her shifts with less than 24 hours’ notice — sometimes aftershe’salready arranged childcare for her two children. When that happens, shedoesn’tget paid, but she stillhas tocover the childcare cost. Under the new reforms, Priya could be entitled to a payment when shifts arecancelled at short notice, meaningshe’snot bearing the full cost of the flexibilities her employer wants or needs.
- Amara from Wolverhampton is 32 and works through an agency for a care home while studying part-time for a nursing qualification. She is given very little notice of her shifts, which makes it almost impossible to plan her classes or coursework around her work schedule.She’shad to turn down shifts she could have worked — and miss lectures she wanted to attend — because of last-minute changes. The new reforms could give Amara reasonable notice of her shifts, helping her manage both her career and her studies without having to choose between them.
- Marcus from Bristol is 58 and works in a local shop on a zerohourscontract, which suits him perfectly. Having taken early retirement from a full-time teaching role, he enjoys being able to pick up work when it suits him and turn it down when he wants time to travel or spend with his grandchildren.He’snow worried that reforms might force him onto a contract with set hours that would take away the flexibility he’s built his lifestyle around.In reality, Marcuswill be able to stay on a zero hours contract if he chooses.