Government opens new consultation on zero-hours reforms

Background

The government has launched a consultation on new zero-hours reforms under the Employment Rights Act 2025. The proposals include a right to guaranteed hours, a right to reasonable notice of shifts, and compensation for shifts cancelled, moved or curtailed at short notice.

The reforms will apply in England, Wales and Scotland, with enforcement through employment tribunals and, potentially, the Fair Work Agency (FWA).

Consultation

The consultation opened on 2 June 2026 and closes on 25 August 2026. It seeks views on the detailed regulations needed to implement the new rights and provides insight into the government's preferred approach in several areas.

Guaranteed hours

Employers would be required to make guaranteed hours offers to qualifying workers representing the number of hours worked during a defined reference period. Workers would have the option to decline these offers if they prefer their current arrangements. The government favours setting the initial reference period at twelve weeks for directly engaged workers. The length of subsequent reference periods is unresolved, with options ranging from 12 to 52 weeks. The government also requests views on whether a subsequent reference period should begin as soon as the previous one ends, or whether there should be a gap between them.

One major area of uncertainty is the threshold for guaranteed hours. The preferred range is 8-20 hours per week, but options extend up to 48 hours. Similarly, the method for calculating guaranteed hours offers, whether using a mean or median average, remains undecided, each presenting distinct implications for employers managing irregular shift patterns.

The consultation also considers what exemptions should apply to the duty to make guaranteed hours offers. The government is considering excluding certain categories of workers, such as those holding multiple contracts exceeding the threshold with the same employer, as well as exempting employers in exceptional circumstances, such as businesses whose premises are flooded and are unable to trade. The consultation asks in what circumstances these exceptions should apply and whether any further exemptions should apply, including for agency workers.

The consultation also contains extensive provisions dealing with agency workers, including qualification requirements, responsibility for making guaranteed hours offers, and the allocation of obligations between agencies and hirers.

Reasonable notice for shifts

Reasonable notice for shifts is another cornerstone of the reforms. Future regulations will define a timeframe presumed reasonable for tribunal claims, with employers needing to justify shorter notice periods. The consultation also seeks views on the factors tribunals should take into account when determining whether notice was reasonable in the circumstances.

The government has stated its intention for the right to reasonable notice and payment for shifts cancelled, curtailed, or moved at short notice to apply only to workers whose guaranteed hours do not exceed an "hours threshold". If a worker accepts a guaranteed hours offer that exceeds the relevant threshold, they may fall outside the scope of those rights.

The government is also exploring exemptions for certain hirers, such as vulnerable individuals who receive or procure care services.

Short-Notice Payments

Short-notice payments are intended to compensate workers for shifts cancelled, moved, or shortened within a defined timeframe. The government is consulting on whether the FWA should have an enforcement role in relation to these payments.

The amount payable to workers remains undecided, with the consultation seeking views on payments ranging from 10% to 80% of the earnings that would otherwise have been received for the affected shift. The government also proposes that employers should not be required to make a short-notice payment in certain circumstances, such as where a shift is cancelled due to severe weather or where the cancellation was initiated by the worker.

Preparing for change

The proposed reforms represent a significant shift in employment law. While the consultation provides some insight into the government's proposals, much is yet to be determined.

Those wanting to take part in shaping these proposals, can do so via the official consultation page.