Government publishes new guidance on zero hours contracts

Background

The government has published new guidance for employers on the use of zero hours contracts. The guidance explains the current legal position, including when zero hours contracts may be appropriate, alternatives to zero hours arrangements, and good practice when offering and cancelling work.

Importantly, the guidance does not yet reflect the significant changes due to be introduced under the Employment Rights Act 2025. The government confirms that it will be updated once those reforms come into force.

Employment Rights Act changes

From 2027, workers on zero hours and certain low hours contracts are expected to gain new rights, including the right to be offered guaranteed hours based on their working pattern and rights to reasonable notice of shifts and compensation where shifts are cancelled, moved or curtailed at short notice.

Employers using casual workforces should therefore treat the new guidance as reflecting the current legal framework only and continue preparing for the forthcoming reforms. Our Employment Rights Act tracker provides a timetable of the planned changes and the practical steps employers should be taking to prepare.

Learning points for employers

The updated guidance provides a helpful reminder of current best practice but should be read alongside the forthcoming Employment Rights Act reforms. Employers that rely on zero hours or low hours contracts should continue reviewing their workforce arrangements ahead of the introduction of the new guaranteed hours and minimum notice rights in 2027.

For more information or advice, please get in touch with Ellie Searle in our Employment team.