"Guaranteed Hours Offers"

Employers will be required to make a guaranteed hours offer to "qualifying workers", based on their average hours worked during a designated reference period. Qualifying workers then have a specific response period to accept or reject the offer. This process aims to align contracts with actual working patterns, offering greater predictability to workers.

The Government had originally indicated that the initial reference period would be 12 weeks. However, following the recent ministerial reshuffle, the new Minister confirmed in the Commons debate on 15 September that this point will be subject to consultation, with the aim of ensuring the reference period is set at the right length for different sectors. The duration of subsequent reference periods will also be set following consultation. Regulations will define the minimum hours threshold required to qualify for an offer and will clarify what counts as a "low hours" worker.

"Qualifying workers" will include zero hours workers who are employed (whether or not continuously) and workers with a minimum number of contractual hours. The specific minimum number of hours will be set out in future regulations and is not yet known. Additionally, during a reference period (the length of which will also be defined in future regulations), the worker must work a certain number of hours. For workers with contractual minimum hours, the hours worked during the reference period must exceed their contractual minimum in order for the worker to be a qualifying worker.

The system will be cyclical, meaning that if a qualifying worker’s hours increase again after rejecting or completing a previous guaranteed hours offer, the employer will be required to repeat the process and issue a new offer. The government has also confirmed that where work is genuinely temporary, businesses will be able to offer workers temporary contracts.

Agency workers will also qualify for the right to guaranteed hours offers (see below).

Much of the system’s detail will be determined through future regulations, including:

The minimum hours level for a low hours worker to count as a qualifying worker
The duration of the reference period for calculating average hours. The government has confirmed it favours a 12 week "initial" reference period and will consult on the length of subsequent reference periods
The length of the response period for workers to consider the offer
Temporary guaranteed hours for periods of fluctuating demand
Exemptions for specific industries or roles

Right to information about guaranteed hours offers

The amended Employment Rights Bill introduces a duty on employers to take reasonable steps to ensure that workers who it is reasonable to consider might become qualifying workers are made aware of their rights regarding guaranteed hours offers.

The obligation arises during the "initial information period," which is the two-week window in which employers must act. For workers who are already employed on the day the relevant provisions of the Bill come into force (the "commencement day"), employers have two weeks from that date to ensure that those it is reasonable to consider might become qualifying workers are made aware of their rights. For new workers, or workers whose circumstances change, the employer has two weeks from the start of their employment or the point at which it becomes reasonable to consider that they might become qualifying workers to make them aware of their rights.

Employers are also required to ensure that workers continue to have access to specified information about their rights after the initial information period. This obligation applies throughout the worker's employment, provided it remains reasonable to consider that the worker might become, or might again become, a qualifying worker in a reference period. The aim of this provision is to ensure that workers are informed of their rights in a timely manner and retain ongoing access to the relevant information during their employment.

Reasonable notice of shifts and compensation for late changes

The Bill introduces new rights for workers to receive reasonable notice of shifts, as well as compensation for late changes, cancellations, or curtailments. Employers will need to provide advance notice of shift schedules, with any late changes triggering compensation obligations.

Following government amendments:

A shift will be treated as “moved” if it is split into parts or partially rescheduled later in the day
Employers are not required to issue a formal notice where the relevant payment is made in full within the specified deadline
Exceptions to payment obligations must be explained, unless doing so would breach data protection, confidentiality, or involve commercially sensitive information

For a shift to qualify for payment rights, it must be worked (or would have been worked) under a contract that requires the employer to make some work available.

Where a shift is cancelled, moved, or shortened without sufficient notice, workers will be entitled to compensation. This compensation will not exceed the pay for the lost shift, but the exact amount and definitions of terms such as "short notice" and "qualifying shift" will be outlined in regulations. The government notes that what is considered "reasonable notice" will be case-specific, and will set the parameters in secondary legislation accordingly. Guidance will be published before these measures come into force.

The Bill also empowers the Secretary of State to extend these protections to agency workers (see below).

Application to agency workers

Agency workers will benefit from both the right to guaranteed hours offers, and the right to reasonable notice of shifts and compensation for late changes.

In respect of the right to guaranteed hours offers, the Bill confirms that the end-hirer will be responsible for making guaranteed hours offers to qualifying agency workers. When it comes to reasonable notice of shift and compensation for late changes, the updated Bill confirms that the agency will be responsible for any payments due to the agency worker. However, the Bill also contains a mechanism under which agencies will be able to recoup costs from end-hirers if necessary.

In July 2025 the government tabled amendments to introduce a block on the ability to use a guaranteed hours offer to reduce agency worker pay, and a provision meaning that when a guaranteed hours offer is accepted by an agency worker, that person will become a worker of the end user.

Contracting out using collective agreements

The Bill introduces a mechanism to contract out of the new rights to guaranteed hours offers, reasonable notice of shifts, and compensation for late changes, cancellations or curtailments. This is only possible where there is a relevant collective agreement in place.

A relevant collective agreement must be in writing and made by or on behalf of one or more independent trade unions and the worker’s employer. Where the relevant terms of such an agreement are incorporated into the worker’s or agency worker’s contract, and the individual has been notified in writing of both the incorporation and its effect, the statutory rights do not apply.

If a guaranteed hours offer has already been made, it may be withdrawn by notice where the relevant collective agreement terms have been incorporated. In those circumstances, the worker cannot accept the offer. However, a claim may arise if such notice is given in circumstances where the legislation does not permit it.

Automatic unfair dismissal

Government amendments to the Bill provide that it will be automatically unfair to dismiss a worker in connection with their guaranteed hours rights. This includes dismissal for:

bringing a claim relating to a guaranteed hours offer
being issued (or allegedly issued) with a notice withdrawing such an offer
alleging facts which could give rise to such a claim

Commencement

The government plans to implement these provisions in 2027.

Key dates and events

2 December 2024: Consultation closed on the application of the right to guaranteed hours to agency workers.
27 January 2025: Amended version of the Bill published, containing more information on who will be a "qualifying worker" and on the duty on employers to make relevant workers aware of their rights.
4 March 2025: Government confirms it will table amendments to the Bill in order to apply each of the zero-hours provisions to agency workers.
8 May 2025: House of Lords Committee Stage (2nd sitting): 26 technical amendments to zero hours and agency worker provisions approved.
1 July 2025: implementation roadmap published, confirming that provisions are intended to take effect in 2027.

Further reading

Read our article for more information (please note this article is based on the original version of the Bill).

Fiona is our People Development Advisor (Business Services), in our People and Culture team.

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