Consultation launched on reforms to zero hours employment contracts

A consultation has launched on government plans to reform zero hours contracts to end one-sided flexibility and uncertainty in employment contracts.

The consultation will run until the end of August and ask both employers and workers about a range of potential minimum hours thresholds being considered that aim to balance retaining flexibility for businesses, while also giving workers greater certainty about shift patterns and income.

According to the Living Wage Foundation, nearly six in ten workers who work variable hours currently receive less than a week’s notice of shifts. Under proposals being considered by government, arrangements where employers take all the flexibility and workers bear all the risk, will be banned. Qualifying workers will instead be entitled to reasonable notice of shifts, and payments where work is cancelled, moved or curtailed at short notice.

The consultation will consider three key changes, which include:

• A right to guaranteed hours – employers will be required to offer workers guaranteed hours reflecting the hours they work over a reference period (preferred by government to be initially set at 12 weeks), with workers able to remain on zero hours if they wish
• A right to reasonable notice of shifts – employers will be required to provide eligible workers with reasonable notice of shifts, with workers able to bring a tribunal claim if this is not met.
• A right to payment for shifts cancelled, curtailed, or moved at short notice

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 zero hours contract 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 guidance that would be useful. Acas currently has free advice for employers on how to use zero hours contracts responsibly, which will be updated once these new changes come into effect.”

Changes to rules regarding zero hours contracts follow a number of other reforms to employment law that have taken effect this year in the Employment Rights Act 2025, such as day one rights to statutory sick pay, paternity leave and flexible working requests.

The consultation on zero hours contracts reforms has been published on the government website and will close on 25th August 2026.