What is changing?
Employers will be required to offer guaranteed hours to “qualifying workers” at the end of each reference period (expected to be 12 weeks). A qualifying worker is not only someone working under a zero hours contract but also someone with a low number of guaranteed hours. Although there will be exceptions to address short-term labour needs. These provisions will also apply to agency workers.
The Act also includes provisions for shift work, which will see employers being required to give reasonable notice for shifts, shift changes and cancellations. Compensation will be available if the employer fails to provide reasonable notice.
When is this changing?
Consultation expected autumn 2025. Provisions are likely to come into force in 2027.
How can I prepare?
- Review Contracts
- Review all zero-hours and low-hours contracts.
- Identify possible qualifying workers.
- Audit systems and working practices
- Consider how practices can change so that workers can be given reasonable notice of shifts.
- Consider how last-minute cancellations or changes can be avoided.
- Track shift patterns to identify shifts that may not comply with the new requirements.
- Training
- Train managers and HR teams so they are able to:
- Educate staff on the new legal duties and worker rights.
- Create clear protocols for offering guaranteed hours and managing shift changes.
- Records
- Keep detailed records of hours worked, shift notices and contract offers.
- Develop internal dispute resolution procedures.
- Engage Legal and HR teams
- Stay informed on developments relating to the ERA