Zero hours contracts and the Employment Rights Bill

Many heritage and cultural institutions use zero hour contracts. Whilst these contracts offer flexibility for employers and employees, they have been criticised in recent years for creating job insecurity and unpredictability for workers. The Employment Rights Bill (the Bill) seeks to address these concerns by introducing provisions for guaranteed hours for workers on these types of contracts. This article explores zero hours contracts, the current legal framework and how the Bill aims to reform these practices.

What are zero hours contracts?

Zero hours contracts are employment agreements where the employer is not obliged to provide a minimum number of working hours and the employee is not required to accept any work offered. This flexibility can be advantageous for employers who need to adjust their workforce according to demand, but for employees, it often results in uncertainty.  For example, museums, galleries and similar institutions often need to adjust staffing levels to meet fluctuating visitor numbers and seasonal demands and zero hour contracts allow them to quickly adapt to these changes.

Current framework

Under the current framework, zero hours contracts are permitted, but they are subject to certain regulations. Employers must ensure that workers on zero hours contracts are not treated less favourably than their full-time counterparts. Additionally, exclusivity clauses, which prevent employees from working for other employers, have been prohibited since 2015.

The previous Conservative Government said that it would introduce the right for all workers to request predictable and stable contracts after the worker had completed 26 weeks' service with the employer. The Workers (Predictable Terms and Conditions) Act 2023 received Royal Assent on 18 September 2023, but in September 2024, the Labour Government confirmed that it would not bring the legislation into force. 

The Bill

Guaranteed hours – Whilst the Bill does not “end” the use of zero hours contracts, it introduces significant changes aimed at addressing the issues associated with them. One of the key provisions is the introduction of the right to guaranteed hours, which will require employers to offer a minimum number of hours to qualifying workers (and qualifying agency workers) on zero hours contracts at the end of every reference period (the reference periods will be set out in the forthcoming regulations, but it is expected to be 12 weeks). The offer will represent the hours worked during that period. The duty to make the offer will continue until the worker is no longer classed as a “qualifying worker” (i.e. when the contract guarantees more than a minimum number of hours, details of which will be set out in the regulations). 

Right to reasonable notice for shift work – The Bill also introduces the right to reasonable notice of shifts, shift changes and cancellations. The notice will need to specify the date, the start and end time and the number of hours to be worked. The forthcoming regulations will state how much notice will be deemed to be reasonable. The responsibility for the right to reasonable notice of shifts for agency workers will be shared by the agency and the end hirer.

Compensation – Will be payable to workers and agency workers for cancelled, moved or curtailed “qualifying shifts” at short notice. The definition of a “qualifying shift” extends to shifts that workers are required to work, requested to work or they have suggested working (and the employer has agreed). 

The recent government roadmap states that these measures will be consulted on in autumn 2025 and are likely to take effect in 2027.

What does this mean for employers?

Qualifying workers that are not offered guaranteed hours will have the right to pursue employment tribunal claims. Workers will also have the right not to be subjected to a detriment because the employer believes a worker is entitled to a guaranteed hours offer or because a worker accepted or rejected any offer. If employers do not adhere to the new provisions we are likely to see an increase in litigation, particularly as the Bill also increases the time limit for bringing most employment tribunal claims from three months to six months

These changes are likely to present challenges for some employers from the culture and heritage sector, as zero hours contracts are often used to manage workforce flexibility during demands such as event scheduling and the challenges faced by fluctuating seasons. The requirement to provide guaranteed hours may limit the flexibility that zero hours contracts currently offer, and employers may need to adjust their workforce strategies if zero hours contracts become less attractive. 

Further amendments to the Bill?

On the 7 July 2025, the Government published a number of proposed amendments for consideration as the Bill continues to pass through Parliament. The amendments stipulate that guaranteed hours offers to agency workers must be on terms no less favourable than those the worker had previously been working under (as an agency worker). Pay must be no less favourable than either the agency terms or those of comparable workers (who do broadly similar work). These amendments are likely to be passed as they have been proposed by the Government 

Some of the amendments proposed by opposition parties seek to soften many of the provisions relating to zero hours contracts, such as removing the automatic duty for employers to offer guaranteed hours and instead creating a right for workers to request a guaranteed hours contract. However, those amendments are unlikely to be accepted when the Bill returns to the House of Commons. 

How can employers prepare?

There is no need for employers to take immediate action, but it will be crucial to monitor the Bill’s progress through Parliament. However, it would be advisable to conduct a current workforce audit to assess the use of zero hours contracts and shift practices, as well as reviewing working patterns over blocks of 12 weeks. 

If you need any help with your workforce audits or further information relating to zero hours contracts and the Bill, please do get in touch with our Employment, Pensions & Immigration team.