Zero-hours contracts: Changes ahead

If you’re reading this, the chances are you’ve heard of zero-hours contracts and might even have one yourself. These contracts can be a mixed blessing, offering both flexibility and uncertainty.

With the UK government planning to roll out changes to zero-hours contract law in the Employment Rights Act 2024, it’s a good time to understand what’s going on and how the changes might affect you.

Have a look at our guide on employment contracts for an overview of the different types of contract on offer to employees and workers.

 

What is a zero-hours contract?

Put simply, a zero-hours contract – sometimes also called a casual contract – is an arrangement between you and your employer where your employer doesn’t guarantee you any set hours of work. Instead, you’re called in to work when needed. You’re also not required to offer or work specific hours on a regular basis.

 

The advantages for you of a zero-hours contract

One of the biggest benefits of a zero-hours contract for workers is flexibility. You can often choose when you’re available to work, which can be perfect if you need to balance your life around other commitments.

For instance, if you’re studying or caring for family, you can fit work around your schedule rather than try to fit your schedule around rigid hours of work.

These contracts can also offer you a chance to gain experience in different roles or industries without the pressure of a long-term commitment. This can be especially beneficial if you’re still exploring what your career path should be or looking to build a more varied skills set.

 

The disadvantages of zero-hours contracts

The unpredictability of zero-hours contracts can be really stressful. You can never be sure when you’ll be called in to work or how many hours you’ll be offered each week. This can make it difficult to budget your finances or plan your personal life.

Moreover, because your hours aren’t guaranteed, you might find it harder to qualify for benefits like sick pay or holiday pay. This lack of security can leave you feeling particularly vulnerable, especially if you rely on your job to make ends meet.

Proposed changes to zero-hours contract law

Changes proposed by the government in the Employment Rights Act 2024 are set to transform current zero-hours contract law and practices. Employers and other interested groups are being consulted about the changes which are predicted to come into force some time during 2026.

Two major changes are proposed in order to provide more stability and better protections for workers, namely:

1.Minimum guaranteed hours

It’s proposed to introduce minimum guaranteed hours for workers who don’t at present have any guaranteed hours or who just have a very low number of guaranteed hours.

Under these proposals, your employer will have to offer you a set number of hours over a given period and will also have to follow working patterns that you’ve worked previously.

If you can’t commit to the amount of guaranteed hours offered, and/or if you prefer to remain on your current zero-hours arrangement, you will be able to turn down the offer.

2. Advance warning of your hours/shifts

It’s proposed to enhance the amount of notice that people on zero-hours contracts are given about changes to forthcoming shifts or hours of work.

Under the current rules, if your hours are changed without advance warning, you can’t do much about it. With the new rules, you’ll receive better advance notice of your shifts, giving you more time to plan ahead and to adjust your plans accordingly.

The Act also proposes that you should get paid if your shifts are cancelled, reduced or changed by your employer at very short notice.

 

What these changes to zero-hours contracts mean in practice

The guaranteed minimum hours should make your financial situation more stable. Knowing you’ll have a certain number of hours each week helps you plan your finances better and reduces the stress of not knowing when you’re next going to work and get paid.

The improved notice about changes in your shifts and being paid for shifts cancelled at  short notice mean you’ll have time to take action if/when your hours change. Whether you get an increase or a decrease in hours, you’ll have more time to adjust your plans, look for additional work if necessary, or even take a break if you want to.

Zero-hours contracts: Looking ahead

If you’re a zero-hours contract worker, or thinking of becoming one, keep an eye on updates to the government’s proposals from sources such as Monaco Solicitors’ website, or related gov.uk publications.

Meantime get in touch with Monaco Solicitors if you think you’re being unfairly dismissed, or had your employment contract breached  We are a leading firm of employment law solicitors specialising in employment law for employees and workers and will promptly let you know whether or not we can help.