Zero Hours Contract Changes 2027: A Guide for UK Employers

What the Employment Rights Act 2025 means for zero hours, low hours and agency workers: guaranteed hours, notice of shifts, short-notice payments, and what to do now.

The Employment Rights Act 2025 gives zero hours and low hours workers three new rights: an offer of guaranteed hours, reasonable notice of shifts, and a payment when a shift is cancelled, moved or cut short at short notice. The government expects the changes to start in 2027, but many of the details are still being decided.

In short:

What is changing for zero hours workers?

Sections 1 to 3 of the Employment Rights Act 2025 create three new rights for zero hours and low hours workers. The Act became law on 18 December 2025, but these rights have not yet taken effect. The details will be set out in regulations, after a government consultation that closed on 25 August 2026.

Who is covered by the new rights?

The new rights cover three groups of workers.

How will the guaranteed hours offer work?

At the end of a reference period, the employer looks at the hours each worker has regularly worked, and offers a contract that guarantees those hours. The worker can accept the offer, or stay on their current contract.

How much notice will workers get of their shifts?

Section 2 of the Act gives workers a right to reasonable notice of shifts, and of any change to them. The government has not set the notice period yet. For directly employed workers, the consultation asked whether it should be one, two, three or four weeks. Shorter options were included for agency workers.

What happens if a shift is cancelled at short notice?

Section 3 of the Act gives workers a right to a payment when a shift is cancelled, moved or cut short at short notice. The Act says “short notice” can be no more than 7 days, and the government asked whether it should be 1, 2, 3, 5 or 7 days.

The payment has not been set. Proposals range from 10% to 80% of the worker’s expected pay (Baker McKenzie summary). The government is also thinking about a higher payment for changes made at very short notice.

When do the changes start?

What records will employers need?

To make fair offers and pay the right amounts, you will need clear records. Four matter most.

Tips for preparing for the zero hours changes

Proven hours, without the spreadsheet

Sense HR records the hours staff really work, and proves who worked, where and for how long. Hours are approved before payroll, and every record stays in one place. Keep your rota for planning shifts: Sense makes sure the hours are true.

See how Sense HR handles time and attendance →

Frequently asked questions

When do the zero hours changes start?+
They are expected in 2027. The exact date will be set by regulations that have not been published yet.
Can a worker turn down a guaranteed hours offer?+
Yes. A worker can accept the guaranteed hours offer, or stay on their current contract.
Are agency workers covered?+
Yes. The hirer will usually have the duty to make the guaranteed hours offer, although ministers can move that duty to the agency in some cases.
Do I need to change contracts now?+
Not yet. The final rules have not been published. Many employers are starting now by collecting proven hours and logging shift changes. Take advice before changing contracts.
Does Sense HR give legal advice?+
No. Sense HR helps you keep good records. Please check the law with your own adviser.

Sources

Sources checked 14 October 2026. This guide is for information only and is not legal advice.

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