Zero-hours contracts won’t be banned under the Employment Rights Bill (ERB), but protections will be introduced to provide workers with more predictability. Here’s what we know so far.
What’s changing?
Employers will be required to offer minimum-hours contracts to workers who regularly work consistent hours over a 12-week period. This will apply to zero and low-hours contracts (e.g. working five hours per week) and agency workers.
Workers don’t have to accept the offer, but the offer must, at least, be made. Exceptions apply for seasonal or event-based roles, or where the worker resigns or is fairly dismissed during the reference period (‘reference period’ to be set out in regulations).
The Bill is also set to introduce a related right to reasonable notice of any change or cancelled shift. Employers will need to make a payment to workers each time a shift is changed or cancelled at short notice (the details to be set out in regulations).
What steps to take?
This change will add complexity to flexible working arrangements, particularly in sectors like care, hospitality and retail. To get ahead of the change we’d recommend:
Auditing your workforce – know how many workers are on zero-hours or minimum-hours contracts.
Crunching the numbers – start modelling what a 12-week average would look like for these workers, based on actual hours worked vs. what’s in the contract.
Spotting the patterns – track seasonal peaks and troughs to help justify when a fixed-term or temporary increase in hours makes sense, rather than a permanent change.
Reviewing your contracts – take a fresh look at your use of fixed-term contracts, especially where you rely on them for seasonal needs.
Checking your systems – review how work is requested or cancelled and assess whether your processes need updating.
Need help keeping your team on top of all the ERB changes? Our annual People Team Training could be the solution – find out more.
We provide an additional resource throughout the year to keep your team ahead of employment law developments and people trends – so you don’t have to! It’s more than just ‘information giving’ – it’s all about providing practical, relevant solutions to help your team manage the changes and topics we cover throughout the year.
This update is accurate on the date it was published but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.
