The government has opened a consultation on plans to curb zero-hours and similarly flexible contracts, setting out proposals that ministers say are designed to give workers more predictable earnings and more control over their schedules. According to the Department for Business and Trade, the reforms are intended to end what it calls one-sided flexibility and cover rights to guaranteed hours, reasonable notice of shifts and compensation when shifts are changed or cancelled at short notice.

Changes form part of wider employment rights reforms

The consultation sits within the wider Employment Rights Act 2025, the legislation that followed the Employment Rights Bill after it received Royal Assent in December 2025. Ministers say the changes could affect more than one million workers directly, while government publicity around the launch suggests many more people face uncertainty over weekly hours and pay. The consultation closes on 25 August 2026, with the new regime expected to be phased in afterwards.

Debate grows over proposed guaranteed hours

One of the most contentious elements is the proposal for guaranteed hours based on a 12-week reference period, with the government’s preferred range set at between eight and 20 hours a week. That has prompted criticism from trade unions, which argue the baseline is too low and could leave many staff trapped on short-hours contracts while still regularly working more than they are formally offered. Usdaw’s general secretary, Joanne Thomas, has said that many retail workers already face that mismatch, with hours that can be reduced at the employer’s discretion.

Employers warn against excessive rigidity

Business groups have also warned that the package may be too rigid for sectors that rely on fluctuating demand. UKHospitality has argued that standard zero-hours arrangements remain important for seasonal industries, while the British Retail Consortium has criticised the idea of lengthy notice requirements for shift changes as unrealistic on the high street. The Living Wage Foundation has separately said that almost a third of working adults receive less than a week’s notice of their hours, underscoring the scale of instability ministers are trying to address.

Reward Strategy Says

The government’s consultation on reforms to zero-hours and flexible contracts signals potentially significant implications for workforce planning, payroll administration and labour costs. The proposals would introduce rights to guaranteed hours, advance notice of shifts and compensation for short-notice cancellations, with the aim of improving income security for employees. While unions argue the proposed guaranteed-hours threshold may not go far enough, employers have raised concerns about reduced flexibility and increased administrative burdens, particularly in sectors with fluctuating staffing needs. 

All this means we should monitor the consultation closely, as the changes could require updates to scheduling practices, contract management, payroll processes and budgeting for additional compensation liabilities.

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