Following the publication of its consultation on 2 June 2026, the government has set out proposals for the detailed regulations required to implement new protections for zero-hours and low-hours workers under the Employment Rights Act 2025 (ERA 2025). The consultation, Make Work Pay: Ending one-sided flexibility: reforms of zero hours and similar contracts, closes on 25 August 2026.
The proposed regime represents a significant shift in the regulation of atypical working arrangements, aiming to address “one-sided flexibility” and improve predictability of work and income for affected workers.
Key rights under the new regime
The ERA 2025 introduces three core rights for qualifying zero-hours and low-hours workers (including agency workers):
- Right to guaranteed hours reflecting the hours regularly worked during a defined reference period
- Right to reasonable notice of shifts, including notice of cancellations or changes
- Right to compensation for short-notice changes, where shifts are cancelled, moved or curtailed at short notice.
These rights will apply to workers on zero-hours contracts or those whose guaranteed hours fall below a prescribed threshold, to be set in regulations.
Guaranteed hours: scope and operation
A central feature of the proposals is the requirement for employers to offer contracts reflecting actual working patterns.
Hours threshold
The government proposes introducing a weekly hours threshold to determine eligibility. While options range from 8 to 48 hours per week, the government has indicated a preference for a narrower band of 8 to 20 hours.
Reference periods
The consultation proposes an initial reference period of 12 weeks, during which a worker’s hours would be assessed to determine entitlement to a guaranteed hours offer. Longer periods (such as 26 or 52 weeks) are also being considered, particularly for subsequent reference periods.
In addition, the government is exploring whether reference periods should run consecutively or include gaps, balancing the objective of worker protection against the administrative burden on employers.
Regularity requirements
Workers must meet minimum criteria to qualify, such as:
- Working a specified number of weeks during the reference period (e.g. 6–12 weeks out of 12)
- Potentially exceeding contracted hours by a minimum amount
The consultation also considers whether guaranteed hours should be based on mean or median hours and whether employers should have flexibility in structuring those hours.
Reasonable notice of shifts
The government intends to introduce a right to reasonable notice of shifts, though the detail remains open for consultation.
Key issues include:
- What constitutes “reasonable” notice (with options ranging from one to four weeks)
- Whether shorter notice periods may be appropriate in certain sectors
- Whether different rules should apply to agency workers
Eligibility for this right may also depend on an hours threshold, potentially separate from that used for guaranteed hours.
Short-notice payments
Where shifts are changed or cancelled at short notice, employers may be required to make compensation payments.
The consultation seeks views on:
- What constitutes “short notice” (suggested range: one to seven days)
- Payment levels (suggested range: 30% to 80% of expected pay)
- Whether higher payments should apply for “very short” notice
Possible exemptions are also being considered, particularly in relation to vulnerable hirers and agency worker arrangements.
Agency workers and data sharing
The new regime will extend to agency workers, with adaptations to reflect the tripartite relationship between worker, agency and hirer.
The government is also consulting on whether to amend the Conduct of Employment Agencies and Employment Businesses Regulations 2003 to require agencies to share relevant data with hirers to support compliance.
Enforcement and penalties
Enforcement will primarily be through employment tribunals. However, the government proposes a role for the Fair Work Agency (FWA), particularly in relation to short-notice payments.
The FWA may be able to:
- Issue notices of underpayment
- Impose financial penalties of 50% of arrears, subject to a cap of £5,000 per worker
This dual enforcement mechanism reflects a broader trend towards more active state enforcement in employment law.
Next steps
No implementation date has yet been confirmed. However, the consultation highlights that many key elements of the regime—including thresholds, eligibility criteria and payment levels—remain open to determination.
Employers should monitor developments closely and begin assessing how their current use of zero-hours and low-hours arrangements may be affected. Early consideration of workforce patterns, contractual structures and shift management practices will be critical in preparing for compliance with the new regime.
If you would like assistance with assessing or reviewing your arrangements in light of these proposals, please contact a member of our team: employment@wslaw.co.uk.