Employment Law Guide 2026: Zero hours and low hours and agency workers

The Government plans to provide greater protections for zero hours, low hours and agency workers. The ERA 2025 requires employers to offer zero hours and low hours workers contracts with guaranteed hours and to provide reasonable notice of shifts, shift changes and cancellations. Similar obligations will apply in respect of agency workers. A Government consultation on the details is expected to be published early in 2026. Employers who use zero hours, low hours and agency workers will want to follow these developments closely and consider responding to the consultation.

Guaranteed hours

Employers will have to offer zero hours and low hours workers a contract with guaranteed hours, reflecting the number of hours they regularly worked during a reference period. Workers will not be obliged to accept the offer, so they will be able to remain on zero hours or low hours contracts if they prefer.

This will be a continuing obligation, with employers obliged to offer a guaranteed hours contract after the end of each reference period (even where a worker has previously refused the offer). Where a worker accepts a guaranteed hours contract but their regular hours in a reference period exceed those guaranteed hours, their employer will have to offer a further guaranteed hours contract reflecting those increased hours. The obligation will continue until the worker’s hours exceed the low hours threshold (so that they are no longer a low hours worker).

Much of the detail will be set out in further regulations, including the length of the reference period (expected to be 12 weeks), the definitions of a ‘low hours contract’ and ‘regular hours’, the form of offer, and the deadline for making and responding to an offer. These matters are likely to be included in the Government’s consultation.

Employers will only be able to offer guaranteed hours on a fixed term basis if they reasonably consider that the worker is only needed to perform a specific task, is only needed until the occurrence of a particular event (such as the return from leave of an employee whose absence the worker was covering) or there is only a temporary need of a specified description (to be specified in regulations) for the work (designed to capture seasonal workers). The Government has a statutory duty to consult on what constitutes a "temporary need" before making regulations on this.

Where an employer fails to comply with its obligations regarding guaranteed hours contracts, a worker will be able to bring a tribunal claim and be awarded compensation of such amount as the tribunal considers just and equitable, subject to a cap which will be specified in regulations.

Reasonable notice of shifts

Employers will have to give workers reasonable notice of shifts (specifying the date, start time, end time and number of hours to be worked), and reasonable notice of shift changes and cancellations. The length of this ‘reasonable’ notice is not yet specified and will be subject to consultation.

Where reasonable notice is not given, workers will be able to bring tribunal claims and be awarded compensation, again of such amount as the tribunal considers just and equitable, subject to a cap which will be specified in regulations.

Workers will also be entitled to payment for shifts cancelled, moved or curtailed at short notice. The amount of the payment will be specified in regulations, but may not exceed the amount the worker would otherwise have received for the shift. The Government will consult on the detail and workers will be able to bring a tribunal claim if the employer fails to pay.

Other tribunal claims

It will be automatically unfair to dismiss an employee for reasons relating these rights, including for accepting/rejecting a guaranteed hours offer, in order to avoid having to offer them guaranteed hours or because the employee believes that they are entitled to a guaranteed hours offer.

Workers will also have the right not to be subjected to a detriment in various circumstances including because they accepted/rejected guaranteed hours, because they declined to work a shift as they reasonably believed the employer had not given them reasonable notice, or because they have brought a tribunal claim in good faith to enforce their rights.

Agency workers

Similar obligations will apply in respect of agency workers. Here the Government has confirmed that the end hirer will be responsible for offering guaranteed hours, both the hirer and the agency will be responsible for giving reasonable notice of shifts and employment agencies will be responsible for paying agency workers compensation if shifts are cancelled, curtailed or moved at short notice (although agencies and hirers can agree reimbursement terms).

Implications/Action points

• Look out for Government consultations considering aspects of the new rights in further detail and consider whether you wish to respond
• Start auditing your workforce to identify how many workers you engage on zero or low hours who could potentially be entitled to the new rights
• Identify seasonal fluctuations in demand for work to identify where fixed-term contracts may be more appropriate
• Review systems for managing shifts and shift changes and consider what changes may be required.