February 3, 2026
By Ramyar Hassan
Read time: 6 minutes
The Employment Rights Act 2025 (ERA) will introduce several provisions that will strengthen the rights of workers on zero- and low-hours contracts.
Our employment law expert, Ram, explains when and what is changing and how employers can prepare.
What are zero- and low-hours contracts?
Zero-hours contract: A worker’s hours per week are determined on an ad hoc basis.
Low-hours contract: A worker is guaranteed a minimum number of hours per week.
Individuals engaged under a zero- or low-hours contract in the UK are often described as “casual workers”.
What rights do casual workers currently have?
Casual workers don’t have the full suite of employment rights which employees have, but they do have certain statutory rights to be protected from discrimination, health and safety protection, and the right to the national minimum wage and to receive holiday pay.
However, because of the nature of casual workers’ contracts, both parties currently have very limited obligations to offer or accept work in any given week. This can work well for casual workers who are seeking flexibility, but can also lead to them being disadvantaged by not having a guaranteed or predictable income from their employer.
These obligations currently work as follows:
- Obligation to work: Zero-hours workers aren’t legally obliged to accept any shifts offered by their employer, in most cases. Individuals engaged on low-hours contracts will be expected to work their contracted hours as a minimum, but don’t have to accept any additional work.
- Employer’s Obligation: There is no obligation on employers to provide guaranteed weekly hours to zero-hours workers, or additional hours to low-hours workers, beyond the contracted number.
- Notice of shifts: Employers aren’t obliged to give zero-hours workers any notice before offering, changing or cancelling a shift.
What changes are being introduced under the ERA?
The ERA has been introduced to help address this, with changes being phased in during 2026 and 2027 through new regulations.
The proposed changes for 2026
The first changes, expected to come into force in October 2026, are:
- Right to reasonable notice of shifts: The exact length of notice that is “reasonable” hasn’t been determined yet, and will be subject to consultation. The notice will specify the date, the start and end time, and the number of hours the worker is being asked to work. If the employer fails to provide reasonable notice, the worker can bring a claim at the Employment Tribunal.
- Right to payment for shifts cancelled, cut short, or moved at short notice: If an employer cancels an agreed shift without proper notice, it will have to pay the worker compensation for the cancelled shift. The exact amount (likely to be a certain proportion of the earnings the worker would have made during that shift), and deadline to pay, will be determined in further regulations.
- Agency workers: Liability for compensation is expected to be apportioned between the employer and agency, depending on their responsibility.
The proposed changes for 2027
Zero- and low-hours contracts aren’t being banned altogether; they will continue to exist. However, an employer must comply with the following stricter obligations:
- Guaranteed hours: The ERA will oblige employers to offer many (but not all) casual workers a new employment contract, reflecting the hours they have worked during a reference period (currently expected to be 12 weeks). We’re awaiting further details of which workers will be covered by this right, as it’s likely that workers in certain situations will be excluded.
- Optional for workers: It won’t be compulsory for workers to accept an offer of guaranteed hours; they can continue working under the terms of their zero-hours contract if they consider it more suitable, for example if they prefer complete flexibility.
- Automatic unfair dismissal: If a worker is dismissed for accepting or rejecting a guaranteed hours contract, they can bring a claim for automatic unfair dismissal, regardless of their length of employment.
- Detriment: Workers also have the right not to be subjected to a detriment (other than dismissal) by their employer for exercising their rights in connection with the new laws on zero-hours contracts. A detriment refers to any disadvantage suffered by a worker due to their employer’s actions. One example is a worker being subject to disciplinary action because they declined to work a shift for which they were not given reasonable notice. The worker who suffers the detriment will have the right to bring a claim against their employer.
- Agency workers: Either the employer or, in some circumstances, the agency will be obliged to provide a guaranteed hours contract to agency workers as well. Again, we are awaiting further details of what this right will look like for agency workers.
How can employers prepare for the changes?
Some employers, and some sectors which rely heavily on casual workers (for example, the hospitality, leisure, and care sectors), are likely to be significantly impacted by these changes. Changes such as the requirement to give reasonable notice of shifts, and pay compensation for cancelled shifts, may in particular lead to an extra administrative and financial burden for employers in those sectors.
To minimise those impacts and prepare for the changes, employers should:
- Identify the workers affected – audit your workforce and work out how many casual or relief workers are on your books and how many hours they currently work on average.
- Look at your contracts – casual workers’ contracts will need to be re-drafted to ensure that rights to notice of shifts, offers of guaranteed hours, and compensation for cancelled shifts are included.
- Review your HR systems – from 2027, HR or payroll software will need to be capable of tracking workers’ hours and alerting you of how many hours they are working in any given reference period, so that you can keep on top of when you need to make an offer of a guaranteed hours contract.
- Consider other types of arrangements – for example, for seasonal workers, a fixed-term employment contract might be more suitable than an open-ended casual workers’ contract.
- Seek legal advice – these changes are complex and are likely to come with teething issues and disputes when they are first implemented. It’s important to take legal advice if you are unsure of your obligations in order to avoid falling foul of the new types of claims that casual workers will have the right to bring from later in 2026.
How can you find out more?
Darwin Gray’s employment law experts will be discussing these reforms, in the first of our free bite-size webinar series on 4 February 2026.
The series is designed for employers, HR professionals, senior managers, and anyone responsible for managing people or involved in important employment decisions. Each 20-minute session will focus on a key area of the ERA 2025.
Secure your free place, here.
Some of our employment team will also be speaking at the Wales HR Network panel event on 12 February on the “Changing Landscape of Employment Law”. You can find more details about this here.
You can also reach out to our employment law experts on 02920 829 100, hello@darwingray.com or via our Contact Us form.
02920 829 100 
Zero-Hours Contracts: how the Employment Rights Act 2025 will change the nature of casual work
