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The ERA 2025 does not ban zero-hour contracts outright but includes several measures which will significantly inhibit their use. The ERA 2025 contains detailed and very complex provisions on these rights, which are summarised below.

Guaranteed hours offers

The ERA 2025 will require employers to make a ‘guaranteed hours offer’ that reflects the hours ‘qualifying workers’ regularly work over a ‘reference period’. Individuals can reject an offer of guaranteed hours if they wish.

For now, much of the detail of how this will operate is left to further regulations, but what we know so far is:

A guaranteed hours offer will be an offer to a qualifying worker to either vary their terms and conditions or enter into a new contract, although what the details may be set out in regulations.

This is not a one-time only duty, instead employers will have to repeat the assessment of whether a new guaranteed hours offer needs to be made until the qualifying worker no longer meets the criteria. After the initial reference period, the employer must monitor the worker’s working time over subsequent reference periods (the length of which is unknown – again this will be set in regulations) and offer further contracts for guaranteed hours if the conditions to make an offer are met at the end of those periods. The Government has agreed to a statutory duty to consult on the length of the initial and subsequent reference periods.

As the law essentially permits a worker the flexibility to choose to accept or reject a guaranteed hours offer, there are a raft of complicated rules as to what will constitute such an offer, with certain crucial details left to regulations.

As is usual, there are corresponding dismissal and detriment protections:

These provisions in the ERA 2025 are complicated and unfortunately much of the detail is saved for regulations, so we cannot say yet how this new right will work in practice. There is also a promise to consult later on the implementation of the zero-hour contracts measures more generally.

It will be interesting to see what the threshold will be for being a low hours worker, as some employers may try to bypass these complicated laws and just set minimum contractual hours above that threshold if they aren’t set too high – although such employers may be caught by the new anti-avoidance provisions. Even if not – this might not be workable for all businesses.

Further, as the obligation to monitor working time and make guaranteed hours offers is an ongoing one, this will likely be a compliance headache for smaller businesses and for certain sectors such as retail and hospitality that may rely on zero-hour contracts to fill seasonal resourcing gaps.

Notification of shifts

The ERA 2025 will introduce the following rights and obligations:

The above provisions are aimed at ending one-sided flexibility, although employers will need to be organised with resourcing and have facilities to make payments for short notice changes to shifts – this may be more significant for large employers that employ flexible workers regularly (such as in retail and hospitality).

The ERA 2025 also repeals the Workers (Predictable Terms and Conditions) Act 2023, which would have introduced a new right to request a predictable working pattern.

Application to agency workers

Following a Consultation in October 2024, the ERA 2025 extends these rights to qualifying agency workers in a similar way (although with some key differences to reflect the nature of this different arrangement) as follows:

Guaranteed hours offers

Reasonable notice of shifts and compensation for ‘short notice’:

Contracting out by way of collective agreement:

Employers may be concerned about these measures, and the knock-on impact of using agency workers, including increased complexity and costs, but the impact of this will largely depend on some of the details of the threshold application. The Government has said that it will maintain flexibility to cater for different circumstances by exception and indeed the Factsheet currently states that regulations setting out the details may apply differently for directly engaged and agency workers. However, as with many of the elements of this reform, details of how the measures will work in practice are still to be set out.


Timing and developments

Included in the ERA 2025.

The Government had said it will consult on these measures (the roadmap previously suggested Autumn 2025, but this is delayed). This is likely to include consultation on:

The Government has also promised that it will develop guidance on understanding the new rights before they come into force.

The Government’s updated timeline indicates that the measures regarding zero-hours contracts will take effect in 2027, although a specific date is not provided.

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