What changes will the Act make to zero-hours contracts and casual work?

The Act creates new protections for workers on zero-hours and low-hours contracts, and for certain agency workers, to provide greater security and predictability at work. These rights are due to come into force during 2027, with important details to be set out in regulations.

Key changes include:

• Workers who regularly work more hours than their contract guarantees may have the right to be offered a guaranteed-hours contract reflecting the hours they normally work.
• Employers will be required to provide reasonable notice of shifts, shift changes and cancellations.
• Workers may be entitled to compensation where shifts are cancelled, moved or curtailed at short notice.
• The framework also covers qualifying agency workers, although regulations will determine how the rights and responsibilities apply in agency arrangements.

The new rights are intended to address one-sided flexibility, where workers have little certainty about their working hours or income while employers retain significant control over scheduling.

Existing zero-hours contracts will not automatically end. However, workers on these contracts may become entitled to a guaranteed-hours offer if their working pattern demonstrates that they regularly work more hours than their contract guarantees.

What this means for union reps

• Workers on zero-hours, low-hours and agency contracts may gain greater security and predictability over their working time and earnings.
• Reps may see an increase in queries about guaranteed-hours offers, shift scheduling and compensation for short-notice cancellations.
• Workplace monitoring and collective bargaining may be important to ensure employers implement the new rights fairly and do not seek to avoid them through changes to working arrangements.