Zero Hours Contracts

A zero-hours contract is a working arrangement where the employer does not guarantee a minimum number of working hours. The worker may be offered work when the employer needs them, but the amount of work can vary from week to week.

Zero-hours contracts are commonly used in sectors where demand changes, such as hospitality, retail, leisure, care, events, education, cleaning and seasonal work. They can provide flexibility, but they can also create uncertainty about income, working patterns and job security.

Are Zero-Hours Contracts Legal?

Zero-hours contracts are currently legal in the UK, but they must not be used to deny workers basic legal rights. A person on a zero-hours contract may still be entitled to the National Minimum Wage, paid holiday, rest breaks, protection from discrimination, protection from unlawful deductions and other statutory rights.

The exact rights will depend on the person's employment status. Someone may be an employee, a worker or genuinely self-employed. The label in the contract is not always decisive.

Employee or Worker?

People on zero-hours contracts are often classed as workers, but some may be employees depending on the reality of the arrangement. Employment status depends on factors such as control, mutual obligations, personal service, integration into the business and how the work operates in practice.

This matters because employees have additional rights, such as protection from unfair dismissal after the qualifying period, statutory redundancy pay, maternity and paternity rights, and some family-related rights.

No Guaranteed Hours

The central feature of a zero-hours contract is that there is no guaranteed minimum amount of work. The employer can offer work when needed, and the worker may not receive regular hours.

However, if the working pattern becomes regular over time, the reality of the relationship may become important. Future reforms are intended to give some zero-hours and low-hours workers the right to be offered guaranteed hours reflecting the hours they regularly work.

Exclusivity Clauses

Employers must not use exclusivity clauses to stop a zero-hours worker from working for another employer. ACAS confirms that exclusivity clauses are banned for zero-hours contracts.

This means an employer should not prevent a zero-hours worker from taking other work simply because they want the worker to remain available without guaranteeing hours.

Holiday Pay

Workers on zero-hours contracts are entitled to paid holiday. Holiday entitlement will usually be calculated by reference to the hours worked and the applicable holiday pay rules.

Employers should keep accurate records of hours worked and holiday accrued. Workers should check payslips and holiday arrangements carefully, especially where hours vary.

National Minimum Wage

Zero-hours workers must be paid at least the National Minimum Wage or National Living Wage for the hours they work, depending on their age and status.

Employers should also consider working time, travel time, training time, deductions, uniforms, and unpaid tasks that affect minimum wage compliance.

Rest Breaks and Working Time

Zero-hours workers may have rights to rest breaks, daily rest, weekly rest and paid annual leave under working time rules.

Where a worker regularly works long or irregular shifts, the employer should ensure that working time rules are followed and that records are accurate.

Notice of Shifts

One common problem with zero-hours contracts is short notice of shifts or last-minute cancellation. At present, the position often depends on the contract, workplace policy,y and whether the worker has suffered unlawful deductions or other loss.

The Employment Rights Act 2025 reforms are intended to introduce rights to reasonable notice of shifts and payment where shifts are cancelled, moved or cut short at short notice. Acas says these changes are expected in 2027.

Guaranteed Hours Reform

The government has consulted on reforms designed to end one-sided flexibility in zero-hours and similar contracts. The proposed approach includes a right to guaranteed hours based on hours worked during a reference period, expected to be 12 weeks, although detailed rules are subject to regulations and implementation.

The policy aim is to prevent employers from using zero-hours arrangements in which workers, in practice, work regular hours but without the security of a regular contract.

When Zero-Hours Contracts May Be Appropriate

Zero-hours contracts may be appropriate where work is genuinely irregular, unpredictable or seasonal, and where both sides want flexibility.

They can be useful for students, people with caring responsibilities, semi-retired workers, seasonal workers, casual event staff or people who want occasional work. The key issue is whether the flexibility is genuine and not one-sided.

When Zero-Hours Contracts May Be Unfair

Problems can arise where workers are expected to be constantly available, punished for refusing shifts, given no reliable income, denied basic rights, prevented from working elsewhere, or treated as casual despite working regular hours for a long period.

A zero-hours contract should not be used to avoid employment rights, reduce security unfairly, or disguise what is really a regular employment relationship.

What Should Workers Ask Before Accepting?

Before accepting a zero-hours contract, workers should ask how often work is likely to be offered, how much notice is given for shifts, whether shifts can be cancelled, whether cancelled shifts are paid, how holiday pay is calculated, whether they can work elsewhere, and what happens if they refuse work.

They should also ask whether there is any realistic opportunity to move to a guaranteed-hours contract if regular work becomes available.

What Should Employers Consider?

Employers should use zero-hours contracts only where they are genuinely suitable. Contracts should be clear, accurate and consistent with how the work operates in practice.

Employers should avoid exclusivity clauses, keep proper pay and holiday records, give reasonable notice where possible, avoid penalising workers unfairly for refusing work, and review whether regular workers should be offered more secure terms.

Dismissal, Discipline and Less Favourable Treatment

Workers should not be unlawfully treated for asserting statutory rights, such as the right to minimum wage, holiday pay, protection from discrimination, or protection from unlawful deductions.

If an employer stops offering shifts because a worker raised concerns, refused unlawful treatment or asserted legal rights, legal advice may be needed. The available claim will depend on the person's employment status and the facts.

Discrimination

Zero-hours workers are protected from unlawful discrimination. This includes discrimination because of age, disability, sex, race, religion or belief, sexual orientation, gender reassignment, marriage and civil partnership, pregnancy or maternity.

Irregular hours should not be used in a way that unfairly disadvantages protected groups unless the employer can legally justify its approach.

Current Reform Position

The law on zero-hours and low-hours contracts is changing. The Employment Rights Act 2025 reforms are intended to give qualifying workers rights to guaranteed hours, reasonable notice of shifts and payment for short-notice cancellation, movement or curtailment of shifts.

Acas states that changes to zero-hours and low-hours contracts are expected in 2027. Employers and workers should check current guidance before relying on the new rights, because detailed regulations and implementation dates may affect how the rules apply.

When Legal Advice May Be Needed

Legal advice may be needed where a zero-hours worker is denied holiday pay, paid below minimum wage, prevented from working elsewhere, punished for refusing shifts, misclassified as self-employed, discriminated against, dismissed, or required to work fixed hours without contractual security.

An employment solicitor can advise on employment status, contract terms, holiday pay, minimum wage, discrimination, unlawful deductions, unfair dismissal, worker rights, future guaranteed-hours rights and tribunal claims.

Current Position

Zero-hours contracts remain lawful, but they must be used properly. Workers may still have important employment rights, including holiday pay, minimum wage and protection from discrimination.

Further reforms are expected to reduce one-sided flexibility by giving some workers greater security over hours and shift notice. Until those reforms are fully in force, workers and employers should check the current contract, actual working pattern and up-to-date legal guidance.

Disclaimer

Solicitors.com is not a firm of solicitors and does not provide legal advice. The information on this page is for general guidance only and should not be relied upon as a substitute for advice from a regulated solicitor. Employment law, worker rights and zero-hours contract rules can change, and how the law applies will depend on the facts of each case.

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