The Employment Rights Bill: a crackdown on zero-hour contracts

The Employment Rights Bill, published on 10^th October 2024, has introduced fairer measures to those on zero-hour contracts, protecting employees’ financial security and wellbeing.

Under the new proposed laws, employees will have the right to:

• A guaranteed hours contract if they work regular hours over a defined period;
• Reasonable notice of shifts; and
• Compensation for last-minute cancellations or shift changes.

What is a zero-hour contract?

A zero-hour contract means that an employee does not have a fixed set of working hours from their employer. It can be a flexible option for both the employee and employer. Under a zero-hours contract, your employer is not required to give you work and you do not have to work when you’re asked.

Zero-hour contract workers are not limited to working for one organisation and are able to work for more than one employer. Just like regular workers, they are also entitled to statutory annual leave and National Minimum Wage.

Key changes under the Employment Rights Bill

Guaranteed hours contract

A guaranteed hours contract has been included in the Employment Rights Bill and offers those who are on a zero-hours or a low-hours contract guaranteed hours based on the number of hours they typically work in a certain reference period (anticipated to be 12 weeks).

Those wanting to continue working on a zero-hours contract for the flexibility it offers can still choose to.

Reasonable shift notice

Employers will be required to let workers know of any changes to their shifts in a reasonable timeframe (the Government will use regulations to state how much notice should be ‘presumed reasonable’). If this is not followed, employees can bring a tribunal claim against their employer, where the court will decide if the notice to their shift was reasonable or not.

If a worker is successful at a tribunal, a tribunal must make a declaration and may also make an award for just and equitable compensation based on financial loss. The maximum possible award will be capped, but the amount of the cap is unknown at present. Further details will be set out in the regulations.

Shift compensation

Workers will be given compensation if their employer cancels, moves or reduces their shift at short notice. A lot of the details to this are still unknown; the Government is expected to release more information on what constitutes short notice, how much the payment will be, and whether there will be any exemptions.

When are the changes expected to come in?

The Government has proposed that many of these changes for zero-hour workers will begin consultation in 2025 and reforms will take effect no earlier than 2026.

Contact our employment law solicitors

If you’re unsure of your rights when it comes to a zero-hours contract, our employment law solicitors might be able to help. Call us on 0117 905 9791 or fill out our online enquiry form.