Consultation opens on zero hours contract reforms

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contract consultation

Peninsula Team, Peninsula Team

(Last updated )

The Government has launched a consultation on the measures that are due to be implemented via the Employment Rights Act 2025 to reform zero hours contracts and end what the Government calls “one-sided flexibility”.

The consultation seeks input on the following new rights, which will be set out in Regulations:

The government aims to ensure that workers on zero hours contracts, low hours workers and agency workers are protected while enabling businesses to continue to adapt to market conditions and seasonal variations. It says it recognises that some workers value and need the flexibility of zero hours contracts, such as students and those with caring responsibilities, which is why the government is not banning the use of these types of contract, however it aims to end ‘exploitative’ zero hours contracts to ensure that all jobs provide a baseline level of security and predictability.

The consultation makes clear that employers should not have to make a short notice payment where the cancellation, curtailment or movement is initiated by the worker, i.e. where workers agree to swap a shift between themselves, or where a worker does not show up for work.

The consultation is open until 11.59pm on 25 August 2026. The government will consider the feedback to the consultation before publishing its response and making regulations in due course. The changes are expected to be implemented during 2027.

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