I’ve had a run of conversations recently with clients and people in my network. They’re all circling the same worry: “Are zero-hours contracts being banned?” The honest answer is no. Something real is happening, though. If you’ve got casual, bank or zero-hours staff on your books, it’s worth fifteen minutes of your time now. Better that than a scramble later.
What’s actually happening with zero-hours contracts
On 2 June 2026, the Department for Business and Trade opened a consultation called Make Work Pay: ending one-sided flexibility. It covers how to implement three new rights already written into the Employment Rights Act 2025. The consultation closes at 11:59am on 25 August 2026.
Nothing is law yet. This consultation is about the detail: the thresholds, the notice periods, the exact mechanics. It’s not about whether the changes happen at all. The direction of travel has settled, but the specifics are still open. The government doesn’t expect the new rights to take effect until 2027.
The three rights are:
1. A right to guaranteed hours — not a right to fixed hours
Workers on a zero-hours contract, or on guaranteed hours below a certain threshold, would qualify if they regularly work more than that over a set period. Their employer would then have to offer them a contract reflecting what they actually work. Crucially, they can turn it down and stay on their current arrangement if they prefer the flexibility.
The government’s preferred threshold for “some guaranteed hours” contracts is 8–20 hours a week, measured over a proposed 12-week reference period (26 or 52 weeks are also on the table). The consultation hasn’t yet settled how to define “regularity” — options include a minimum number of weeks worked in that period, or weeks worked plus a minimum number of extra hours. Genuinely short-term or seasonal roles would generally be exempt. The rules also cover agency workers, with the hirer usually responsible for making the offer.
2. Reasonable notice of shifts
Employers would need to give workers reasonable notice of a shift, and of any changes to it. The consultation is weighing up 1–4 weeks’ notice for directly engaged staff, and something shorter for agency workers. Get it wrong, and you’re facing a tribunal claim for the lost pay.
3. Payment when an employer cancels or cuts a shift short at short notice
If an employer cancels, moves or shortens a shift without enough warning, they’d owe the worker a payment. The consultation is still deciding what counts as “short notice” — options range from 1 to 7 days. It also hasn’t settled whether pay should reflect the actual shift rate or the National Living/Minimum Wage. No payment applies if the worker cancels, doesn’t show, or swaps shifts voluntarily. Enforcement would sit with the new Fair Work Agency, with penalties of 50% of arrears (£100–£5,000 per worker).
Who this actually affects
If your team is genuinely on fixed contracts, this passes you by. It matters if you’ve got casual or bank workers who, in practice, work meaningfully more than their contract says most weeks — hospitality, care, retail, events, anywhere flexibility has become the default way of covering demand.
What to do now about zero-hours contracts
Nothing here is a legal requirement yet — but three things are worth doing before the consultation closes:
Map who’s actually on zero or low hours. Look at who’s regularly working beyond their contracted hours. An 8-of-12-weeks pattern is a rough proxy for who’d likely qualify if the current proposals land as drafted.
Start keeping a proper record now. Hours worked, and notice given (or not) for cancelled or moved shifts. Whatever the final reference period and thresholds turn out to be, this is the data any future calculation will run on — reconstructing it retrospectively in 2027 is a much worse conversation than having it already.
Consider responding to the consultation. It’s open to anyone until 25 August 2026, and small business voices are exactly what’s missing from a lot of these conversations. You can respond directly here.
The bottom line on zero-hours contracts
Zero-hours contracts are staying. What’s changing is the assumption that a business can rely on someone working well beyond their contract, indefinitely, without ever formalising it. If that’s a pattern in your business, it’s worth getting ahead of it now rather than finding out the hard way once the regulations land. It’s also worth keeping an eye on the qualifying period rule, another Employment Rights Act change landing around the same time.
This article reflects the zero-hours contract consultation as of July 2026, based on proposals that are still open for consultation and subject to change. It’s general guidance, not legal advice — speak to BeeSure HR or a qualified employment solicitor before acting on anything above
