From April 7, significant changes to zero-hours contracts will come into effect in the UK, aiming to protect thousands of workers from exploitative employment practices. The Labour Party government’s Employment Rights Act 2025 does not ban zero-hours contracts outright but eliminates the “one-sided flexibility” that has often disadvantaged workers.
Under the new law, workers who consistently work regular hours during a specified “reference period”—expected to be around 12 weeks—will gain the “Right to a Guaranteed Hours Contract.” This means employers must offer a fixed contract that reflects the worker’s actual hours instead of continuing to rely on unpredictable zero-hours arrangements.
Employers are also required to provide clear advance notice for each shift. If a shift is cancelled or rescheduled at short notice, workers will be entitled to compensation for the lost income, offering greater financial security.
READ MORE: Residents Demand Action as Antisocial Behaviour Escalates on Midland Street
READ MORE: HMRC Dividend Tax Hike from April 2026 to Impact Company Directors’ Income
To prevent employers from exploiting loopholes with “1-hour contracts,” these low-hour agreements will now be treated the same as zero-hours contracts under the new regulations.
Importantly, zero-hours workers keep their rights to statutory annual leave and the National Minimum Wage, just like employees on traditional contracts. Additionally, workers are free to seek employment elsewhere without restriction.
Business Secretary Peter Kyle emphasized the improvements, stating: “The current enforcement system doesn’t deliver for businesses or working people. Our Fair Work Agency will be a game changer in ensuring rights are properly enforced, whilst backing those businesses that already do the right thing.”
Paul Nowak, general secretary of the Trades Union Congress (TUC), welcomed the changes, saying: “The Fair Work Agency is a vital opportunity to turn the page on the era of inadequate enforcement. For too long, bad bosses have got away with flagrantly breaking the law. This isn’t right – it fails workers and the many decent employers who play by the rules.”
Employers are reminded that they remain responsible for the health and safety of workers on zero-hours contracts, ensuring these protections extend beyond pay and hours.