Zero hours and casual contracts
Editor's message: Under a "zero hours" contract, an individual is not contracted to work a set number of hours, and is paid only for the hours that they actually work. The term is often used interchangeably with "casual" workers, who generally are also not guaranteed a fixed number of hours of work. In practice, there may be little to distinguish between these types of working arrangements.
Employers commonly use zero hours or casual contracts where the work is seasonal or where the requirement is unpredictable, as this gives the employer flexibility.
As anticipated, the Employment Rights Bill, which was published on 10 October 2024, contains detailed and complex provisions aimed at reforming the rules surrounding zero hours contracts. While the Bill does not outright ban zero hours contract, it does grant qualified workers the right to a guaranteed hours contract that reflects their regular working hours over a particular reference period. Additionally, the Bill contains clauses that require employers to give reasonable notice for shifts, as well as notice for any cancellations or changes to shifts. It also contains provisions for payment for shifts that have been cancelled, moved or curtailed. Although the Bill provides a framework, there is still a substantial amount of detail that remains to be developed through regulations. In its Next Steps to Make Work Pay, the Government states that it expects to begin consulting in 2025 on the various measures covered in the Bill and anticipates that "the majority of reforms will take effect no earlier than 2026".
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HR and legal information and guidance relating to zero hours and casual contracts.