In this blog, the CIPD's employment law consultant Sally Sellwood breaks down the new rights to guaranteed hours and shift notice under the Employment Rights Act 2025, and what the changes mean for zero hours and low hours contracts.
These changes affect several areas, including new rights to:
Under the right to guaranteed hours, if you employ people on zero hours or low hours contracts, you’ll need to offer them guaranteed hours that reflect the hours they’ve worked during an initial reference period. The government’s preferred reference period is 12 weeks, though this is still subject to consultation. Employees don’t have to accept the offer. But if they turn it down, employers will still need to make further offers after each later reference period.
Employers will also need to give employees a legal minimum period of notice for scheduled shifts, and for any cancellation or shortening of their shifts instigated by the employer. If you give short notice of a change, you’ll need to pay compensation based on a percentage of what the employee would have earned.
Employees will be able to enforce these rights at an employment tribunal.
These rights don’t ban zero hours and low hours contracts, but they fundamentally change how they work and will restrict how you can use them in practice.
The detail is still being finalised. Use this time to map out how and where you use zero and low hours contracts in your organisation, and start planning the systems you’ll need to comply with the rules once they’re confirmed.
Government is almost certain to bring these new rights into force in 2027, but there’s still time to influence the detail through the current consultation. Understanding how these new rights will work in practice means people professionals are well-placed to provide evidence-based feedback on the proposals.
The government is currently consulting on several aspects of the new rights, including the length of the initial and later reference periods, and how much notice you need to give for shifts and shift changes.
The CIPD is building a response to the consultation through survey data, focus groups and one-to-one interviews.
Do you use zero or low hours contracts? Get in touch with Claire Deller-Rust (Claire.DellerRust@cipd.co.uk) by 4 pm on Friday 14th August with any top-level feedback you would like us to consider in preparing our response. If you’d like to discuss in more detail, we can aim to arrange a call with a member of our policy, practice and public affairs team to discuss the impact on your organisation.
Organisations can also respond to the consultation themselves.
Guaranteed hours and shift notice are just one part of the wider Act. For hands-on guidance across all areas of the Act — from trade union reform and family leave to probation, unfair dismissal and contingent workforces — join us at the CIPD's Annual Conference and Exhibition on 4-5 November. You'll find out how fair, compliant employment practices can reduce risk, build trust and support better outcomes for your people and your business.