20/08/2026
Zero-hours consultation closes 25 August. SMEs should review now.
Under the Employment Rights Act 2025, the UK Government is consulting on guaranteed hours, reasonable notice of shifts and payment where shifts are cancelled, moved or curtailed at short notice.
Government analysis reported via BBC/GOV.UK RPC opinion places potential employer costs at ยฃ350mโยฃ2.9bn annually. This is an estimate, not a settled forecast. Hospitality and retail are among sectors likely to feel the greatest impact.
Review zero- and low-hours arrangements: compare contracted, offered and worked hours; assess short-notice changes or cancellations; model staffing and cost effects; keep evidence; and respond by 25 August if relevant.
These proposals are not yet in force. Scope, figures, implementation dates and final rules remain subject to consultation, parliamentary processes and secondary legislation. This is not legal advice; do not change contracts solely because of the consultation.
Sources: https://www.gov.uk/government/consultations/make-work-pay-ending-one-sided-flexibility-reforms-of-zero-hours-and-similar-contracts
https://www.gov.uk/government/publications/rpc-opinion-reforms-of-zero-hours-and-similar-contracts
If you need help reviewing your arrangements, Indie People can help. Would your staffing model cope with more predictable-hours requirements?