Copy of Zero-Hours Contracts Crackdown: What You Need to Know
Guidance from an HR consultant in St Albans, supporting businesses across London, on the government's crackdown on zero-hours contracts.
This is an update to our earlier guide to the 2027 zero-hours contract reforms.
If your business uses zero-hours contracts, the way you staff it is about to change.
The government is cracking down on zero-hours contracts. It wants to ban "exploitative practices" and move the balance in the workplace back towards the worker.
A consultation on how the rules will work in practice closed in August 2026. Some of the detail is still being finalised, but the direction of travel is clear. If you rely on zero-hours workers, casual arrangements or bank staff, now is the time to start planning.
What has been confirmed
Three changes have been confirmed.
1. A duty to offer guaranteed hours
You will need to offer guaranteed hours based on what a person actually works over a set reference period. If a worker regularly puts in the same hours for you, you must offer a contract that reflects them. The worker is free to turn the offer down, but you have to make it.
2. Reasonable notice of shifts
Workers must be given reasonable notice of their shift times and of any changes to the schedule, instead of being told at the last minute.
3. Compensation for short-notice cancellations
If you cancel or shorten a shift at short notice, you will have to pay compensation. How much, and what counts as short notice, are still to be confirmed, but the obligation itself is written into the new rules.
The rules will also apply to agency workers. If you use temporary staff through an agency, responsibility for guaranteed hours offers will be shared between you and the agency.
What is still being decided
The consultation focused on the practical mechanics, and several important details remain open:
Reference period: expected to be 12 weeks, although the government also asked for views on 26-week and 52-week alternatives.
Low-hours threshold: a threshold will decide which contracts are in scope. The government's preference is somewhere between 8 and 20 hours per week, but the final figure has not been set.
Mean or median: it has not been confirmed whether the calculation will use mean or median hours worked.
Start date: the exact date in 2027 is still to be set through secondary legislation.
How to prepare before the rules arrive
Waiting for every detail to be confirmed is a gamble. The broad shape of the changes is clear, and businesses that leave preparation until the last minute will find it hardest to adjust. Here is where to start:
Audit your zero-hours and casual workforce. List everyone who is not on a guaranteed-hours contract and look at the hours each person has actually worked over the past 12 weeks. If you can see consistent patterns, those workers are very likely to be in scope.
Work out who would qualify. If any of your casual or zero-hours staff regularly work above a certain number of hours each week, they will probably be entitled to a guaranteed-hours offer once the rules come in.
Review your contracts. Existing zero-hours contracts will need updating to reflect the new shift notice and cancellation compensation rules. You will also need a template ready for guaranteed-hours offers when they are required.
Think about the operational impact. If a significant portion of your flexible workforce ends up on guaranteed hours, that changes how you manage rotas and budget for staffing. Work out what that looks like while you still have time.
Get ready with Progressive HR Solutions
An HR consultant can run through your current arrangements, work out who is likely to be affected and get your contracts and processes updated before the rules take effect.
Progressive HR Solutions is an HR consultancy in St Albans supporting employers across London. If you use zero-hours workers in any form, get in touch and we can talk through what needs to change.
This article is general guidance based on the position at the time of writing and is not a substitute for legal advice on your specific circumstances.
