Zero-hours contract reforms 2027: what employers must do now
Guidance from an HR consultant in St Albans, supporting businesses across London, on the 2027 zero-hours contract reforms and what employers should do now.
Many employers have relied on zero-hours arrangements for years because they offer flexibility, and few have questioned them.
That is about to change. The government has confirmed zero-hours contract reforms for 2027 that will reshape how casual work operates in the UK.
The consultation closed in August 2026. A few details are still being settled, but the overall direction is fixed and the rules are expected to start at some point in 2027.
As an HR consultant based in St Albans and working with employers across London, I am already helping clients prepare. Here is what you need to know.
What the reforms will require of employers
Three obligations have been confirmed, and each one affects how you manage anyone who works for you on a casual or zero-hours basis.
A duty to offer guaranteed hours
Where someone works a steady pattern of hours over a set reference period, you will have to offer them a contract that reflects it. They can turn the offer down, but the obligation to make it rests with you.
If a person is effectively working for you every week, an open-ended casual arrangement will no longer be a safe option.
Reasonable notice of shifts
Workers must be told their shift times with reasonable notice. Rotas that are rewritten at the last minute, or shifts moved without proper warning, will fall foul of the new framework.
Payment when shifts are cancelled or cut short
Cancelling a shift or shortening hours at short notice will mean paying compensation. The amount, and what counts as short notice, are still being finalised, but the principle itself is settled.
These duties also reach agency workers. If you use temporary staff supplied by an agency, responsibility for offering guaranteed hours will be shared between you and the agency.
What is still undecided
Following the consultation, several practical points remain open. The options on the table give a good indication of where things are heading:
Reference period: 12 weeks is the expected length for working out someone's usual hours, although 26 and 52 weeks were also put forward. The final choice decides how quickly a casual worker qualifies for an offer.
Minimum hours threshold: contracts below a certain weekly figure will sit outside the rules. The government has pointed to somewhere between 8 and 20 hours, with no final number published.
Method of averaging: whether typical hours will be calculated using the mean or the median.
Start date: the exact date in 2027 will be set through secondary legislation.
Why waiting for the final detail is a mistake
It is tempting to hold off until everything is confirmed. The shape of the reforms is already clear enough to act on, and employers who leave preparation until the rules arrive will find the adjustment far harder.
The financial effect could be considerable. If many of your flexible workers move onto guaranteed hours, your labour costs become more fixed, rota planning changes and budgets need rethinking.
The earlier you understand what that means for your business, the more room you have to respond.
Four steps to take now
List everyone on casual or zero-hours terms. Record the hours each person has actually worked over the last 12 weeks and look for patterns. Someone who regularly works around 15 hours a week is very likely to be covered.
Work out who is likely to qualify. Compare those patterns with the expected 8 to 20 hour threshold range. Anyone consistently working above it will probably be owed an offer, and knowing that now avoids a scramble later.
Review your contracts and paperwork. Existing zero-hours contracts will need to cover shift notice and cancellation pay, and it helps to have a template guaranteed-hours offer ready to issue. Contract reviews like this are a regular part of my HR consultancy work in St Albans and London.
Model the cost and operational impact. Consider how your staffing would cope if several flexible workers moved to guaranteed hours, how easily you could scale up or down, and what it would do to your wage bill in quiet periods. Running the scenarios now gives you time to adapt.
Questions to ask yourself
Do you know exactly how many people work for you on zero-hours or casual terms today?
Could you produce their actual hours for the past 12 weeks if asked?
Are your contracts written in a way that can take in the new notice and compensation rules?
How would your budget change if your most regular casual staff moved onto fixed hours?
If you use agency staff, have you agreed with the agency how shared responsibility for guaranteed hours will work?
For more on how pay rules are changing, read our guide to the UK salary transparency consultation.
Support from a St Albans HR consultant covering London
I help business owners review their workforce arrangements, identify who is likely to be affected and update contracts and processes well before the deadline.
Starting early gives you more choices, whereas waiting for the final regulations means reacting under pressure.
Based in St Albans and working with employers across London, I offer practical, commercially minded outsourced HR support without overcomplicating things. If you use zero-hours, casual or bank workers in any capacity, 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 legal advice. Details may change when the final regulations are published.
