By Jo Seery, Professional Support Lawyer
The government has published guidance for employers on the use of zero-hours contracts. Publication of the guidance comes just days after the government consulted on new measures to introduce guaranteed hours, reasonable notice of shifts and payment for cancelled shifts under the Employment Rights Act 2025.
The guidance is on the law as it currently stands and reiterates that, while zero-hours contracts remain lawful, they do not exempt employers from providing workers with their statutory employment rights. Everyone working under a zero-hours arrangement is entitled to legal protections, with the precise rights depending on whether they are classed as a worker or an employee.
The guidance acknowledges that zero-hours contracts can offer flexibility in situations such as seasonal demand, covering staff absences or responding to fluctuating workloads. However, under the heading “When employers should not use zero hours contracts” it stresses that they may be inappropriate where work is regular and predictable over an extended period. In such cases, employers are encouraged to consider more secure arrangements, such as permanent part-time or fixed-term contracts.
Employers are also reminded of the importance of being transparent when offering zero-hours contracts. The contract should make clear whether they are an employee and what legal rights they are entitled to. Zero-hours workers not just employees are entitled to a statement of particulars as per s. 1 of the Employment Rights Act 1996. This must contain minimum statutory information including the date employment began, the rate of pay or how it is calculated and when it will be paid; the hours of work and if they are variable how they vary; entitlement to holidays and holiday pay, and other terms relating to sickness, other leave, pensions and the notice period terminating the contract.
The guidance also gives some recommendations on best practice which more reflects the government's proposals to end one sided flexibility, including giving as much notice as possible both when work is offered and when it is cancelled including when compensation may be available.
Why it matters:
While the guidance is not legally binding, it does have the benefit of simplicity and signals the government’s continued focus on reducing insecure work. Unions may find the guidance useful to encourage good employers to apply best practice now in anticipation of a more detailed statutory scheme.
