Zero-hours contract changes in 2027: what employers should know

By Luke Arnold, Lead Consultant · 3 min read · Updated 24 September 2026

Zero-hours contracts are not being banned. The Employment Rights Act 2025 is expected to introduce new rights for eligible workers in 2027, including offers of guaranteed hours that reflect regular working patterns. Employers can use the time before implementation to understand their real hours and improve rota records.

The government’s timeline identifies a right to guaranteed hours, reasonable notice of shifts and short-notice cancellation payments among the 2027 changes. It says timing will be updated after consultation. The new zero-hours measures are not yet in force. Current contracts and legal duties continue to apply in the meantime.

What changes are planned?

Now

Current zero-hours contracts remain lawful. Existing rights and contract terms still apply; new guaranteed-hours rules are not yet in force.

Expected in 2027

Guaranteed-hours offers, reasonable shift notice and payments for some late cancellations or changes. Detailed rules are pending.

The Act provides for eligible workers on zero-hours and certain low-hours arrangements to receive an offer of guaranteed hours reflecting their working pattern over a reference period. A worker can accept or reject an offer. Workers will also have rights relating to reasonable notice of shifts and changes, and payments in specified situations when shifts are cancelled, moved or curtailed at short notice. The rules are expected to cover some agency workers too.

The reference period, notice standards, payment calculations and other practical details depend on regulations. Employers should avoid treating proposed implementation detail as settled until final regulations and official guidance are published.

What are the current rules?

A zero-hours contract generally means the employer does not guarantee work. The label does not decide whether someone is legally a worker or an employee; status depends on the real relationship and affects some rights. Zero-hours arrangements do not remove statutory rights, and exclusivity clauses are already prohibited for workers on zero-hours contracts.

Are zero-hours contracts being banned?

No. The planned change is a right for eligible workers to be offered guaranteed hours that reflect their regular work, plus rules about shift notice and cancellation payments. Employers can still use genuinely variable arrangements where they fit the work, while meeting current employment responsibilities.

Current GOV.UK guidance says employers should give as much notice as possible when offering work, avoid last-minute cancellations and be clear about why work might be cancelled and what compensation may be available. Regular predictable hours may be better reflected in a part-time, fixed-term or annualised-hours arrangement.

How can an employer prepare now?

Map variable-hours arrangements. Identify zero-hours, low-hours, casual and agency arrangements across each site and business unit. Confirm who employs each person and who controls scheduling.
Review actual working patterns. Keep accurate records of hours offered, accepted, worked, changed and cancelled. This will help you understand regular demand and assess future guaranteed-hours obligations when the final reference period is known.
Check whether the contract matches reality. Review written terms, the process for offering shifts, the ability to turn work down and how managers use the arrangement. Avoid relying on a contract label where the day-to-day pattern points to something different.
Look for predictable staffing needs. Compare rotas with actual hours over time. Where demand is regular, consider whether contracted part-time hours, annualised hours, fixed-term cover or overtime would be more suitable.
Improve rota planning and communication. Set a clear process for publishing shifts and communicating changes. Record why changes happen and how affected workers are informed.
Brief the people who schedule work. Managers need a consistent approach to shift offers, cancellations, record keeping and worker questions. Update the process once final guidance is available.

Questions to ask about your business model

Which roles have predictable hours despite variable-hours contracts?
How far ahead can the business publish reliable rotas?
How often are shifts cancelled, shortened or moved?
Do managers use a consistent, recorded process to offer work?
Which roles could use annualised, fixed-term or part-time hours?
Who will check new regulations and update contracts and systems?

These changes are being developed for Great Britain; employment law in Northern Ireland is separate. Do not assume that zero-hours contracts are already prohibited or that new guaranteed-hours rights are currently in force. Plan from your real staffing data, communicate clearly with workers and review the final regulations when published.

Read the current GOV.UK guidance for employers using zero-hours contracts and the Employment Rights Act implementation timeline. For roles where working patterns are becoming regular, our guide to choosing the right working arrangement can help you compare options. We help employers review contracts, rota practices and workforce policies as their needs change. Use the consultation form below to talk to our HR team.