Government launches consultation on zero-hour and low-hour contract reforms
The government has published a long-awaited consultation proposing significant reforms to zero-hour and low-hour contracts. The initiative aims to tackle what ministers describe as “one-sided flexibility”—where employers retain the freedom to call on workers without notice, while employees face unpredictable incomes and impossible childcare planning.
The consultation, running for 12 weeks, puts forward three core proposals. First, a right for all workers on irregular contracts to request a guaranteed hours contract reflective of the shifts they consistently work, typically over a nine-week reference period. Second, a statutory requirement for “reasonable notice” of shift schedules, with potential compensation for last-minute cancellations. Third, the introduction of a new enforcement regime, empowering a strengthened Fair Work Agency to issue penalties for non-compliance.
The response from business groups has been cautiously measured. The British Chambers of Commerce welcomed the consultation’s focus on voluntary agreements and reference periods but warned that rigid mandates could “stifle the very adaptability that keeps sectors like hospitality, retail, and social care afloat.” Unions, meanwhile, argue the proposals do not go far enough; the TUC is pushing for an outright ban on zero-hour contracts except for genuine temporary cover.
Crucially, the consultation also addresses low-hour contracts. The government proposes similar rights for these workers, preventing employers from circumventing reform by offering nominal base hours while still demanding near-full availability.
If enacted, the changes would affect an estimated 1.5 million workers across the UK. With submissions open until 25 August 2026, the coming months will determine whether Britain’s flexible labour market is redesigned for resilience—or left to wait for the next round of consultation.
