What is going on with zero-hour contracts?

Impact of zero-hours consultation on hospitality operators
Review required: operators have been urged to review their existing workforce models against consultation themes (Getty Images)

As the Government launches a consultation paper on new protections for zero and low-hour workers, employer solicitor Lydia Button lays out what this means for operators.

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The consultation signals the beginning of potential changes to the way variable hours are offered and managed across the employment landscape and follows the government’s manifesto commitments to strengthen worker rights, including:

  1. potential entitlements to guaranteed hours;
  2. reasonable notice of shifts and changes to shift patterns; and
  3. payment for cancelled or curtailed shifts at short notice.

Hospitality relies heavily on flexible staffing to meet fluctuating demand, seasonal peaks, and late-notice events. Zero and low-hour arrangements are common across this industry.

The consultation focuses on improving security and predictability for workers in such arrangements while retaining workable flexibility for employers, however the sector’s operating model means the impact could be significant.

Consultation outcome

The final detail of such reforms will depend on the outcome of the consultation and subsequent legislation however operators should expect closer regulation of how variable hours are scheduled and changed. Themes include entitlements linked to actual working patterns, greater advance notice of shifts, and compensation where late changes occur.

Any new framework is likely to affect day-to-day operations. Areas to assess now include how rotas are designed and communicated, whether staffing models can absorb notice periods and late-change costs, how agency workers are engaged and briefed, as well as payroll processes and contract documentation.

Clear, contemporaneous records will be essential to demonstrate compliance. Operators should ensure they can reliably capture and retrieve evidence of shift offers, acceptances, cancellations, the timing of notices, and reasons for any changes.

Early preparation

Operators should review their existing workforce models against the consultation themes and identify pressure points, review the consultation document in full, and consider submitting a response to ensure hospitality realities are captured. The timing of any new obligations will depend on the legislative process however, preparation now will reduce disruption later.

Please note that this article provides general information only and does not constitute legal advice. Readers should review the Government consultation document directly and take specific advice on how any final measures apply to their business.