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Under the Employment Rights Act 2025, employers must offer qualifying zero or low-hour workers guaranteed hours contracts reflecting the hours they have worked over a reference period. The provisions are not yet in force. The government consultation on the detail of how the right will operate closes on 25 August 2026.
The right to a guaranteed hours contract will apply to workers on zero-hour contracts and workers with guaranteed hours below a threshold level who regularly work extra hours. If qualifying workers work sufficiently regularly over a reference period, employers will have to offer them a guaranteed hours contract reflecting the hours worked. Similar rules will apply to agency workers, with hirers being responsible for making an offer in most cases.
The detail will be contained in regulations. The government’s “Ending one-sided flexibility” consultation paper gives the first indication of how widely the duty will apply. This summary focuses on the implications for directly engaged workers.
A key issue is what the threshold number of hours for low-hour contracts should be. If a worker is guaranteed at least that number of hours, they will be out of scope for a guaranteed hours offer, even if they regularly work additional hours. The government’s preference is to set the threshold between eight and 20 hours per week, although it is considering a wider range of options and asks for views on the appropriate level.
The length of the reference period and the hours worked during it will be relevant to whether an employer has to make a guaranteed hours offer and if so for how many hours. The government’s preference is for an initial 12 week reference period. If a worker does not qualify for an offer after the first reference period, or refuses an offer, the employer will have to reassess the position in subsequent reference periods.
The government suggests that subsequent reference periods could last longer, for example 26 or 52 weeks to reduce the administrative burden on employers, although does not have a fixed view on the point. There could also be gaps between reference periods. Employers would not need to record hours worked during a gap and they would be irrelevant to subsequent reference periods.
Employers will only have to make guaranteed hours offers to staff working with sufficient regularity during the reference period. The government suggests that someone would have to work in at least a set number of weeks to meet the regularity requirement – for example working at least eight weeks in a 12 week reference period. The consultation asks what the appropriate frequency should be.
The government is also considering whether in scope workers on guaranteed hours contracts would need to work a minimum number of hours in a reference period in addition to normal hours before qualifying for an offer. That would allow workers to do a small amount of overtime during a reference period without triggering a guaranteed hours offer. The government asks what additional hours requirement might be appropriate, suggesting less than 48, 48, 72 or 96 hours over the reference period.
If an employee qualifies, the employer must make them a guaranteed hours offer reflecting the hours they have worked during the reference period. The consultation asks whether this should be calculated using the mean or median hours worked.
The consultation also raises questions about how the new rights to reasonable notice of shifts and compensation for shifts that are moved or cancelled at short notice will operate.
Authored by Jo Broadbent and Stefan Martin.