Currently, as an alternative to a standard contract, employers can lawfully engage workers using a range of different contracts to allow them to rapidly respond to fluctuations in customer demand. These include:
- Zero hours contracts;
- Minimum hours contracts;
- Agency workers; and
- Fixed term contracts.
Guaranteed Hours
The Employment Rights Bill introduces a new requirement for employers to offer qualifying workers “guaranteed hours” to workers working under zero hours contracts or a low number of minimum hours but work more than those hours in a “reference period” (likely to be a 12-week period).
A guaranteed hours contract will require employers to offer a new or varied contract which must be accepted within a “response period”. They will then begin working under their new or varied contract from the day after they accept. A worker can also reject the offer within the response period.
Non-compliance and claims in the Employment Tribunal
A worker who is not offered hours on the required terms can bring an employment tribunal claim. Workers also have a right not to be subjected to a detriment because they accepted or rejected any offer.
How employers should prepare
The majority of changes will take effect in 2026 and employers should prepare in the following ways:
- Review employment contracts.
- Audit the current workforce.
- Review how a 12-week average calculation would impact zero hours or low hour workers.
- Track seasonal fluctuations in demand for work.
- Review the current use of fixed-term contracts.
- Review the processes for managing requests for work and cancelling shifts.
This new right should also be viewed in conjunction with the future right to reasonable notice of a shift an employee is required to work and the right to reasonable notice of any change or cancelled shift.
Get in contact with an employment lawyer at Rowberry Morris
If you would like advice or need further guidance on this or any employment issue, please contact the Employment Team at Rowberry Morris by phone on 0118 981 2992 or email at employment@rowberrymorris.co.uk, or at rowberrymorris.co.uk/services/employment-law
