What are the rights of employees on zero hour contracts?

'Zero hours contract' is not a legal term. But it's a blanket phrase to describe many casual agreements between individuals and their employer.

With that in mind, a zero hours contract usually involves an employer not being able to guarantee the individual any hours of work, nor a set working pattern.

Zero hour contract rights

Anyone working a zero hours contract has statutory employment rights. There are no exceptions to this.

However, these rights can vary depending on the individual’s employment status (worker or employee), which is determined by the contract and how the working relationship operates in practice.

At this point, you're probably asking something like, "How do the rights of employees and workers differ?"

Let's look at the rights of both employment statuses.

Zero hours contract employee rights

The following rights apply to employees but not to workers:

• Statutory sick pay

• Time off for emergencies involving dependants

• Statutory maternity or paternity leave and pay

• A minimum notice period if their employment is ending

• Statutory redundancy pay

• Protection against unfair dismissal

• The right to request flexible working

Not all of these rights come into play on day one of the employment. Some, such as flexible working, can require a minimum length of service.

Zero hours contract worker rights

And the following rights apply to both employees and workers:

• National minimum wage

• Protection from unlawful deductions from their wages

• Protection from unfavourable treatment if they work part-time

• Statutory minimum amount of paid holiday

• The right to work no more than 48 hours on average per week

• The right to opt out of only working 48 hours on average per week

• Statutory minimum length of rest breaks

• Protection for any whistleblowing

• Protection from unlawful discrimination

It's common for a zero hours contract to give worker status, rather than employee status. Whichever status your staff have in your agreement with them, the relevant rights from above apply.

So, they'll either get the rights in both lists, or just the second list. And this is true when the contract is zero hours, a set number of hours, or a set working pattern.

Changes to the rights of zero hours workers 

Under the Employment Rights Act 2025 stronger protections are to be implemented for workers on zero-hours contracts.  

This includes: 

Guaranteed hours contracts 

Zero-hours, low-hours, and agency workers will have the right to access a guaranteed hours contract that reflects their usual working hours based on a 12-week reference period. For example, if a zero-hours employee has worked 20 hours per week for 12 weeks, they must be offered a contract reflecting 20 hours per week. 

Employers must provide information about guaranteed hours contracts to employees upon starting employment and throughout their tenure, ensuring transparency about eligibility and entitlements. 

Providing reasonable notice of shift changes  

Rather than letting workers know the moment they show up for work, employers will need to give reasonable notice of shift changes. This applies whether the shift is no longer needed or if the shift hours have changed.  

Compensation for cancelling shifts  

Workers will receive compensation for shifts that are cancelled, curtailed, or changed at short notice. The amount of compensation will depend on the notice period provided. 

Employment tribunal claims 

New employment tribunal claims will be created, allowing workers to address issues related to guaranteed-hours contracts and associated information rights. 

The rights and protections under these changes will also apply to low-hours workers, ensuring that employers cannot bypass these rules by slightly increasing guaranteed hours. 

The changes related to guaranteed hours contracts, notice of shift changes, and compensation for cancelled shifts are expected to take effect in 2027. Further details will follow, so it’s important to keep up to date on the latest from the UK government.  

As an employer, to comply with changes to employment law, you will need to review current practices, including the use of zero-hours contracts, and may need to make substantial changes to ensure compliance with the new regulations. 

If you are unsure or worried about how these ERA changes will affect your business, speak to an HR expert at BrightHR today.  

When would you hire workers rather than employees?

It's common for a business to employ both employees and workers.

Hiring a worker can be great for both parties when you don't have a constant demand for staff.

Here are times where you might hire workers:

• Season work, such as Christmas

• You're setting up a new business and want to gauge how many staff you'll need

• After-event work, such as the clean-up that comes after a festival or a large party

• Special events like weddings, functions, and business expos

In jobs where health & safety is a concern, such as a lifeguard or security officer, having workers to call up in the case of staff absence is essential.

Make sure everyone working for you knows their employment status

It's vital that you remember the employment status of everyone you hire.

You should always be open and honest with any of your staff about their employment status. This way, they can find out what rights they have at work.

Make it clear in their contract (if you've given them one) whether they're an employee or a worker. And ensure these contracts are kept updated in line with UK employment law. For compliant HR templates and guides, BrightBase is here to support your growing business.