First published on Friday, July 24, 2026
Last updated on Friday, July 24, 2026
The Employment Rights Act 2025 is bringing changes to zero hours contracts in 2027. Here are some employer FAQs:
What are the zero hour contract changes?
From 2027, employees will have the right to:
Guaranteed hours: Workers will gain a legal right to a contract that reflects the actual hours they work
Shift cancellation compensation: If you cancel a shift at the last minute, you pay for it. No more "sending people home" for free
Predictable notice: A requirement to provide shift patterns further in advance, ending the "on-call" culture
Working time requests: Enhanced rights for staff to request more stable patterns without fear of losing work
When are zero hour contracts changing?
Although the exact date hasn’t been published by the government, you should get ahead of the changes. Yes, zero hour contracts are still legal, but preparing now will save you money and potential reputational damage if you’re found to be breaching the new rules.
Why do I need to change zero hour contracts if the law isn’t changing yet?
This is an opportunity to build loyalty and staff retention. The uncertainty of a zero hour contract can have a significant effect on mental health, leading to employee burnout and higher turnover. High staff turnover is more expensive in the long run, as every new recruit costs more than £30,000.
And predictable rotas don’t just help staff with financial and scheduling strain. With a more fixed schedule, you can budget better and plan ahead.
What should I do now?
Start recording the hours your zero hours, low hours, and casual staff are doing now. Then, you can offer guaranteed hours in 2027 that match their current hours.
And change your operations now, so you get your shifts sorted well in advance and avoid the “last minute shifts” penalty.
How BrightHR can help:
With a document library of 400+ contracts, policies and handbooks, BrightHR clients can download legally compliant and up to date employment documents. So, when the changes come in, you can access the updated documents you need.
BrightHR software includes unlimited document storage, so you and your employees can access all employment documentation. And this includes alerts and read receipts, so when your policies and contracts change, you can ensure your employees have been made aware of them.
Shifts and rotas software helps you to plan and budget for shifts effectively. And if someone calls in sick, you can instantly notify staff of a last-minute open shift.
You can access 24/7, UK-based employment law advice from BrightHR. So, if you employ workers on a zero hours contract, you can get advice on staying compliant with the new laws. And, our friendly experts can review your current documentation to check you’re up to date with changes to sick pay, parental leave, and unfair dismissals.
