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UK Launches Consultation to Curb Zero‑Hours and Low‑Hours Contracts

Ministers say the plan would force employers to offer guaranteed weekly hours to regular staff based on a short reference period and so reduce unpredictable scheduling.

Overview

  • The government published the consultation on Tuesday proposing guaranteed minimum weekly hours for qualifying workers, with a preferred baseline of between 8 and 20 hours and a 12‑week reference period to set those hours.
  • The proposals would also require employers to give reasonable notice of shifts and to pay compensation when shifts are cancelled, moved or shortened at short notice, with some media reports citing possible compensation levels of up to 80% of lost earnings as an option under discussion.
  • Unions said the 8–20 hour cap and 12‑week test fall short of manifesto commitments and would leave many workers without security, while retailers, hospitality and trade bodies warned a reference period under 26 weeks could force them to cut seasonal and entry‑level roles.
  • The consultation, open until 25 August 2026, is still shaping policy details and supporters say it will end exploitative scheduling for over one million zero‑hours workers, but businesses warn firms may shift to fixed‑term contracts, agency staff or self‑employment to preserve flexibility.
  • If moved to legislation, ministers and industry sources have discussed implementation early in 2027, and the final rules will turn on feedback about thresholds, the reference period and the precise notice and compensation rules.