Employment Rights Act 2025: guaranteed hours and shift scheduling explained

According to Acas, around 1.2 million people were employed on zero-hours contracts between January and March 2026, accounting for 3.6% of all people in employment. Zero-hours arrangements are particularly common in hospitality, retail, education, and health and social care, making the proposed reforms relevant to a significant number of British employers.

While the Employment Rights Act 2025 became law in December 2025, some of its most significant workforce-related measures are not yet in force. The Act provides for new rights relating to guaranteed hours, reasonable notice of shifts and payment for certain short-notice schedule changes. However, the detailed rules are still being developed through consultation and secondary legislation, with implementation currently expected in 2027.

For employers, that creates a valuable opportunity to prepare. 

One of the biggest risks is treating these reforms as a contract issue alone. In reality, the greater challenge may lie in understanding working patterns, strengthening scheduling processes, and ensuring workforce and payroll data can support future compliance requirements.

The three proposed rights

The reforms are intended to address what the government has described as “one-sided flexibility” in certain variable-hours working arrangements.

Three key rights are expected to be introduced:

• Guaranteed hours: Reflect a qualifying worker’s regular working pattern by offering hours based on those worked during a reference period
• Reasonable notice of shifts: Give workers greater certainty about when they are expected to work
• Payment for short-notice changes: Compensate workers when shifts are cancelled, shortened or moved at short notice 

Although these rights are set out in the Act, important details are still being developed. Employers should avoid making decisions on consultation proposals until the final regulations have been published.

Why these reforms matter

Much of the discussion around these reforms has focused on whether guaranteed hours will reduce flexibility.

For most employers, the bigger challenges are likely to be operational. Many organisations already know they have workers who regularly work beyond their contracted hours. The difficulty is often that this information sits across rota systems, spreadsheets, manager records and payroll platforms, making it difficult to build a clear picture of actual working patterns.

The government’s objective is to improve predictability for workers while preserving flexibility where it genuinely works for both sides. For employers, that means paying closer attention to how hours are allocated, how schedule changes are communicated, and how records are maintained.

A useful question to ask now is: could your organisation clearly demonstrate how and why a worker’s schedule changed if asked to do so?

If the answer is no, this is a good opportunity to review the systems and processes supporting workforce management.

Who could be affected?

Although headlines often focus on the zero-hours contract, the reforms are expected to affect a broader range of working arrangements.

This could include workers on low-hours contracts, casual arrangements, and other variable-hours models in which actual working patterns regularly differ from contracted hours.

For example, a worker contracted for ten hours per week but consistently working 25 to 30 hours may be relevant to future guaranteed-hours provisions, depending on how the final regulations are drafted.

The reforms are expected to be particularly relevant in sectors where flexible working arrangements are already common, including hospitality, retail and health and social care.

Importantly, businesses should not assume that every worker will automatically move onto a fixed-hours contract. Current proposals suggest that qualifying workers may have the opportunity to receive guaranteed hours that better reflect their established working patterns.

Notably, workers are expected to be able to accept or reject these offers, allowing those who prefer more flexible arrangements to retain them while still benefitting from greater certainty where desired. 

What could guaranteed hours mean in practice?

The proposed right to guaranteed hours is intended to provide greater certainty for workers who regularly work consistent hours over time.

However, several important questions remain unanswered, including which workers will qualify, how guaranteed hours will be calculated, and how long any reference period will be.

That uncertainty is why employers should be cautious about making significant contractual changes at this stage.

Instead, organisations may benefit from understanding the gap between contracted and actual hours worked across their workforce. Having that visibility now can help assess the potential impact of the reforms once the final framework is confirmed.

What could change for shift scheduling?

Alongside guaranteed hours, the government intends to introduce new rights to shift scheduling.

Workers are expected to receive reasonable notice of shifts and schedule changes, helping them plan work and personal commitments with greater confidence. The Act also provides for payment where qualifying shifts are cancelled, shortened or moved at short notice.

However, key implementation details remain subject to consultation. This includes what will constitute ‘’reasonable notice’’, when compensation will apply, and how any payments will be calculated.

For employers, these proposals reinforce the value of clear scheduling processes, accurate records and consistent communication with workers.

What could this mean for workforce management and payroll?

Many discussions about zero-hours contract employment rights focus on employment contracts. In practice, the operational implications could be just as significant.

Employers may need better visibility of contracted hours, actual hours worked, shift changes and notice periods provided to workers. Payroll teams may also need confidence that they can support any future payments linked to cancelled, shortened or rearranged shifts.

For many organisations, preparation will be less about rewriting contracts and more about improving workforce data, reporting and record keeping. People First brings HR, workforce management and payroll together in a single platform, giving employers greater visibility of working patterns, contracted and actual hours and scheduling activity. 

What is still undecided?

While the direction of travel is becoming clearer, several important details remain subject to consultation and future regulations.

These include:

• Which workers will qualify
• How guaranteed hours will be calculated
• The length of any reference period
• What will constitute reasonable notice
• How compensation for schedule changes will operate
• How the rules will apply to agency workers and other arrangements

This is why employers should continue monitoring government updates and Acas guidance rather than treating consultation proposals as final legal requirements.

How to prepare now

Although the final regulations have not yet been published, employers can already take practical steps to prepare. Start by identifying workers on zero-hours, low-hours and other variable-hours arrangements, comparing contracted hours with actual hours worked and looking for patterns that may become relevant under the new framework.

It’s also worth reviewing how shifts are offered, changed and cancelled. Can you easily see when a change was made, who approved it and how much notice was provided? Organisations that understand how work is really being scheduled will be better placed to adapt when the new rules take effect.

Finally, assess whether your workforce management and payroll systems capture the information likely to be required in future. Rather than waiting for the final regulations, businesses can start strengthening scheduling processes, improving workforce visibility and ensuring they have reliable data to support future compliance requirements. Organisations with accurate workforce data consolidated in one system are likely to find implementation far easier than those relying on fragmented systems and manual records.

Preparing for change starts with understanding your workforce.

Whether you’re reviewing variable-hours arrangements, strengthening workforce planning or preparing for upcoming employment law changes, People First helps connect the people, process and payroll data needed to make informed decisions with confidence.

Discover People First today and see how connected HR, workforce management and payroll can help your organisation stay compliant, improve efficiency and prepare for what’s next.