The Government has unveiled further details of its plans to give workers on zero and low-hours contracts greater certainty over their working patterns, despite warnings from businesses that the reforms could harm employment prospects for younger workers.
Under proposals published this week, employees who regularly work more hours than their contracted amount could become entitled to a contract reflecting those hours after an initial 12-week period. The Government said its preferred approach is to provide workers with a guaranteed baseline of hours, offering more security and predictability over earnings.
The new right would apply to workers on zero-hours contracts and those on low-hours arrangements. Ministers are considering setting the low-hours threshold between eight and 20 hours per week.
The measure forms part of Labour’s wider package of employment reforms and aims to deliver its pledge to end what it describes as exploitative zero-hours contracts. Supporters argue the changes will help workers budget more effectively and provide greater financial stability.
However, significant details remain unresolved. Questions around how guaranteed hours will be calculated, how seasonal work will be treated and what happens after the initial 12-week assessment period are still under consultation.
Business groups have raised concerns that the proposals could create difficulties for sectors such as retail and hospitality, where staffing requirements fluctuate throughout the year. Employers argue that a 12-week reference period may not accurately reflect seasonal demand, potentially forcing businesses to guarantee hours that are no longer needed.
The consultation remains open until August. While the proposed Fair Work Agency could enforce compensation for cancelled or altered shifts, workers seeking guaranteed hours would still need to pursue claims through employment tribunals.
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