The UK Government is currently consulting on proposals aimed at ending exploitative zero-hours contracts (ZHCs). This initiative seeks to address the risks of unpredictable hours and income faced by workers on variable-hours contracts.
A key element of the Government's plan is to introduce a right to guaranteed hours, which would apply to individuals on ZHCs, agency workers, and those on 'low' hours contracts. This right would be assessed over a reference period, likely twelve weeks. The Government's preferred definition for 'low' hours is between eight and twenty hours per week.
Additionally, the Government is considering a "regularity" test, which would mean the right to guaranteed hours would only apply if a worker consistently works across the reference period. Two options for this test are outlined in the consultation, with one being stricter by requiring a minimum number of hours above contracted hours.
Further rights under consideration include reasonable notice for shifts and compensation for short-notice cancellations. In 2023, 73% of variable-hours workers received less than two weeks' notice for shifts, and 54% received less than a week. The Government is exploring options such as 100% compensation for shifts cancelled with less than 24 hours' notice.