Research shows how ERA zero hour protections could impact

Joe McMorrow of Pinsent Masons was commenting following publication of the research by the Work Foundation at Lancaster University, a think tank aimed at improving working life. It revealed that the number of people on zero‑hour contracts in the UK has reached a record 1.23 million. The research, based on ONS data, indicates that this number has increased by 91,000 over the past year and by 181,000 since July 2024, when the current UK government came into office.

• Read more: How the Employment Rights Act will affect you

According to the research, the growth is driven by younger workers aged 16 to 24, who are five times more likely to work on zero‑hour contracts than older workers, as well as individuals who are not in full‑time education. Women are 1.2 times more likely than men to work on zero‑hour contracts.

In 2027, the Employment Rights Act (ERA) will introduce new rights for zero‑hour and low‑hour workers, including rights to reasonable notice of shifts, payments for shifts cancelled, moved or curtailed at short notice, and a right to guaranteed minimum hours. These rights will also extend to agency workers.

McMorrow said that, for employers preparing for the impact of the ERA’s provisions, the findings illustrate the scale of the challenge.

According to the research, nine in 10 zero‑hour workers in 2023 would have qualified for an offer of guaranteed hours under the government’s original proposal of a 12‑week reference period. The Work Foundation also estimated that around one third of workers rely on zero‑hour contracts for full‑time hours, indicating that many workers may welcome a transition to guaranteed hours. The government expects to launch a consultation on these measures shortly. McMorrow said this process will play a critical role in shaping the final rights and obligations under this part of the ERA.

“The rise in worker numbers on zero‑hour contracts may partly reflect the uncertainty employers are facing ahead of the Employment Rights Act coming into force,” McMorrow said.

“Employers should be taking proactive steps now to prepare for implementation. This includes carrying out audits of current working patterns, thinking strategically about future workforce models, and reviewing arrangements with agencies. Any new or changed terms from their agency should be reviewed carefully, so that end hirers fully understand their position. Employers should also actively manage hours worked ahead of the implementation date to reduce the risk of inadvertently creating large pools of workers who qualify for guaranteed hours once the new duties take effect,” he said.

“One of the biggest challenges for employers is that key boundaries for the new rules have not yet been set. For example, we still don’t know what will constitute ‘reasonable notice’ for shift changes and this is important as it is the point at which mandatory compensation will be triggered. The level of those compensation payments has also not been set, which means that employers are being asked to prepare for obligations without knowing where the lines are drawn, and in practice that creates hesitation and risk‑aversion,” McMorrow said.

“Beyond that, the reforms introduce new layers of administrative complexity, including requirements for employers to proactively provide information about some of the new rights to their workforce. Although the roadmap to implementation is broadly helpful, the lack of clarity on the limits of key obligations means businesses are preparing for change without certainty about what compliance will ultimately require,” he added.