Zero Hours Contracts Explained: Your Rights to Guaranteed Pay and Notice Periods

Zero hours contracts offer UK workers flexibility but often create income uncertainty, with no guaranteed minimum pay despite statutory protections for holiday, sick pay, and National Minimum Wage on hours worked. Recent Employment Rights Act 2025 reforms mandate shift notice periods and reasonable pay for cancellations, strengthening worker rights amid 1 million+ zero hours workers in hospitality, retail, and care sectors. Understanding these rules empowers employees to challenge exploitative practices through ACAS early conciliation or tribunals.​

What Is a Zero Hours Contract?

Zero hours contracts guarantee no fixed hours—employers offer shifts as needed, workers accept or decline without penalty. Common in pubs, delivery, social care (25% workforce), they provide flexibility for students/parents but risk unpredictable earnings averaging £200-£400 weekly for frequent shifts.​

Key features:

• No obligation to accept work offered.

• Paid only for hours actually worked.

• Employment status typically “worker” (not always employee).

• Eligible for NMW (£12.21/hour age 21+ from April 2025), holiday pay (12.07% accrual), auto-enrolment pension.

Employers cannot mandate exclusivity unless reasonable (e.g., shift conflicts).​

Your Right to Guaranteed Pay

No statutory minimum hours, but protections apply per shift worked:

Sleep-ins/care shifts qualify as “working time” per Supreme Court. Unpaid travel between clients illegal.​

Notice Periods: Who Owes What?

Notice rules split by status—most zero hours workers owe none:

• Workers (majority): No statutory notice required to quit; employers cannot demand shifts during any contractual notice. Decline freely.​

• Employees (rarer, regular hours): Statutory minimum—1 week after 1 month; 1 week/year up to 12 weeks max.​

Employer termination: Same rules apply. Contracts specifying 4 weeks unenforceable for workers—law trumps. Give polite notice anyway to preserve references.​

2025 Employment Rights Act Changes (effective 2027):

• Minimum 2-7 days shift notice (regulations pending).

• Cancellation pay if < defined notice (pro-rata wages).

• Pattern tracking over 12 weeks for unfair patterns claims.​

Holiday Pay Calculations for Irregular Hours

Accrual simplified April 2024: 12.07% of all pay (including overtime/commissions) each pay period. Example: £300 week = £36.21 holiday pot.

• Rollover: Carry forward 4 weeks unused (16 max).

• Payment: On leaving or separate shifts.

• Sleepover shifts: Hourly rate x hours.

Tribunals award back pay 2-3 years unlawfully withheld.​

Exclusivity Clauses and Shift Flexibility

Banned since 2015 unless justified—cannot work elsewhere if no shifts offered last 12 weeks. Challenge via ACAS if enforced.

Right to reasonable shift notice (2027): Employers must plan rosters; last-minute demands challengeable.

Refusing shifts: No disciplinary action; patterns of refusal may justify termination if genuine casual need exists.​

National Minimum Wage Violations

Common breaches: unpaid breaks, travel, uniform costs. Claim via HMRC (6 years back) or tribunal.

• Evidence: Payslips, rotas, WhatsApp shifts.

• Average award: £1,000-£5,000 + interest.

• Restaurants/shops frequent offenders.

Hotline: 0800 917 2368.​

Employment Status: Worker vs Employee Rights

Test: Mutuality of obligation? Personal service? Control? Regular patterns lean employee.

IR35 off-payroll rules apply for contractors.​

Termination and Ending Zero Hours Contracts

• Worker: Verbal end suffices; no notice owed.

• Employee: Statutory notice applies.

• Garden leave rare (no shifts anyway).

Dismissal claims: Discrimination always unlawful; detriment for union/parental rights. 3 months ACAS conciliation.​

2025 Reforms: Employment Rights Act Impact

Major changes rolling out:

• Shift notice: 2+ days minimum; short-notice pay.

• Predictable patterns: Right to regular hours after qualifying service.

• Fire and rehire: Harder, consultation required.

Agency workers gain parity protections.​

Common Employer Mistakes

• Paying sleep-ins flat rate (must pro-rata NMW).

• Clawing back uniform costs below NMW.

• Exclusivity without shifts offered.

• No holiday pay statements.

ACAS audits rising post-GMB union wins (£10M+ backpay).​

Claiming Your Rights: Step-by-Step

1. Document: Payslips, shifts, communications.

2. Raise informally: HR/grievance.

3. ACAS Early Conciliation: Free, 1 month (extends time limits).

4. Tribunal: No fees; £20K+ awards common.

5. HMRC NMW: Anonymous arrears.

Success rate 70%+ defended claims.​

Resources for Zero Hours Workers

• ACAS Zero Hours Guide​

• Gov.uk Employment Status Checker

• GMB Union free advice.