Operators Urged To Respond To Zero Hours Consultation

UKHospitality is urging operators to make their voice heard in the Government’s consultation on changes to zero hours contracts and shifts under the Employment Rights Act.

Core Proposals in the Consultation

• Guaranteed Hours: Employers must offer regular zero-hours or low-hours workers a guaranteed contract reflecting hours worked during a reference period (the government’s preferred reference length is 12 weeks.
• Hours Thresholds: The consultation explores setting a low-hours weekly threshold—ranging between 8 and 48 hours, with a preferred sweet spot of 8 to 20 hours—to determine who qualifies for guaranteed offers and notice protections.
• Reasonable Notice: Workers on zero or low-hours contracts must receive adequate, timely notice of shift rosters and alterations to shift start or end times.
• Short-Notice Compensation: Employers are required to provide proportionate financial compensation for shifts that are cancelled, moved, or cut short unexpectedly.
• Inclusion of Agency Workers: The rules extend protections to agency staff to prevent businesses from exploiting temporary labour loopholes.

The live consultation is seeking views on proposals that will oblige businesses to offer guaranteed hours contracts to eligible employees on zero hours contracts, provide reasonable notice of shift patterns and introduce compensation for cancelled or changed shifts.

While its response continues to be finalised, UKHospitality will be making clear that:

• The proposals as they stand will act as a barrier to the number of jobs and hours offered by hospitality businesses. This risks increasing job instability, as opposed to the Government’s stated aims of providing more certainty for employees.
• Given the extreme financial pressure facing hospitality businesses and the increased and costly administrative burden from the proposed changes, implementation should not commence before October 2028.
• The threshold at which a worker is eligible for guaranteed hours contracts should be set at eight hours per week or fewer, to genuinely reflect low hours.
• To be eligible, workers must work regularly – at least 10 out of every 12 weeks and at least 20% more than their contracted hours.
• The reference period for guaranteed hours should be sufficiently long enough to account for seasonal trading, set at either at 26 or 52 weeks.

Hospitality operators are encouraged to respond to the consultation, which can be found here, ahead of the deadline on Tuesday 25 August. UKHospitality members can be supported with further guidance available on the UKHospitality website.

Allen Simpson, Chief Executive of UKHospitality, said: “One of hospitality’s defining qualities is its ability to offer anyone the opportunity to work, regardless of their background, qualifications or circumstances.

“There are many significant changes to employment law as part of the Employment Rights Act but how zero hours contracts and shifts will be managed in the future is undoubtedly one of the most significant.

“If Government does not get this right, it risks creating barriers to employment, particularly for young people, and restricting the ability of businesses to adapt to their customers’ needs.

“UKHospitality has been undertaking an extensive consultation with its members to ensure that our response is reflective of the entire hospitality sector, but it’s critical the Government hears from individual operators, too.

“I would encourage all operators to respond to this important consultation to make their voice heard.”