The Countdown to Guaranteed Hours Has Begun

Please find an article below from our trusted risk and compliance partners, Stallard Kane, supporting businesses with practical, specialist advice across health and safety, HR, training and risk solutions. Their team of experienced consultants and engineers help organisations stay safe and compliant. 

In a significant shift to employment law, the UK government has announced plans to end ‘one-sided flexibility’ with a new requirement for employers to offer qualifying workers guaranteed hours and to provide employees with reasonable notice if they cancel their shifts. This change is one of the most substantial in recent years; we look at how employers and managers can prepare beforehand.

This legal change is scheduled to be introduced in 2027. 

Although these changes won’t come into force until 2027, now is the time to act. Employers will have a duty to compensate workers financially for changes to a shift at short notice, which will have implications for how your organisation manages rotas and shift patterns.Updating your contracts, policies, procedures and trainin now to reflect best practice will ensure a smooth transition when the law does change.

Under current legislation, employers can engage workers using a range of different contracts, allowing them to rapidly respond to fluctuations in customer demand. This includes zero-hour contracts which offer no minimum level of work; in some contracts the individual is obliged to accept work offered, but not in all.

Any exclusivity clause preventing employees from working elsewhere is unenforceable but there are no other restrictions on the use of zero-hour contracts. Additionally, employers may cancel shifts at any notice and are not required to pay employees compensation for cancelled shifts.

Once this change comes into force, zero-hour contracts will be reserved for employees in rare circumstances where employers genuinely cannot provide employees with guaranteed hours (employers must be able to prove this). Guaranteed-hours contracts will be applicable for all other employees.

From 2027 employers will have a duty to make a payment to workers each time there is a change to a shift at short notice, with compensation proportionate to the cancellation or curtailment. This makes planning rotas, shift patterns and assessing business demand in advance more important than ever, to understand what guaranteed hours can be given to employees and to avoid the cancellation of shifts as much as possible.

The first step is to review your existing arrangements.

• Complete a contract audit for all employees to determine your reliance on zero-hour contracts and the work that these employees undertake. If there are any qualifying workers they must be offered guaranteed hours and moved onto a new contract that outlines these guaranteed hours (the hours that they regularly work).

• Where you can offer contracts with a minimum number of guaranteed hours, consider how you could reduce situations where employees are working fluctuating hours above these.

• Review the shift request and cancellation process, to assess whether there are areas for improvement. 

You should train all managers who create and implement rotas to ensure that rotas are planned carefully in advance and that shift cancellations are avoided as much as possible. Further to this, managers should be educated about the new consequences and financial implications of shift cancellations.

Consider how this could be resourced to comply with the requirements. For example, if there are well-established fluctuations in work, it may be possible to use fixed-term workers to meet this demand rather than what would have previously been zero-hour contracts.  

By the time this legislation takes effect, employers will be expected to already be operating to these higher standards. Preparing now gives your business time to embed stronger practices, train managers and ensure that by 2027 you’re not just compliant but confident in how you manage employees’ guaranteed hours and their shift patterns.

In the meantime, if you have any questions or need further assistance, please don’t hesitate to contact your designated HR Advisor. We're here to help.

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The information and any commentary contained within these updates are for general information purposes only and do not constitute legal or any other type of professional advice. Stallard Kane does not accept and, to the extent permitted by law, exclude liability to any person for any loss which may arise from relying upon or otherwise using the information contained in these blogs. If you have a particular query or issue, you are strongly advised to obtain specific, personal advice about your issue and not to rely solely on the information or comments in these updates.