Proposed Employment Bill Amendments: What you need to know about zero-hour contracts

Sophie Robertson

The Employment Rights Bill continues to evolve, with several recent amendments proposed. While these changes are not backed by the government and are therefore unlikely to pass, they reflect the ongoing debate around workers’ rights and employer obligations. The key proposed amendments in respect of Zero Hour Contracts include:

1. Right to request guaranteed hours:

The original proposal required employers to automatically offer guaranteed hours reflecting a worker’s usual pattern over a 12-week reference period. A new proposed amendment shifts the obligation. Instead of an employer-led offer, workers would now have the right to request guaranteed hours. This would bring the system in line with the flexible working regime—placing the onus on workers to initiate a request and employers to consider these requests. The right to make a request would only apply where a worker averages at least eight hours per week over a rolling 26-week period—excluding those on very low or irregular hours.

2. Short-Notice shift cancellation payments:

Under the current proposal, employers must compensate workers when shifts are cancelled or curtailed at short notice. A proposed amendment now defines “short notice” as less than 48 hours before the shift is due to start. If more than 48 hours’ notice is given, no payment will be required under section 27BP. This change provides employers with greater clarity and reduces financial exposure.

3. Agency workers’ pay parity:

A new provision (paragraph 2A of Schedule A1) has been proposed, which would require that any offer of guaranteed hours to an agency worker must include pay terms no less favourable than those received during the reference period while working under the hirer’s supervision.

The employer must match either:

• the most favourable pay rate the agency worker received during that period; or
• in limited cases, a lower rate that can be objectively justified as a proportionate means of achieving a legitimate aim.

4. Secretary of State’s Exemption Power:

Currently, the bill sets out the exceptions to the duty to make a guaranteed hours offer and sets out when the guaranteed hours offer is to be treated as having been withdrawn. A proposed amendment has been made that explicitly requires the Secretary of State to balance worker benefits against exceptional employer hardship when exercising this exemption power under paragraph 4(6) of Schedule A1. It introduces a non-exhaustive list of factors that must be considered.

If you need support reviewing your zero-hour contracts or implement changes across your organisation to balance the risks that may arise, our Employment Team is here to help.

Contact Bermans Head of Employment, Adrian Fryer.