Zero hours contracts have been one of the most controversial areas of UK employment law for many years. Supporters argue they offer flexibility for businesses and workers alike. Critics, however, say they create financial insecurity and allow unfair working practices.
Following the introduction of the Employment Rights Act 2025, many employers and workers across England and Wales are now asking the same question: are zero hours contracts still legal in 2026?
The short answer is yes. Zero hours contracts remain lawful in 2026. However, major reforms are changing the way these arrangements operate and significantly increasing protections for workers. The government has made clear that it intends to restrict what it describes as “exploitative” zero hours practices rather than banning flexible working arrangements altogether.
At Blackstone Solicitors, our employment law solicitors advise employers and employees throughout England and Wales on zero hours contracts, workplace disputes and Employment Tribunal claims. This article explains the legal position in 2026, what reforms are coming into force and what businesses should do now to prepare.
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What Is a Zero Hours Contract?
A zero hours contract is an arrangement where the employer is not required to provide a minimum number of working hours and the worker is generally not obliged to accept every shift offered.
These contracts are commonly used in sectors where staffing demand fluctuates, including:
- Hospitality
- Retail
- Healthcare
- Warehousing
- Events and leisure
- Social care
- Seasonal industries
For some workers, zero hours arrangements offer flexibility and convenience. Students, carers and individuals seeking supplementary income may prefer variable hours.
For others, however, the lack of guaranteed work can create uncertainty and financial pressure.
Are Zero Hours Contracts Still Legal in 2026?
Yes.
Zero hours contracts remain legal throughout England and Wales in 2026. The Employment Rights Act 2025 does not ban them outright.
However, the legal landscape is changing significantly.
The government’s reforms are designed to reduce what it calls “one sided flexibility”, where employers retain complete control over working hours while workers carry most of the financial risk.
As a result, businesses relying heavily on casual labour may need to change how they schedule shifts, manage rotas and structure contracts over the next two years.
What Changes Have Been Introduced Under the 2026 Reforms?
Although zero hours contracts remain lawful in 2026, the Employment Rights Act 2025 introduced a framework for major reforms that will continue to roll out during 2026 and 2027.
The key changes include:
- Rights to guaranteed hours for qualifying workers
- Reasonable notice of shifts
- Compensation for cancelled or shortened shifts
- Expanded protections for agency workers
- Increased obligations on employers using low hours contracts
Many of the practical measures are expected to come fully into force during 2027 following secondary legislation and consultation.
Nevertheless, 2026 is widely viewed as the transition year during which employers should prepare for compliance.
Will Workers Have a Right to Guaranteed Hours?
One of the biggest reforms involves guaranteed hours.
Under the new framework, qualifying workers on zero hours or low hours contracts are expected to gain the right to be offered a contract reflecting the hours they regularly work over a reference period.
The reference period is expected to be around 12 weeks, although final regulations may adjust the details.
This means that where a worker consistently works regular hours over time, the employer may have to offer a contract guaranteeing those hours.
For example:
- A hospitality worker regularly working 30 hours per week over several months may become entitled to a guaranteed hours offer
- A warehouse operative consistently scheduled for fixed weekly shifts could potentially qualify
- A care worker with regular rotas may also fall within the new rules
Importantly, workers are generally expected to retain the choice whether to accept or reject the guaranteed hours offer.
Are Employers Required to Give Notice of Shifts?
Under the planned reforms, employers will also be required to provide reasonable notice of shifts and rota changes for qualifying workers.
Currently, many zero hours workers experience last minute scheduling changes, including:
- Short notice shift allocations
- Sudden cancellations
- Changes to start or finish times
- Early termination of shifts
The new rules are intended to create greater predictability and fairness.
Although the legislation does not yet define exactly what counts as “reasonable notice” in every scenario, employers are expected to review rota management procedures carefully before the reforms are fully implemented.
Will Workers Receive Compensation for Cancelled Shifts?
Yes, in many cases.
Another important reform is the introduction of compensation rights for workers whose shifts are cancelled, curtailed or moved at short notice.
This aims to address situations where workers incur travel, childcare or other costs only to discover their shift has been cancelled at the last minute.
The precise level of compensation will be confirmed through further regulations. However, the reforms represent a substantial change for industries that frequently alter staffing requirements at short notice.
Do the New Rules Apply Only to Zero Hours Contracts?
No.
The reforms are expected to apply not only to traditional zero hours contracts but also to certain “low hours” arrangements.
This means employers may still face obligations even where a contract technically guarantees a small number of hours.
For instance:
- A contract guaranteeing only four hours per week may still fall within the legislation if the worker regularly performs significantly more hours
- Employers may not be able to avoid obligations simply by offering minimal guaranteed hours
The government intends to prevent businesses from sidestepping the reforms through technical drafting.
What About Agency Workers?
Agency workers are also expected to benefit from many of the new protections.
This is particularly important in sectors such as:
- Logistics
- Warehousing
- Healthcare
- Manufacturing
- Seasonal recruitment
The allocation of responsibilities between agencies and end hirers is still being finalised. However, businesses using agency labour should not assume the reforms apply only to recruitment agencies.
Shared legal responsibilities may arise.
Why Is the Government Reforming Zero Hours Contracts?
The reforms form part of a wider programme of employment law reform introduced through the Employment Rights Act 2025.
The government has stated that the legislation is intended to modernise workplace rights and improve security for vulnerable workers.
Critics of zero hours contracts have long argued that some employers use casual working arrangements unfairly by:
- Offering unpredictable schedules
- Cancelling shifts without compensation
- Avoiding stable employment arrangements
- Preventing workers from planning financially
Business groups, however, have warned that excessive regulation may reduce flexibility and affect recruitment in sectors dependent on fluctuating demand.
The government is therefore attempting to strike a balance between flexibility and security.
Can Workers Still Refuse Shifts?
Generally, yes.
One of the defining features of genuine zero hours arrangements is that workers are usually not required to accept every shift offered.
That position is not expected to disappear entirely under the reforms.
However, the practical reality may evolve as guaranteed hours arrangements become more common.
Employers should also remember that exclusivity clauses preventing zero hours workers from working elsewhere are already unenforceable in most circumstances.
What Rights Do Zero Hours Workers Already Have?
Even before the new reforms are fully implemented, zero hours workers already possess important legal protections.
Depending on employment status, these may include:
- National Minimum Wage rights
- Paid annual leave
- Rest breaks
- Protection from discrimination
- Whistleblowing protection
- Pension auto enrolment in qualifying cases
- Statutory sick pay eligibility in some circumstances
Many workers incorrectly assume they have no legal rights because they are on casual contracts. That is often untrue.
Employment status can be complex and tribunals frequently look beyond contractual labels.
What Should Employers Do in 2026?
Employers should treat 2026 as a preparation year.
Businesses heavily reliant on flexible staffing should begin reviewing:
- Zero hours contracts
- Rota systems
- Payroll procedures
- Shift cancellation practices
- Workforce planning
- HR policies
Conduct Workforce Audits
Employers should identify:
- Workers regularly working predictable patterns
- Long term casual staff
- Low hours arrangements potentially caught by the reforms
- Agency worker usage
Improve Record Keeping
Accurate records will become increasingly important.
Businesses should track:
- Hours worked
- Shift offers
- Shift cancellations
- Notice periods
- Worker responses
Train Managers
Line managers and rota planners should understand the upcoming changes.
Poor scheduling practices could expose employers to grievances and Employment Tribunal claims once the new rules take effect.
What Should Workers Do if They Believe Their Rights Are Being Breached?
Workers concerned about unfair treatment should keep records wherever possible.
Useful evidence may include:
- Rotas
- Text messages
- Emails
- Payslips
- Timesheets
- Screenshots of shift cancellations
Workers may then consider:
- Raising concerns informally
- Submitting a grievance
- Seeking legal advice
- Starting Acas Early Conciliation
- Bringing an Employment Tribunal claim
Strict time limits apply in Employment Tribunal proceedings, so delays can be risky.
Frequently Asked Questions About Zero Hours Contracts in 2026
Are zero hours contracts banned in 2026?
No. Zero hours contracts remain legal in England and Wales in 2026.
What are the new guaranteed hours rules?
Qualifying workers are expected to gain the right to be offered guaranteed hours reflecting regular working patterns.
Will workers receive compensation for cancelled shifts?
Yes, compensation rights for short notice cancellations and changes are expected to apply under the reforms.
Do the reforms apply to agency workers?
Yes, many of the protections are expected to extend to agency workers.
When will the reforms fully take effect?
Many of the major zero hours reforms are expected to come into force during 2027 following further regulations and consultation.
Employment Law Advice for Employers and Workers
Zero hours contracts remain lawful in 2026, but the legal environment surrounding casual working arrangements is changing rapidly.
Businesses that continue relying on flexible staffing models should prepare now for increased obligations concerning guaranteed hours, shift notice and cancellation compensation.
Workers, meanwhile, may soon gain significantly stronger protections and greater predictability regarding working patterns and income security.
At Blackstone Solicitors, our employment law solicitors advise employers and employees throughout England and Wales on:
- Zero hours contracts
- Employment Tribunal claims
- Worker status disputes
- Shift cancellation disputes
- Employment contracts and HR policies
- Workplace rights and compliance
If you require legal advice regarding zero hours contracts or the 2026 employment law reforms, our team can assist.
How to Contact Our Employment Law Solicitors
It is important for you to be well informed about the issues and possible implications of Employment Law. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Employment law solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Please visit our website to see all the Employment Law services we offer: https://blackstonesolicitorsltd.co.uk/employment-law-services/
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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