Zero hours contracts: guidance for employers
Guidance on zero hours contracts - includes information on how to use them, employment rights and alternatives.
Make Work Pay: ending one-sided flexibility – reforms of zero hours and similar contracts.
We have now finished consulting on ending one-sided flexibility - reforms of zero hours and similar contracts.
The law regarding the new zero hours measures is not yet in force, it will change once the Employment Rights Act 2025 is fully implemented. We will update this page to reflect future changes in policy.
A ‘zero hours contract’ is a term often used to describe a number of different types of casual agreements between employers and workers.
The employer does not guarantee any work to workers on zero hours contracts.
Zero hours contracts do not allow employers to avoid their responsibilities. All workers are entitled to employment rights. All workers have to be treated fairly and within the law.
Employment rights
Everyone on a zero hours contract should get statutory employment rights. There are no exceptions.
However, not everyone on a zero hours contract has the same ‘employment status.’
Someone working on a zero hours contract could be a ‘worker’ or an ‘employee.’ This could affect certain other rights the individual gets.
Read more about the difference between workers and employees.
When an employer could use a zero hours contract
New businesses
A new business may take time to build up a customer base. It could employ staff on zero hours contracts to help manage changing demands.
Seasonal work
Employers could use zero hours contracts at busy times of year.
Retailers could use them around Christmas for example, when it’s often busier than usual.
Unexpected sickness
Employers could use zero hours contracts to find cover when permanent staff are unexpectedly off sick.
Special events
A wedding venue, restaurant or bar could use zero hours contracts to cover busy periods.
When an employer should not use zero hours contracts
Zero hours contracts may not be suitable where work is regular and predictable over a continuous period of time.
For example, if someone is going to work from 9am to 1pm, Monday to Wednesday for a 12 month period, it may be better to offer them:
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a permanent part time contract
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a fixed term contract
Alternatives to zero hours contracts
Zero hours contracts are not suitable for every situation. Alternatives might include:
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offering overtime to permanent staff
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recruiting someone part time or on a fixed term contract to cover a change in business needs
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offering ‘annualised hours contracts’ if the employer can predict changing demands
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using agency staff
Contract information
Contracts should be clear and transparent so the worker can understand their rights. See the employment contracts guidance for more about this.
When offering a zero hours contract, employers must comply with their legal obligations.
This includes providing the correct information in the written statement of particulars.
They should also consider including information such as:
- whether the individual is an employee or worker and what employment rights they get
- how they will offer work and whether the worker can turn work down
- if the worker is an employee, how they will build up legal entitlements such as redundancy pay
- how they can end a contract
Offering work: best practice
Employers should give as much notice as possible when offering work. People on zero hours contracts need to be able to plan their lives.
Employers should also be clear about how they offer work.
Employers should not cancel work at the last minute. They should also make it clear to anyone working for them:
- why they might cancel work
- what compensation there might be if they cancel work
Advertising a zero hours role
Employers should be clear that they are advertising a zero hours role without guaranteed hours.
Employers should make sure they understand their legal responsibilities when they employ someone on a zero hours contract.
Exclusivity clauses
The law says employers cannot put exclusivity clauses or terms in:
- zero hours contracts
- contracts where the workers earn less or equivalent to the lower earnings limit
This means that an employer cannot stop these workers from looking for or accepting additional work from another employer.
This also means that these workers can ignore any exclusivity clauses in their contract.
Self-employment
This guidance does not cover people who are genuinely self-employed.
Someone who is genuinely self-employed would not be working under a zero hours contract.