UK zero-hours contract reforms face business and union criticism

zero-hours contracts Employment Rights Act 2025 UK labor policy hospitality sector trade unions

Proposed reforms to zero-hours contracts under the UK’s Employment Rights Act 2025 have drawn criticism from both business groups and trade unions. The government estimates the cost of these reforms could reach £2.9 billion. Implementation of the changes is expected in early 2027.

The British Beer and Pub Association (BBPA) has warned that the changes could threaten the viability of the hospitality sector by increasing costs and reducing operational flexibility. The BBPA is advocating for a request-based system that allows employees to ask for guaranteed hours without mandating them for all staff.

Simultaneously, trade unions including Usdaw, GMB, and Unite have expressed concerns that the current policy proposals may fail to meet the Labour government’s manifesto pledges. Unions are specifically worried about potential loopholes, such as a proposed regularity requirement, which they argue could exclude a significant number of workers from receiving guaranteed hours and job security.

Entities

British Beer and Pub Association · GMB · USDAW · Unite · United Kingdom

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] The union Usdaw argues that guaranteed hours contracts must apply to all workers to meet manifesto commitments. www.theguardian.com
[○ 1 SOURCE] The Unite union expressed concern that a proposed regularity requirement could exclude many workers from qualifying for new rights. www.theguardian.com
[○ 1 SOURCE] As of December 2025, 1.23 million people in the UK were employed primarily under zero-hours contracts. www.independent.co.uk
[○ 1 SOURCE] Changes to zero-hours contracts are scheduled for implementation in early 2027. www.independent.co.uk
[○ 1 SOURCE] Reforms to zero-hours contracts under the Employment Rights Act 2025 could cost up to £2.9 billion. www.independent.co.uk
[○ 1 SOURCE] The BBPA is calling for a request-based system for guaranteed hours to maintain operational flexibility. beertoday.co.uk

Sources

BBPA: Hospitality needs to maintain flexibility for employees [beertoday.co.uk]

20 days ago

Three key proposed changes to zero-hours contracts in the UK [www.independent.co.uk]

22 days ago

Unions worry Labour’s plan for zero-hours contracts may break manifesto pledge [www.theguardian.com]

20 days ago