UK zero hours contracts: rights and upcoming reforms

Zero hours contracts, also known as casual contracts, are arrangements where employers are not required to provide minimum working hours and workers are not obligated to accept work offered. These contracts are commonly used for seasonal peaks, student holiday work, on-call roles, and gig economy services such as food delivery.

A worker's legal rights depend on whether they are classified as an employee or a worker rather than the contract type itself. Both statuses entitle individuals to the National Minimum Wage and statutory annual leave. However, employees may have additional rights regarding unfair dismissal and redundancy pay, provided they meet qualifying service requirements.

Under the Employment Rights Act 1996, employers are prohibited from including exclusivity clauses that prevent zero hours staff from working for other employers. Furthermore, the Employment Rights Act 2025 is set to introduce reforms to these arrangements, though specific regulations regarding reference periods and hours thresholds are still to be determined.