In line with the government's aim to end one-sided flexibility and ensure that jobs provide a baseline of security and predictability, the Act introduces three interconnected rights for workers:
- a right to guaranteed hours;
- a right to reasonable notice of shifts and changes; and
- a right to payment for shifts cancelled, curtailed or moved at short notice.
These measures are not yet in force, with the latest implementation timetable stating that they will come into force in 2027. Regulations are required to set out the key details, and the consultation seeks input on how these measures should be implemented in practice.
Guaranteed hours
The Act will oblige employers to make an offer of guaranteed hours to qualifying workers whose contractual arrangements do not reflect the hours they regularly work.
To qualify, a worker must be on a zero hours contract or work below an 'hours threshold'. The government's preference for this threshold is 8 to 20 hours per week.
Workers must also have worked during a reference period, with guaranteed hours offers calculated based on the hours worked. The government's preferred length for the initial reference period is 12 weeks, with subsequent reference periods to possibly follow, whereby employers must again assess whether they must make a further offer.
Workers' hours must also satisfy the regularity requirements – options include the hours worked over a specified period of weeks. The offer itself must reflect the number of hours worked during the reference period – one suggestion is to calculate this based on a median average, to be more representative of the hours actually worked.
There are proposed, limited exceptions – for example, for seasonal workers on limited-term contracts shorter than the reference period, provided it was reasonable for the contract to be of the limited term.
Public sector employers should assess how many of their workers would fall within scope at the different threshold levels, and consider the potential administrative burden of making guaranteed hours offers at the end of each reference period.
Shifts and changes
The Act requires employers to provide eligible workers with reasonable notice of shifts and changes. This would apply to workers with a specified number of hours guaranteed in their contract.
What constitutes 'reasonable' notice will depend on the circumstances, but shorter notice is likely to be permitted where an employer is seeking cover for a worker who has unexpectedly called in sick.
Failure to provide reasonable notice would give rise to a claim in the Employment Tribunal for any loss suffered as a result. Public sector employers should review their current shift notification and cancellation practices to assess whether they would be compliant under the new regulations, noting the risk of needing to pay possible compensation.
Payment
The Act will require employers to pay eligible workers where a shift is cancelled, curtailed or moved at short notice. Short notice would not be more than 7 days, and would not apply if the worker e.g. failed to attend the shift or swapped voluntarily. The payment amount is proposed to relate to how much the worker would have earned, but for the cancellation.
The government proposes that the Fair Work Agency enforces the right to short notice payments, in addition to workers' ability to bring claims in the employment tribunal.
Public sector employers should be aware of the potential financial exposure arising from short notice cancellation payments and associated penalties, and ensure the proper planning of shifts.
Conclusion
The consultation closes on 25 August 2026, and public sector employers are encouraged to respond. Whilst no proposals are concrete, change is on the horizon, and early engagement and consideration of potential impacts will help to ensure a smooth transition.
