Zero-hours and low-hours contracts: what the latest consultation means for schools

On 2 June 2026, the government launched its latest Employment Rights Act 2025 consultation, focusing on zero-hours and low-hours contracts. The consultation is open until 25 August 2026.

The key proposals

The consultation focuses on the following three core rights that qualifying zero hour and low hour workers will enjoy once the regulations come into force:

Right to guaranteed hours

Workers on zero-hours contracts, or on contracts below a specified hours threshold (low-hours contracts), will be entitled to guaranteed hours reflecting their actual working pattern over a reference period.

The hours threshold and the reference period are yet to be defined, and the current consultation is seeking views to assist with determining these issues.

The government’s preferred hours threshold sits between 8 and 20 hours per week, and its preferred initial reference period is 12 weeks, although alternatives of 26 and 52 weeks remain under consideration.

To qualify for guaranteed hours workers must have worked with sufficient regularity during the reference period. The consultation therefore also seeks views on two options for testing whether a worker has worked with sufficient regularity which include:

• a requirement that the worker has worked in a minimum number of weeks, or
• a combined test requiring both a minimum number of weeks and a minimum number of hours above contracted hours.

Right to reasonable notice of shifts.

Shift workers will need to be given reasonable notice of shifts and of any changes to them where they are subject to a zero-hours contract or a contract where they do not know their shift pattern in advance. The regulations will set what that reasonable notice period will be, and the current consultation is canvassing opinions on this point.

Payment for short-notice cancellations

Eligible workers will also be entitled to compensation where a shift is cancelled, moved or reduced at short notice. The definition of “short notice” cannot exceed seven days and the consultation is seeking views on the length of time that should be considered short notice.  The government is also considering a separate “very short notice” tier which would attract a higher level of compensation. The consultation proposes that compensation for the cancellation of shifts be based on a percentage of expected earnings, or on the National Living Wage or National Minimum Wage rates and again this is something upon which the government is seeking input via the consultation.

Enforcement

The government proposes that the right to short-notice payments may be enforced both through employment tribunals and by the Fair Work Agency through notices of underpayment and has asked for views in respect of this proposal. Currently the preferred penalty is 50% of any arrears owed, with a minimum penalty of £100 and a maximum of £5,000 per worker, however this is also subject to consultation.

Relevance to schools

Schools should pay particular attention to these reforms. Many schools rely on staff who work on zero-hours or low-hours arrangements, whether as supply teachers, invigilators, sports coaches, catering staff, or peripatetic music teachers. These roles often involve variable hours that fluctuate with the academic calendar, term-time demands and seasonal peaks such as examination periods.

Schools will need to consider how the reference period and regularity tests apply to staff whose working hours may naturally vary across terms and holidays. Exam invigilators, for example, may only work for two or three weeks in any given school year.

The treatment of seasonal and genuinely temporary work is an issue that remains unclear. The consultation acknowledges that the existing statutory framework for limited-term contracts may not adequately capture demand that falls away at the end of term or during holiday periods, and views are being sought on whether a broader definition of “temporary need” is required.

Schools should also consider the practical implications of the shift-notice requirements and short-notice cancellation payments, particularly where timetabling changes, staff absences or pupil numbers can necessitate last-minute adjustments to working patterns – which may shortly prove to be costly.

Next steps

The consultation closes on 25 August 2026, and responses can be submitted via the government’s online platform or by email. Schools may wish to respond to the consultation to ensure that the particular needs of the education sector are reflected in the final regulations.

We would encourage schools to begin reviewing their current use of zero-hours and low-hours arrangements so that they are well placed to adapt once the changes take effect.