Legislation – Employment Rights Act 2025
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Part 1Employment rights
Zero hours workers, etc
1Right to guaranteed hours
(1)
Part 2A of the Employment Rights Act 1996 (zero hours workers) is amended as follows.
(2)
In the Part heading, at the end insert “and similar”
.
(3)
“Chapter 1Exclusivity terms and other restrictions”.
(4)
“Chapter 2Right to guaranteed hours
Guaranteed hours offers
27BARight for qualifying workers to be offered guaranteed hours
(1)
An employer must make a guaranteed hours offer to a worker in accordance with section 27BB after the end of every period—
(a)
that is a reference period in relation to that worker and that employer, and
(b)
in relation to which the worker is a qualifying worker of the employer.
(2)
Section 27BD makes provision for exceptions to this duty, including in certain cases where the worker ceases to be employed by the employer.
(3)
A worker is a qualifying worker of an employer in relation to a reference period if—
(a)
during the reference period the worker was employed by the employer under one or more worker’s contracts (whether or not continuously) and either—
(i)
the worker’s contract was, or the worker’s contracts were, a zero hours contract or entered into in accordance with a zero hours arrangement, or
(ii)
the worker’s contract, or the worker’s contracts (taken together), required the employer, or were entered into in accordance with an arrangement that required the employer, to make work available to the worker during the reference period for a number of hours (“the minimum number of hours”) not exceeding a specified number of hours,
(b)
during the reference period the worker worked under the worker’s contract or the worker’s contracts (taken together) for a number of hours (the “reference period hours”),
(c)
(d)
(4)
In relation to a worker and the worker’s employer, each of the following is a “reference period”—
(a)
the initial reference period, and
(b)
each subsequent reference period.
(5)
“The initial reference period”, in relation to a worker and the worker’s employer, means the period—
(a)
beginning with—
(i)
where the worker is employed by the employer on the day on which subsection (1) comes into force (“the commencement day”), the commencement day, or
(ii)
where the worker is not so employed, the first day after the commencement day on which the worker is employed by the employer, and
(b)
ending with the specified day.
(6)
A “subsequent reference period”, in relation to a worker and the worker’s employer, means a period beginning and ending with the specified days.
(7)
(8)
For the purposes of this Chapter—
(a)
references to a “qualifying worker” are to a worker who is a qualifying worker of an employer in relation to a reference period by virtue of subsection (3), and
(b)
the reference period in relation to which the worker is a qualifying worker of the employer is referred to as “the relevant reference period”.
(9)
If, during a reference period—
(a)
(b)
the worker’s contract, or the worker’s contracts, that are of the type described in subsection (3)(a)(ii) are to be disregarded in the application of this Chapter (other than this subsection) in relation to the worker and the reference period (and accordingly that worker’s contract, or those worker’s contracts, are to be treated as not existing).
(10)
Subsection (11) applies where—
(a)
a worker’s contract or arrangement requires an employer to make work available to a worker for a number of hours, and
(b)
some or all of those hours may be made available either on days falling within a reference period or on days falling within another period (all of the days on which the hours may be so made available together forming the “longer period”).
(11)
Where this subsection applies—
(a)
subsection (3)(a)(ii) is to apply as if the contract or arrangement required the employer to make work available to the worker during the reference period for the apportioned number of the unassigned hours (in addition to any other hours that the employer is required to make available to the worker during the reference period);
(b)
“the apportioned number” of the unassigned hours is—
where—
H is the number of the unassigned hours,
D1 is the number of days in the reference period that fall within the longer period, and
D2 is the number of days in the longer period.
(12)
Where there is more than one longer period in relation to the same reference period, subsection (11) is to be applied separately in relation to each longer period.
(13)
Nothing in this Chapter prevents an employer from making one or more other offers to a qualifying worker, to vary the worker’s terms and conditions of employment or enter into a new worker’s contract, at the same time as making a guaranteed hours offer.
(14)
(15)
Before making—
(a)
the first regulations to be made under subsection (5), the Secretary of State must consult such persons as the Secretary of State considers appropriate about when the initial reference period is to end;
(b)
the first regulations to be made under subsection (6), the Secretary of State must consult such persons as the Secretary of State considers appropriate about when a subsequent reference period is to begin and end.
(16)
In this section, “excluded worker” means a worker who is of a specified description.
27BBRequirements relating to a guaranteed hours offer
(1)
An offer by an employer to a qualifying worker is a guaranteed hours offer for the purposes of this Chapter if it is an offer—
(a)
to vary the worker’s terms and conditions of employment (but see subsection (6)), or
(b)
to enter into a new worker’s contract,
and the terms and conditions as varied or (as the case may be) the new worker’s contract will require the employer to provide the qualifying worker with work, and the qualifying worker to do work, for a number of hours that reflects the reference period hours in the relevant reference period.
(2)
The Secretary of State may by regulations provide that an offer by an employer to a qualifying worker is a guaranteed hours offer for the purposes of this Chapter only if it also satisfies the condition in subsection (3).
(3)
The condition referred to in subsection (2) is that—
(a)
the offer sets out—
(i)
the days of the week, and the times on those days, when the offered number of hours are to be provided and worked, or
(ii)
a working pattern of days, and times of day, by reference to which the offered number of hours are to be provided and worked, and
(b)
those days and times reflect, or that pattern reflects, when the qualifying worker worked the reference period hours in the relevant reference period.
(4)
Where no regulations are in force under subsection (2) that apply in relation to an offer by an employer to a qualifying worker, the offer is a guaranteed hours offer for the purposes of this Chapter only if it also proposes terms and conditions relating to when the offered number of hours are to be provided and worked (which need not be on particular days of the week, or at particular times on those days, or by reference to a particular working pattern of days or times of day).
(5)
The Secretary of State may by regulations make provision about how it is to be determined—
(a)
whether an offer reflects the number of hours worked by a qualifying worker during a reference period;
(b)
where regulations are in force under subsection (2) that apply in relation to an offer, whether the offer reflects when hours were worked by a qualifying worker during a reference period.
(6)
A guaranteed hours offer may take the form of an offer to vary a qualifying worker’s terms and conditions of employment (as opposed to an offer to enter into a new worker’s contract) only if—
(a)
the qualifying worker worked for the employer under a worker’s contract at the beginning of the relevant reference period,
(b)
the qualifying worker is still working for the employer under that worker’s contract on the day the offer is made, and
(c)
the qualifying worker did not work for the employer under any other worker’s contract during the period beginning with the first day of the relevant reference period and ending with the day the offer is made.
(7)
A guaranteed hours offer that takes the form of an offer to vary a qualifying worker’s terms and conditions of employment—
(a)
must propose the removal of any term that provides for the contract to terminate by virtue of a limiting event unless, if the contract were entered into on the day the offer is made, it would be reasonable for it to be entered into as a limited-term contract;
(8)
A guaranteed hours offer that takes the form of an offer to enter into a new worker’s contract—
(a)
must not propose a new worker’s contract that is a limited-term contract unless it is reasonable for it to be entered into as such a contract, and
(b)
must (in addition to what is required by or under subsections (1) and (2) or subsections (1) and (4)) propose terms and conditions of employment—
(i)
that, taken as a whole, are no less favourable than the terms and conditions of employment relating to matters other than working hours and length of employment that the qualifying worker had when working for the employer during the relevant reference period, or
(9)
For the purposes of this section it is reasonable for a worker’s contract of a qualifying worker to be entered into as a limited-term contract only if—
(a)
it is reasonable for the qualifying worker’s employer to consider that the worker is only needed to perform a specific task and the contract provides for termination when the task has been performed,
(b)
it is reasonable for the qualifying worker’s employer to consider that the worker is only needed until the occurrence of an event (or the failure of an event to occur) and the contract provides for termination on the occurrence of the event (or the failure of the event to occur), or
(c)
it is reasonable for the qualifying worker’s employer to consider that there is only a temporary need of a specified description (not falling within paragraph (a) or (b)) for the qualifying worker to do work under the contract and the contract is to expire at a time when it is reasonable for the employer to consider that the temporary need will come to an end.
(10)
Before making the first regulations to be made under subsection (9)(c) the Secretary of State must consult—
(a)
such persons representing the interests of seasonal workers as the Secretary of State considers appropriate,
(b)
such persons representing the interests of employers of seasonal workers as the Secretary of State considers appropriate, and
(c)
such other persons as the Secretary of State considers appropriate.
(11)
A guaranteed hours offer—
(a)
must be made by no later than the specified day,
(b)
must be made in the specified form and manner, and
(c)
must be accompanied by specified information relating to the offer.
(12)
The Secretary of State may by regulations make provision about when a guaranteed hours offer is to be treated as having been made.
(13)
27BCRequirements relating to a guaranteed hours offer: supplementary
(1)
This section applies where—
(a)
a guaranteed hours offer made by an employer to a qualifying worker takes the form of an offer to enter into a new worker’s contract, and
(b)
during the relevant reference period—
(i)
the qualifying worker worked for the employer under more than one worker’s contract and did not have the same terms and conditions of employment relating to matters other than working hours and length of employment under those worker’s contracts, or
(ii)
the qualifying worker worked for the employer under only one worker’s contract but there was a variation during the relevant reference period of the qualifying worker’s terms and conditions of employment relating to matters other than working hours and length of employment.
(2)
Where this section applies, the guaranteed hours offer may propose terms and conditions of employment (in addition to what is required by or under section 27BB(1) and (2) or section 27BB(1) and (4)) that, taken as a whole, are less favourable than the most favourable terms and conditions of employment relating to matters other than working hours and length of employment that the qualifying worker had when working for the employer during the relevant reference period, but only if—
(a)
those proposed terms and conditions, taken as a whole, are no less favourable than the least favourable terms and conditions relating to matters other than working hours and length of employment that the qualifying worker had when working for the employer during the relevant reference period, and
(b)
the proposal of those terms by the employer constitutes a proportionate means of achieving a legitimate aim.
(3)
If an employer relies on subsection (2) when making a guaranteed hours offer to a qualifying worker, the employer must give to the qualifying worker a notice that—
(a)
states that the employer has done so, and
(b)
explains how the proposed terms and conditions constitute a proportionate means of achieving a legitimate aim.
(4)
27BDGuaranteed hours offer: exceptions to duty to make offer and withdrawal of offer
(1)
The duty imposed by section 27BA(1) on an employer in relation to a qualifying worker does not apply if during the relevant reference period or the offer period there is a relevant termination of—
(a)
the worker’s contract under which the qualifying worker has been working for the employer, or
(b)
the arrangement in accordance with the terms of which the qualifying worker has been working for the employer.
(2)
A guaranteed hours offer made by an employer to a qualifying worker is to be treated as having been withdrawn if during the response period there is a relevant termination of—
(a)
the worker’s contract under which the qualifying worker has been working for the employer, or
(b)
the arrangement in accordance with the terms of which the qualifying worker has been working for the employer.
(3)
Where a qualifying worker works for an employer under more than one worker’s contract, or in accordance with the terms of more than one arrangement, during—
(a)
the relevant reference period,
(b)
the offer period, or
(c)
the response period,
the references in subsections (1) and (2) to the worker’s contract or (as the case may be) the arrangement are to the worker’s contract under which, or (as the case may be) the arrangement in accordance with the terms of which, the qualifying worker last worked for the employer before the end of the period in question.
(4)
There is a relevant termination of a worker’s contract entered into between a qualifying worker and an employer if—
(a)
the qualifying worker terminates (with or without notice) the worker’s contract otherwise than in circumstances in which the worker is entitled to terminate it without notice by reason of the employer’s conduct,
(b)
the employer terminates (with or without notice) the worker’s contract and—
(i)
the employer’s reason for doing so (or, if more than one, the employer’s principal reason for doing so) is a qualifying reason, and
(ii)
in the circumstances (including the size and administrative resources of the employer’s undertaking) the employer acts reasonably in treating the reason (or the principal reason) as a sufficient reason for terminating the contract, or
(c)
the worker’s contract terminates by virtue of a limiting event and it was reasonable for the contract to have been entered into as a limited-term contract.
(5)
There is a relevant termination of an arrangement entered into between a qualifying worker and an employer if—
(a)
(6)
(7)
In exercising the power under subsection (6) the Secretary of State must, in particular, have regard to—
(a)
the benefit to workers of receiving a guaranteed hours offer under this Chapter, and
(b)
the desirability of preventing this Chapter from having a significant adverse effect on employers who are dealing with exceptional circumstances.
(8)
Where, by virtue of subsection (2), a guaranteed hours offer made by an employer to a qualifying worker is treated as having been withdrawn, the employer must, by no later than the end of the response period, give a notice to the qualifying worker stating this to be the case.
(9)
Where, by virtue of regulations under subsection (6)—
(a)
(b)
a guaranteed hours offer made by an employer to a qualifying worker is treated as having been withdrawn,
(10)
A notice under subsection (9) must be given by an employer to a qualifying worker—
(a)
where it is required to be given by virtue of paragraph (a) of that subsection, by no later than the end of the offer period;
(b)
where it is required to be given by virtue of paragraph (b) of that subsection, by no later than the end of the response period.
(11)
The Secretary of State may by regulations make provision about—
(12)
(a)
(b)
it is to be presumed, unless the contrary is shown, that it was not reasonable for the worker’s contract to have been entered into as a limited-term contract if the work done by the qualifying worker under the worker’s contract was of the same or a similar nature as the work done under another worker’s contract under which the qualifying worker worked for the employer—
(i)
where the period in question is the relevant reference period, during that period;
(ii)
where the period in question is the offer period, during that period or the relevant reference period;
(iii)
where the period in question is the response period, during that period, the relevant reference period or the offer period.
(13)
In this section—
“the offer period”, in relation to a qualifying worker and the qualifying worker’s employer, means the period beginning with the day after the day on which the relevant reference period ends and ending with—
(a)
the day on which a guaranteed hours offer is made to the qualifying worker by the employer, or
“qualifying reason” means—
(a)
a reason of the type mentioned in section 98(1)(b), or
(b)
in relation to a worker who was not an employee immediately before ceasing to be employed, a reason that would be of the type mentioned in section 98(1)(b) if references in that provision and in section 98(2) and (3) to an employee were references to a worker;
“the response period”, in relation to a guaranteed hours offer made to a qualifying worker, means the period—
(a)
beginning with the day after the day on which the offer is made, and
(b)
ending with the specified day.
27BEAcceptance or rejection of a guaranteed hours offer
(1)
Where an employer makes a guaranteed hours offer to a qualifying worker and the offer is not treated as having been withdrawn by virtue of section 27BD(2) or regulations under section 27BD(6), the qualifying worker may, by giving notice to the employer before the end of the response period, accept or reject the offer.
(2)
Where the guaranteed hours offer takes the form of an offer to vary the qualifying worker’s terms and conditions of employment and the qualifying worker gives notice under subsection (1) accepting the offer, the variation (assuming the worker’s contract that was in force when the guaranteed hours offer was made is still in force) is to be treated as taking effect on the day after the day on which notice is given (but this is subject to subsection (6)).
(3)
If the guaranteed hours offer takes the form of an offer to vary the qualifying worker’s terms and conditions of employment but the worker’s contract that was in force when the guaranteed hours offer was made ceases to be in force during the response period—
(a)
(b)
if the qualifying worker does so—
(i)
the qualifying worker and the employer are to be treated as entering into a worker’s contract on the day after the day on which notice is given (but this is subject to subsection (6)), and
(ii)
the terms of the contract are to be treated as being the terms of the worker’s contract that was in force when the guaranteed hours offer was made as varied in accordance with the terms of the offer.
(4)
Where the guaranteed hours offer takes the form of an offer to enter into a new worker’s contract and the qualifying worker gives notice under subsection (1) accepting the offer—
(a)
the qualifying worker and the employer are to be treated as entering into a worker’s contract in the terms of the offer on the day after the day on which notice is given (but this is subject to subsection (6)), and
(b)
that worker’s contract is to be treated as replacing any other worker’s contract entered into between the qualifying worker and the employer that is in force on that day.
(5)
But where, by virtue of subsection (4)(b), a new worker’s contract replaces another worker’s contract of a qualifying worker who is an employee—
(a)
that is not to be treated for the purposes of this Act as breaking the continuity of a period of employment of the qualifying worker;
(b)
the worker’s contract that is replaced is not to be treated for the purposes of Part 10 as having terminated.
(6)
A qualifying worker and an employer may agree, for the purposes of subsection (2), (3) or (4), that the variation of the qualifying worker’s terms and conditions of employment is to be treated as taking effect, or (as the case may be) the new worker’s contract is to be treated as being entered into, on a later day than the day mentioned in the subsection (and, in subsection (4)(b), the reference to “that day” is then to be read as a reference to the later agreed day).
(7)
If a qualifying worker to whom a guaranteed hours offer has been made does not give notice under subsection (1) before the end of the response period, the qualifying worker is to be treated as having rejected the offer.
(8)
The Secretary of State may by regulations make provision about—
(a)
the form and manner in which notice under subsection (1) must be given by a qualifying worker to an employer;
(b)
when notice given by a qualifying worker to an employer under subsection (1) is to be treated as having been given.
(9)
In this section, “the response period” has the same meaning as in section 27BD.
(10)
Where—
(a)
an employer is permitted by section 27BY(3) to withdraw a guaranteed hours offer (withdrawal of offer following incorporation of terms of collective agreement), and
(b)
the employer withdraws the offer by giving notice under that section,
subsection (1) of this section ceases to apply in relation to the offer when the notice is given.
Information
27BFInformation about rights conferred by Chapter 2
(1)
An employer who employs a worker who it is reasonable to consider might become a qualifying worker of the employer in relation to a reference period (whether the initial reference period, or a subsequent reference period, as defined in section 27BA) must take reasonable steps, within the initial information period, to ensure that the worker is aware of specified information relating to the rights conferred on workers by this Chapter.
(2)
An employer who is subject to the duty in subsection (1) in relation to a worker must take reasonable steps to ensure that, after the end of the initial information period, the worker continues to have access to the specified information referred to in that subsection at all times when—
(a)
the worker is employed by the employer, and
(b)
it is reasonable to consider that the worker might become (or might again become) a qualifying worker of the employer in relation to a reference period.
(3)
“The initial information period”, in relation to a worker and the worker’s employer, means the period of two weeks beginning with—
(a)
where the worker is employed by the employer on the day on which section 27BA(1) comes into force (“the commencement day”), the commencement day, or
(b)
where the worker is not so employed, the first day after the commencement day on which the worker is employed by the employer.
(4)
But where, on the day referred to in subsection (3)(a) or (b), it was not reasonable to consider that the worker might become a qualifying worker of the employer in relation to any reference period, subsection (3) is to be read as if it provided for “the initial information period” to mean the period of two weeks beginning with the day on which it becomes reasonable so to consider.
Enforcement
27BGComplaints to employment tribunals: grounds
(1)
A worker may present a complaint to an employment tribunal that—
(a)
(b)
by the end of the last day of the offer period, the employer has not made an offer to vary the worker’s terms and conditions of employment or to enter into a new worker’s contract in compliance (or purported compliance) with that duty (whether because the employer does not consider that the worker is a qualifying worker in relation to the reference period or for any other reason).
(2)
A worker may present a complaint to an employment tribunal that—
(a)
(b)
the offer that the employer has made to the worker in relation to that reference period to vary the worker’s terms and conditions of employment or to enter into a new worker’s contract is not a guaranteed hours offer as described in—
(i)
(3)
A worker may present a complaint to an employment tribunal that—
(a)
(b)
the guaranteed hours offer that the employer has made to the worker in relation to that reference period—
(i)
(4)
A worker may present a complaint to an employment tribunal that—
(a)
(b)
the guaranteed hours offer that the employer has made to the worker in relation to that reference period is on terms requiring the employer to provide, and the worker to do, less work than would have been the case if the employer had not, during that reference period—
(i)
limited (by whatever means, including termination of a worker’s contract or an arrangement) the number of hours of work made available to the worker, or
(ii)
decided to make work available to the worker in the way that the employer did,
for the sole or main purpose of being able to comply with the duty by making such a reduced offer.
(5)
A worker may present a complaint to an employment tribunal that the duty imposed by section 27BA(1) would have applied to the worker’s employer in relation to the worker and a particular reference period if the employer had not, during that reference period—
(a)
limited (by whatever means, including termination of a worker’s contract or an arrangement) the number of hours of work made available to the worker, or
(b)
decided to make work available to the worker in the way that the employer did,
(6)
(a)
may be presented whether or not the offer in question has been accepted by the worker, but
(7)
A worker may present a complaint to an employment tribunal that the worker’s employer—
(b)
(8)
A worker may present a complaint to an employment tribunal that the worker’s employer has failed to comply with—
(9)
27BHComplaints to employment tribunals: time limits
(1)
An employment tribunal must not consider a complaint under section 27BG(1) unless it is presented before the end of the period of six months beginning with the day after the last day of the offer period (as defined in section 27BG(9)).
(2)
An employment tribunal must not consider a complaint under section 27BG(2) unless it is presented before the end of the period of six months beginning with the day after the day when the offer referred to in that provision is made.
(3)
An employment tribunal must not consider a complaint under section 27BG(3) or (4) unless it is presented before the end of the period of six months beginning with the day after the day when the guaranteed hours offer referred to in that provision is made.
(4)
An employment tribunal must not consider a complaint under section 27BG(5) unless it is presented before the end of the period of six months beginning with the day after what would have been the last day of the offer period (as defined in section 27BG(9)) if the duty imposed by section 27BA(1) had applied.
(5)
(6)
(7)
(8)
(9)
But, if the employment tribunal is satisfied that it was not reasonably practicable for a complaint under section 27BG to be presented before the end of the relevant period of six months, the tribunal may consider the complaint if it is presented within such further period as the tribunal considers reasonable.
(10)
27BIRemedies
(1)
Where an employment tribunal finds a complaint under section 27BG well-founded, the tribunal—
(a)
must make a declaration to that effect, and
(b)
may make an award of compensation to be paid by the employer to the worker.
(2)
The amount of compensation under subsection (1)(b) is to be such amount, not exceeding the permitted maximum, as the tribunal considers just and equitable in all the circumstances to compensate the worker for any financial loss sustained by the worker which is attributable to the matter complained of.
(3)
In ascertaining the financial loss sustained, the tribunal must apply the same rule concerning the duty of a person to mitigate their loss as applies to damages recoverable under the common law of England and Wales or (as the case may be) Scotland.
(4)
For the purposes of subsection (2), “the permitted maximum” is—
(a)
(5)
In calculating a week’s pay for the purposes of determining the permitted maximum for an award of compensation to a worker who is not an employee, Chapter 2 of Part 14 is to apply as if—
(a)
references in that Chapter and in section 234 (normal working hours) to an employee were references to a worker;
(b)
references in that Chapter and in section 234 to a contract of employment were references to a worker’s contract;
(c)
“week” meant—
(i)
in relation to a worker whose remuneration is calculated weekly by a week ending with a day other than a Saturday, a week ending with that other day, and
(ii)
in relation to any other worker, a week ending with Saturday.”