What Is a Zero-Hours Contract?

A zero-hours contract is a type of casual employment arrangement where the employer does not guarantee to offer any minimum number of hours of work per week or month. Work is offered as and when needed, and the worker is generally free to accept or decline. The employer offers shifts based on business demand, and the worker's income varies accordingly.

Zero-hours contracts are sometimes also called casual contracts or bank contracts (particularly in healthcare and education). They are distinct from part-time contracts, which specify a set minimum number of hours.

How common are zero-hours contracts? The Office for National Statistics (ONS) estimates that approximately 1.1–1.3 million workers in the UK are on zero-hours contracts at any given time. The figure fluctuates with the economic cycle and is highest in hospitality, retail, social care and logistics.

Rights You HAVE on a Zero-Hours Contract

National Living / Minimum Wage

  • £12.21/hr for workers 21+
  • £10.00/hr for ages 18-20
  • £7.55/hr under 18 / apprentice
  • Applies to all hours actually worked

Holiday Pay

  • 5.6 weeks paid leave per year
  • Calculated at 12.07% of hours worked
  • Or average of last 52 weeks
  • Cannot be waived or "rolled up" without agreement

Rest Breaks

  • 20-min break for shifts over 6 hours
  • 11 hrs daily rest between shifts
  • 24 hrs weekly rest (or 48 hrs fortnightly)
  • Working Time Regulations apply

Statutory Sick Pay

  • £116.75/week SSP (2025/26)
  • If avg. earnings ≥ £123/week
  • After 4 consecutive sick days
  • For up to 28 weeks

Maternity / Paternity Pay

  • SMP if qualifying earnings met
  • 26 weeks ordinary maternity leave
  • 2 weeks paternity leave
  • Adoption leave rights apply

Workplace Pension

  • Auto-enrolled if 22–66, earning £10k+/yr
  • Right to opt in if earning below £10k
  • 3% minimum employer contribution
  • 5% minimum employee contribution

Protection from Detriment

  • Cannot be penalised for refusing shifts
  • Protected if you work elsewhere
  • Whistleblowing protection applies
  • Discrimination law applies

Unfair Dismissal Protection

  • After 2 years' continuous service
  • Continuity rules apply (complex)
  • Day 1 rights: automatic dismissal (pregnancy, protected disclosure etc.)
  • Employment Tribunal within 3 months

Rights You DON'T Automatically Have

Guaranteed Hours

  • No legal right to minimum hours per week
  • Employer can offer zero hours in any given week
  • Income can drop to nothing

Advance Notice of Shifts (currently)

  • No current statutory minimum notice
  • Employment Rights Bill 2024-25 will change this
  • Compensation for cancelled shifts at short notice proposed

Statutory Redundancy Pay

  • Only after 2 years' service
  • Complex continuity rules for casual workers
  • Zero-hours workers often excluded in practice

Contractual Benefits

  • No guaranteed sick pay beyond SSP
  • May not qualify for company benefits
  • No guaranteed incremental pay rises

Exclusivity Clauses: BANNED Since 2015

Since May 2015, exclusivity clauses in zero-hours contracts have been illegal. An exclusivity clause is a contractual term that prevents a worker from working for another employer.

You have the legal right to work for multiple employers simultaneously while on a zero-hours contract. Any contract term that attempts to prevent this is unenforceable. Furthermore, if an employer dismisses you or subjects you to a detriment (such as cutting your hours) because you work elsewhere, you can bring a claim in the Employment Tribunal — with no qualifying service period required.

New Law: Right to Request a Predictable Working Pattern

The Workers (Predictable Terms and Conditions) Act 2023 was implemented in September 2024. This landmark legislation gives zero-hours and variable-hours workers new rights:

This is a significant change: Before September 2024, zero-hours workers had no formal mechanism to request guaranteed hours. The new law does not guarantee you will get predictable hours, but it requires employers to engage with the request seriously and can only refuse for defined, legitimate business reasons.

The Employment Rights Bill 2024-25

The Labour government's Employment Rights Bill, introduced in October 2024 and expected to receive Royal Assent in 2025, includes further protections for zero-hours workers:

Holiday Pay Calculation for Zero-Hours Workers

Calculating holiday pay for variable hours workers changed significantly in April 2024 following the Harpur Trust v Brazel Supreme Court decision and subsequent legislative amendments.

Current Method (from April 2024)

For workers with irregular hours, holiday entitlement is calculated as 12.07% of hours worked in each pay period. This is because 5.6 weeks represents 12.07% of 46.4 working weeks in a year (52 - 5.6 = 46.4; 5.6 ÷ 46.4 = 12.07%).

Example: If you work 20 hours in a week, you accrue 20 × 12.07% = 2.41 hours of holiday entitlement that week.

Using Rolled-Up Holiday Pay

From April 2024, employers can legally use rolled-up holiday pay for irregular hours and part-year workers. This means adding 12.07% on top of every pay packet rather than paying a separate holiday sum. This must be clearly shown on payslips.

Check your payslip: If your employer uses rolled-up holiday pay, make sure it is explicitly shown as a separate line item. You cannot waive your holiday entitlement — it is a statutory right. However, any accrued but untaken holiday pay that is rolled-up is paid as you go, so there is no additional payment when you take time off.

Industries Where Zero-Hours Contracts Are Common

Hospitality
Retail
Social Care
Events & Festivals
Logistics
Education
Healthcare (Bank Staff)
Agriculture
Cleaning
Security

Zero-hours contracts are particularly prevalent in industries with seasonal or highly fluctuating demand. The social care sector relies heavily on zero-hours workers to provide flexible domiciliary care services, though this has been widely criticised as creating insecurity for both workers and service users.

Should You Accept a Zero-Hours Contract? Pros and Cons

Potential Advantages

  • Maximum flexibility to accept or decline work
  • Ability to work for multiple employers
  • Good for students managing around study schedules
  • Useful as a supplementary income source
  • Entry point into industries or companies
  • Can work as much or as little as suits you
  • Often no notice period required to leave

Potential Disadvantages

  • Income is unpredictable — may fluctuate significantly
  • Harder to qualify for mortgages and loans
  • Less likely to receive company benefits
  • No guarantee of sufficient hours to live on
  • May not build continuous service quickly enough for rights
  • Harder to plan personal finances and commitments
  • Employer can reduce hours without consultation

If you regularly work consistent hours week after week, you may be able to argue that you have an implied contract of regular employment. Case law (such as Autoclenz v Belcher [2011]) supports the principle that courts look at the reality of the working relationship, not just the contract's wording. If you believe your zero-hours contract does not reflect your actual working arrangement, consider seeking legal advice.

Alternatives to Zero-Hours Contracts

If you are regularly offered and work consistent hours on a zero-hours contract, it may be worth approaching your employer to convert to a guaranteed minimum hours contract. This benefits both parties: you gain income predictability, and the employer gains a more committed workforce.

Frequently Asked Questions

What is a zero-hours contract?

A zero-hours contract is an employment arrangement where the employer does not commit to providing any minimum number of hours of work. Shifts are offered as business needs arise, and the worker may accept or decline. The term "zero-hours" refers to the fact that the contract guarantees zero hours per week. Despite this, workers on zero-hours contracts retain important legal rights including the National Minimum Wage, holiday pay, rest breaks and protection from discrimination.

Do zero-hours workers get holiday pay?

Yes. Zero-hours workers are legally entitled to 5.6 weeks' paid annual leave per year (the statutory minimum for all workers). Because hours vary, the entitlement is calculated as 12.07% of hours actually worked (since April 2024, following legislative changes implementing the Harpur Trust v Brazel Supreme Court ruling). Employers may use rolled-up holiday pay, adding 12.07% to each week's pay, which must be shown explicitly on payslips. You cannot be asked to waive your holiday entitlement.

Are exclusivity clauses on zero-hours contracts legal?

No. Since the Small Business, Enterprise and Employment Act 2015 (effective May 2015), exclusivity clauses in zero-hours contracts have been unlawful. You are legally free to work for multiple employers simultaneously. Any contract term preventing this is unenforceable. If an employer dismisses you or cuts your hours because you work elsewhere, you can bring an Employment Tribunal claim without any qualifying service period.

Can I get statutory sick pay on a zero-hours contract?

Yes, provided you meet the earnings threshold. You qualify for Statutory Sick Pay (SSP) of £116.75 per week (2025/26) if your average earnings equal at least £123 per week (the Lower Earnings Limit). For variable-hours workers, HMRC calculates your average earnings over the 8 weeks preceding the first day of sickness. You must be off sick for 4 or more consecutive days (including non-working days) to qualify.

What is the right to request a predictable working pattern?

The Workers (Predictable Terms and Conditions) Act 2023, implemented September 2024, gives workers with at least 26 weeks' service and a variable or zero-hours contract the right to formally request a more predictable working pattern — such as fixed hours, fixed days or fixed start/finish times. Employers must respond within one month and can only refuse on specified statutory grounds. Up to 2 requests may be made in a 12-month period. This does not guarantee you will receive a predictable pattern, but employers must engage seriously with the request.

Can I be automatically enrolled in a workplace pension on a zero-hours contract?

Yes. Auto-enrolment rules apply regardless of contract type. If you are aged 22–66 and earn over £10,000 per year from a single employer, your employer must automatically enrol you in a workplace pension. Zero-hours workers who earn below £10,000 annually or who are under 22 have the right to opt in voluntarily. Employer contributions must be at least 3% of qualifying earnings and total contributions (including employee) must be at least 8%.

What notice do I get of shifts on a zero-hours contract?

Currently, there is no statutory minimum notice period for offering or cancelling zero-hours shifts. The Employment Rights Bill 2024-25 (expected Royal Assent 2025) proposes introducing a right to reasonable notice and compensation for last-minute cancellations. Until these provisions come into force, workers must rely on contractual terms and the goodwill of their employer. Best practice, as recommended by ACAS, is at least one week's notice of scheduled shifts.

Am I protected from unfair dismissal on a zero-hours contract?

Yes, after 2 years' continuous service. Calculating continuous service for zero-hours workers can be complex — significant gaps in work may break continuity, though regular and settled arrangements are protected under the Employment Rights Act 1996. Some dismissal reasons attract Day 1 protection regardless of service length: dismissal related to pregnancy, maternity, whistleblowing or trade union membership, for example. Consult ACAS or a trade union if you believe you have been unfairly dismissed.

Should I accept a zero-hours contract?

It depends on your personal circumstances. Zero-hours contracts suit people who need maximum flexibility, have another income source, or are using the role as a stepping stone. They are unsuitable if you need a predictable income to meet rent, mortgage or credit commitments, or if you need to demonstrate regular earnings to a landlord or lender. If you regularly work consistent hours, consider requesting a guaranteed minimum hours contract — many employers will agree, especially after the Workers (Predictable Terms and Conditions) Act 2023 gave you a formal right to request this.

MB
Mustafa Bilgic Employment Law Workers' Rights

Mustafa Bilgic (MB) is a UK employment rights specialist. Information in this guide is sourced from GOV.UK, ACAS, and legislation current as of February 2026. Seek professional legal advice for individual cases.

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