Zero hours contracts are used by hundreds of thousands of employers across the UK, and Scotland is no exception. Whether you work in hospitality, retail, care or any number of other sectors, you may be on a zero hours arrangement without fully understanding what you are entitled to. The Employment Rights Act 2025 has now passed into law, and while zero hours contracts are not being banned outright, the Act introduces significant new protections for workers on these arrangements, including the right to guaranteed hours and the right to compensation if a shift is cancelled at short notice. This article explains the current legal position and what is coming, so that both workers and employers in Scotland know exactly where they stand.
Zero hours contracts have long been a feature of the UK labour market, offering flexibility to employers who need to manage variable demand and, in some cases, to workers who value the freedom to choose when they work. But for many people, particularly those in low-paid or insecure employment, the reality is very different. Unpredictable income, last-minute shift cancellations and no guarantee of hours from one week to the next can create genuine hardship. The Employment Rights Act 2025 addresses this directly. Having previously been known as the Employment Rights Bill as it passed through Parliament, the Act received Royal Assent on 18 December 2025 and its zero hours provisions are being phased in during 2026 and 2027. If you are a worker in Scotland wondering what your rights are, or an employer trying to understand what is expected of you, read on.
What is a zero hours contract under current UK law?
A zero hours contract is an employment arrangement under which the employer is not obliged to offer any minimum number of working hours, and the worker is not required to accept any hours that are offered. The arrangement is genuinely flexible for both parties, at least in theory, though in practice workers on these contracts can find themselves with little bargaining power when it comes to accepting or declining shifts.
The Employment Rights Act 2025 defines a zero hours contract as a contract of employment or working arrangement under which there is no certainty that any work will be made available to the worker. The Act also introduces a definition of a “low-hours contract”, which will cover workers who are technically guaranteed a minimum number of hours but who regularly work significantly more. The detailed definition of a low-hours contract will be set out in future regulations.
It is worth noting that zero hours contracts are sometimes confused with other forms of flexible or casual working. Not everyone without regular hours is on a zero hours contract. If you are unsure of your employment status or what type of contract you are working under, speaking to an employment law solicitor can provide clarity quickly. The distinction matters because different types of arrangement carry different rights.
What rights do zero hours workers have right now?
Even under the current law, workers on zero hours contracts are not without rights. The following protections apply now, regardless of the changes coming under the Employment Rights Act 2025.
National Minimum Wage. Zero hours workers are entitled to the National Minimum Wage for every hour they work. From 1 April 2026, the rate for workers aged 21 and over rises to £12.71 per hour.
Holiday pay. Zero hours workers accrue paid holiday in the same way as other workers. Entitlement is 5.6 weeks per year, calculated on the basis of hours actually worked. Under changes that came into force on 6 April 2024, workers with irregular hours now accrue holiday at a rate of 12.07% of hours worked in each pay period.
Working time protections. The 48-hour weekly working time limit applies, as does the right to rest breaks and rest periods between shifts.
Protection from discrimination. Zero hours workers are protected from discrimination on grounds of age, disability, race, religion or belief, sex, sexual orientation, gender reassignment, marriage and civil partnership, and pregnancy and maternity, in exactly the same way as employees.
Protection from detriment. Workers have the right not to be treated less favourably for asserting their statutory rights. If your employer reduces your hours, stops offering you shifts or treats you unfairly because you raised a concern about your pay or working conditions, that may give rise to a claim.
The right to request flexible working. Zero hours workers can make a formal flexible working request, though this is of limited practical relevance given the nature of their contracts.
What zero hours workers do not currently have is any entitlement to a minimum number of hours, any right to advance notice of shifts, or any compensation if a shift is cancelled. That is what the Employment Rights Act 2025 is designed to change.
What does the Employment Rights Act 2025 mean for zero hours workers?
The Employment Rights Act 2025 does not ban zero hours contracts. What it does is significantly reduce what the government has called “one-sided flexibility”, where all the flexibility sits with the employer and the worker bears all the insecurity. The new rights for zero hours workers fall into four broad categories.
The right to guaranteed hours. From 2027, employers will be required to offer a guaranteed hours contract to any qualifying worker at the end of every reference period. A qualifying worker is someone on a zero hours or low hours contract who regularly works more than the minimum hours specified in their contract. The reference period is expected to be 12 weeks, though this will be confirmed in regulations. The offer must reflect the actual hours the worker has been working.
The right to reasonable notice of shifts. From October 2026, employers will be required to give workers reasonable advance notice of their shifts. The notice must specify the date, the start and end time, and the number of hours to be worked. What constitutes “reasonable” notice has not yet been defined and will be subject to further consultation, but the principle is clear: last-minute rostering without proper notice will be unlawful.
Compensation for cancelled or curtailed shifts. From 2027, workers will have the right to payment if a shift is cancelled at short notice, moved to a different date, or cut short by the employer. The level of compensation will be set out in regulations.
Protection from dismissal and detriment. It will be automatically unfair to dismiss a worker because they accepted or rejected a guaranteed hours offer, or because the employer believed they were entitled to one. Workers will also be protected from being treated less favourably for bringing a claim under these provisions.
Our recent article on the Employment Rights Act 2025 covers the full range of changes introduced by the Act, including the day one rights to paternity leave and Statutory Sick Pay that take effect from April 2026. The zero hours provisions are among the most significant changes, but they are part of a much broader package of reform.
What does 'guaranteed hours' mean in practice?
The guaranteed hours right is designed to tackle a specific problem: workers who are nominally on zero hours contracts but who, in practice, work regular and predictable hours week in and week out, without any of the security of a permanent contract.
Under the new rules, if a worker consistently works, say, 20 hours a week over a 12-week reference period, their employer will be required to offer them a guaranteed hours contract reflecting those 20 hours. The worker can accept or decline that offer. There is no obligation on the worker to take up the guaranteed hours. If they genuinely value the flexibility of their current arrangement, they can decline and remain on a zero hours contract. However, the employer will be required to make the offer again at the end of the next reference period, and every reference period thereafter, for as long as the worker qualifies.
This is an important point. The legislation does not force workers onto guaranteed hours contracts. It gives them the choice. For workers who have been effectively treated as permanent employees without any of the associated security, that choice may be very welcome indeed.
The right also extends to agency workers, with the hirer generally being responsible for making the guaranteed hours offer. If an agency worker accepts, they become the hirer’s worker for the purpose of that contract. The detail of how this will work in practice will be set out in forthcoming regulations.
One potential route for employers is to reach a collective agreement with a recognised trade union that contracts out of the guaranteed hours requirements and replaces them with alternative arrangements. This provides some scope for flexibility, particularly in industries where seasonal or unpredictable demand is genuinely unavoidable.
What should employers be doing to prepare?
The phased introduction of these changes gives employers time to adjust, but that time should be used constructively. The following steps are advisable now.
Review your use of zero hours contracts. Are zero hours arrangements genuinely appropriate for the roles concerned, or have they simply been used as a default? The changes to come may make fixed hours contracts more attractive for roles with a reasonably predictable workload.
Audit your shift notice practices. From October 2026, giving workers reasonable advance notice of their shifts will be a legal requirement. Look at your current systems and processes and consider whether they would meet that standard.
Prepare your record-keeping systems. From 2027, you will need to track the hours worked by each zero hours worker over successive reference periods to determine when a guaranteed hours offer is required. Your payroll or HR software may need to be updated to handle this.
Review employment contracts. Some employers have included clauses in contracts that attempt to prevent workers from working for other employers. The Employment Rights Act 2025 makes these exclusivity clauses in zero hours contracts unenforceable.
Take legal advice. The interaction between the new provisions and existing contracts can be complex. The employment law team at Pomphreys can help you understand your obligations and make sure your contracts and policies are fit for purpose before the changes arrive.
When should a zero hours worker take legal advice?
You should consider speaking to an employment solicitor if any of the following applies to your situation.
You believe you are being misclassified. If you are working regular hours, subject to your employer’s control, and have been working for the same employer for some time, you may have a stronger employment status than your contract suggests. Correctly establishing your status can unlock a range of additional rights.
Your hours have been cut as a result of raising a concern. If your employer has reduced your shifts or stopped contacting you because you asked about your rights, raised a health and safety concern or made a complaint of any kind, you may have been subjected to an unlawful detriment.
You have been dismissed without a fair process. Even if you are a worker rather than an employee, certain dismissals can give rise to claims. From January 2027, unfair dismissal protection will apply after just six months of employment, significantly broadening the scope for claims.
You want to understand what the Employment Rights Act 2025 means for you specifically. General guidance is helpful, but the details of your particular contract and working arrangement matter. A short conversation with a solicitor can give you a clear picture of where you stand.
If you started a new job recently, it is also worth reading our article on employment rights for new starters in 2026 for a broader overview of what you are entitled to from day one.
Why Choose Pomphreys?
At Pomphreys, we have been advising workers and employers on employment matters for more than 125 years. Employment law is a complex and rapidly changing area, and the Employment Rights Act 2025 adds a further layer of reform that affects both sides of the workplace relationship. Whether you are a worker trying to understand your rights on a zero hours contract, or an employer looking to prepare for the changes ahead, our employment law team is here to give you clear, practical advice tailored to your situation.
Speak to our employment law team
If you have questions about zero hours contracts, your employment status, or how the Employment Rights Act 2025 will affect you or your business, get in touch with Pomphreys today. We offer straightforward advice without the jargon.
Frequently Asked Questions about Zero House Contracts in Scotland
Can I be on a zero hours contract and still claim employment rights?
Yes. Being on a zero hours contract does not mean you have no rights. Zero hours workers are entitled to the National Minimum Wage, paid holiday, rest breaks, and protection from discrimination. From October 2026, you will also be entitled to reasonable advance notice of your shifts, and from 2027, your employer will be required to offer you a guaranteed hours contract if you regularly work more hours than your contract provides for.
Can my employer stop giving me shifts without notice on a zero hours contract?
Under the current law, employers are not legally required to give any advance notice of shifts or shift cancellations, and there is no automatic right to compensation if a shift is cancelled. This will change. From October 2026, employers will be required to give workers reasonable advance notice of their shifts and of any changes to them. From 2027, workers will also be entitled to compensation if a shift is cancelled at short notice, moved, or cut short by the employer.
What is the difference between a worker and an employee in Scotland?
Employment law in the UK recognises three main categories: employee, worker, and self-employed. Employees have the full range of employment rights, including protection from unfair dismissal. Workers have a narrower set of rights, including the National Minimum Wage, holiday pay and protection from discrimination, but they do not have the right to claim unfair dismissal under the current law. Self-employed people are generally outside the scope of employment rights altogether. Many people on zero hours contracts are classified as workers rather than employees, though this depends on the actual nature of the working relationship rather than simply what a contract says. If you are unsure which category applies to you, speaking to an employment solicitor is the best way to get a clear answer. Employment law is a reserved matter, which means these rules apply across the whole of the UK, including Scotland, in the same way.
When will the Employment Rights Act 2025 zero hours provisions come into force?
The Employment Rights Act 2025 received Royal Assent on 18 December 2025. The zero hours provisions are being introduced in stages. The right to reasonable advance notice of shifts is expected to come into force in October 2026. The right to guaranteed hours and the right to compensation for cancelled or curtailed shifts are expected to take effect in 2027. Many of the details, including the length of the reference period and what constitutes reasonable notice, will be confirmed in regulations following government consultation. For up-to-date information, ACAS is maintaining a regularly updated overview of the implementation timetable.
This article is by Sarah Lynch
Sarah Lynch, Managing Partner
Sarah Lynch is the Managing Partner at Pomphreys. Sarah studied at Dundee University, achieving a 2:1 LLB Honours degree in Scots Law. She then moved back to Glasgow to study the Diploma in Legal Practice, being one of only a small number of students to be offered a funded position for academic excellence achieved during the LLB. Sarah then secured a traineeship concentrating on Personal Injury before deciding to broaden her scope of work to all civil litigation. We recently caught up with Sarah to discuss her role in Pomphreys.
Tel: 01698 373 365
Email: sl@pomphreyslaw.com
