Zero Hours Contract

Zero-hours contracts allow employers to offer work without guaranteeing minimum hours. Workers on these contracts are entitled to the National Living/Minimum Wage for all hours worked, 5.6 weeks' paid holiday per year (pro-rated to hours worked), and rest break rights. They cannot be required to work exclusively for one employer (exclusivity clauses in zero-hours contracts are unenforceable under the Employment Rights Act 1996 as amended). The Employment Rights Act 2025 introduces new rights for zero-hours workers, including the right to request a more predictable working pattern and (under proposed measures) the right to a guaranteed-hours contract offer after 12 weeks. Workers misclassified as self-employed when they are in practice workers can bring claims in the Employment Tribunal for NMW arrears and unpaid holiday pay. Contact Acas (0300 123 1100) for free advice.

What it means in practice. The label on the contract does not decide your rights — what you actually do does. Most people on zero-hours arrangements are "workers", which brings the minimum wage, paid holiday, rest breaks, protection from discrimination, and whistleblowing protection. Some, in reality, are employees, because in practice they are expected to accept shifts and work under close direction; if so, the full package including unfair dismissal after the qualifying period applies. Holiday accrues on every hour worked, and since 6 April 2026 Statutory Sick Pay is a day-one right with no earnings threshold, which matters enormously for people whose hours fluctuate.

A worked example. Kieran is on a zero-hours contract at a warehouse but has worked between 30 and 38 hours every week for nine months, always the same shifts, always told when to attend. His contract calls him a casual worker with no obligation on either side. In reality there is a settled pattern and an expectation on both sides. That pattern is strong evidence of employee status, which would give him continuity of service, notice, and eventually unfair dismissal protection. It also means his holiday pay should reflect his actual average earnings, not a nominal basic rate.

Common pitfalls. Being told you cannot work anywhere else is the most common unlawful term — exclusivity clauses in zero-hours contracts are unenforceable, and dismissing or penalising someone for breaching one is itself unlawful. Losing shifts after raising a complaint is the second: informal "zeroing down" is a detriment that can be challenged in the same way as a formal sanction. Third, many people never claim the holiday they have accrued because they assume irregular hours mean no entitlement. They do not.

How it relates to other terms. The core question is worker status, which decides which rights you hold. Zero-hours staff are entitled to the National Minimum Wage for every working hour, and people supplied through an agency should also read agency worker, since the Agency Workers Regulations add equal treatment on pay after twelve weeks. Any tribunal claim starts with Early Conciliation.

What to do next. Read our zero hours contracts guide to check which rights you already hold, and employee versus worker status if your hours have settled into a regular pattern. Where you are supplied by an agency, agency worker rights explains the twelve-week equal treatment rule.