Are you ready for zero-hour contract law changes?

Travel Weekly has teamed up with leading industry employment lawyer Ami Naru for a regular column offering answers to readers’ legal questions on employment/HR matters. Ami will cover the latest employment issues facing the industry and respond to questions and dilemmas posed by you. In this column, Ami answers a question about expected changes to zero-hour contracts.

Q.

We use zero-hour and casual contracts during busy periods, especially in the summer, and have heard about planned changes to the law in this area. Will we still be able to use these contracts, and what should we be aware of?

A.

There has been a lot of news about exploitative zero-hour contracts recently, and while it does not seem that they will be banned, employers should be aware that zero and low-hour contracts are going to become harder to rely on in their current form.

On July 1, the government published its roadmap for the implementation of the Employment Rights Bill. Under the Bill, which is expected to come into force in 2027, the government has proposed new rights for workers on zero-hour or casual contracts.

The aim is to reduce insecurity around work and encourage more predictable working patterns. Currently, power and control lies very much with employers. If passed in its current form, the Bill will introduce a right for qualifying workers to be offered guaranteed hours after a certain period (likely 12 weeks).

Workers will still be able to decline the offer of work if it does not suit, but where someone is regularly working a set pattern, employers may have to formalise that arrangement. There will also be new rights to reasonable notice of shifts and compensation where shifts are cancelled at short notice. A new route to bring tribunal claims for non-compliance will also be introduced.

There may be exceptions; for example, where the need for casual work is genuinely temporary. However, exceptions are expected to be narrow.

Amendments have been proposed in Parliament to soften the Bill (including changing the duty to a “right to request” guaranteed hours rather than an employer having a duty to offer guaranteed hours), but they currently lack government backing and are unlikely to pass. Final details will be confirmed through secondary legislation, but employers should prepare for stricter rules in this area.

While the Bill has support and is expected to pass in its current form, details are still being finalised. The precise rules around what counts as a regular pattern, how much notice is considered reasonable and how compensation for cancelled shifts will work are all due to be set out in secondary legislation. We may also see further clarification around exceptions for short-term and seasonal roles. Employers should monitor developments closely and be ready to adapt once the final regulations are published.

Many businesses in the travel and tourism industry rely on casual and seasonal staffing, whether for resort workers, customer service teams or airport operations. These changes could significantly increase admin, costs and legal risk where casual workers are engaged for longer periods or on a regular basis. While the contracts themselves won’t be unlawful, their use will need to be more carefully managed. Employers in the travel industry should start reviewing their workforce requirements now and consider tracking working patterns to ensure they can identify when a guaranteed hours offer might be triggered.

It’s also worth reviewing any internal policies or manager guidance around shift allocation and cancellations, as well as contracts currently in use. With time to plan, businesses can continue to use flexible staffing models, but the current approach will need to evolve.

■ This article is not a substitute for formal legal advice