Zero-Hours Contracts: What the New Act Means for You
Ending "One-Sided Flexibility"
The Employment Rights Act 2025 will not ban zero-hours contracts, but it introduces major reforms to tackle what the Government calls "exploitative" practices. These changes, expected in 2027, are designed to give workers on zero-hours and low-hours contracts more predictability and security.
Is Your Business Ready for the Biggest Shift in Employment Law?
What's New?
The Act creates a package of new rights for these workers, including those engaged via agencies:
A right to a stable contract: Workers will have the right to a contract that reflects the hours they regularly work, based on a 12-week reference period.
Notice for shifts: You will be required to give workers reasonable notice of their shifts and working times.
Compensation for cancelled shifts: Workers will be entitled to compensation if you cancel or cut short their shifts with limited notice.
A right to be informed: You must provide workers with information about these new rights, both when they start and throughout their employment.
How to Prepare: Actions for Employers
To ensure compliance and a safe working environment under the new sexual harassment provisions of the Employment Rights Act 2025, employers should consider the following actions:
Update Policies & Procedures: Revise anti-harassment, bullying, and whistleblowing policies to explicitly reflect the "all reasonable steps" duty, third-party liability, and protected disclosure status.
Comprehensive Training: Deliver thorough training to all employees, especially managers, on recognizing and preventing sexual harassment, including awareness of third-party risks and the new legal responsibilities.
Conduct Risk Assessments: Identify and assess potential risks of sexual harassment, including those involving third parties, and implement robust control measures to mitigate them.
Strengthen Reporting Mechanisms: Ensure clear, accessible, and confidential channels for reporting sexual harassment and protected disclosures, assuring employees of no detriment for coming forward.
Review Contracts and Agreements: Examine contracts with third parties to include clauses that promote respectful conduct and outline consequences for harassment.
Promote a Culture of Respect: Foster an organizational culture that actively discourages harassment, values diversity, and promotes respect and dignity for all individuals.
Employment Rights Act 2025 Download a summary
After more than a year of debate, the Employment Rights Bill became law on 18 December 2025 as the Employment Rights Act 2025. This is the biggest shake-up of employment law in a generation, with over 28 changes rolling out between December 2025 and into 2027. While this phased approach to the reforms gives employers time to prepare, now is the moment to get ahead. Explore what’s changing and what it means for your organisation, including key updates on sickness absence, paternity leave, parental leave, trade union access, and more.
Prepare for the Employment Rights Act 2025
The Employment Rights Act 2025 ushers in the most significant changes to UK employment law in a generation. Our CIPD HR-inform Pro product service is designed to be your essential guide, providing comprehensive resources, expert advice, and practical tools to ensure your business remains compliant and agile.
WARNING: New Fair Work Agency Powers!
The new Fair Work Agency is set to dramatically change the landscape of employment law enforcement. With unprecedented powers to recover underpayments and initiate tribunal claims on behalf of employees, your business could face significant financial penalties and legal battles if you're not fully compliant.
Are You a Small Business Owner?
You didn't start a business to become an employment lawyer. The Employment Rights Act 2025 adds layers of complexity to hiring and managing staff. CIPD HR-inform Pro acts as your virtual HR department, giving you the contracts, policies, and answers you need, so you can focus on growth
HR Managers are Busy Enough
The Employment Rights Act 2025 is the biggest legislative shift in years. You need more than just news; you need actionable tools. CIPD HR-inform Pro provides the technical breakdowns, the model policies, and the strategic roadmaps to help you guide your leadership team through these changes with confidence.