Workforce flexibility remains one of the biggest talking points in UK HR in 2026, particularly for employers who rely on zero hours, low hours, casual or agency workers.
For many organisations, flexible staffing arrangements are essential. Sectors such as hospitality, retail, care, logistics, leisure and events often need to respond quickly to changing customer demand, seasonal peaks, staff absence and operational pressures. Many workers also value flexibility, especially where it helps them balance work with study, childcare, caring responsibilities or other commitments.
However, the legal direction is clear. The UK Government is moving towards a framework that gives workers more predictability and protection, particularly where flexible contracts create uncertainty around hours, income and cancelled shifts.
As of May 2026, the key point for employers is this: the new guaranteed hours and shift cancellation rights are not yet in force, but they are expected to come into effect in 2027. Acas confirms that workers on zero-hour and low-hour contracts will have the right to guaranteed working hours if they want them, and that workers will also have the right to be paid if a shift is cancelled, moved to another date, or cut short by an employer.
For HR teams and business owners, 2026 is therefore a preparation year. The businesses that start reviewing contracts, rota practices and workforce planning now will be in a far stronger position when the new rules arrive.
Why guaranteed hours are being introduced
The reforms form part of the Employment Rights Act 2025, which received Royal Assent in December 2025 and introduced a wide package of workplace changes. The Government’s aim is to tackle what it describes as one-sided flexibility, where employers benefit from flexible staffing, but workers carry too much of the uncertainty. Government guidance confirms that the Act introduces rights to guaranteed hours, reasonable notice of shifts, and payments for short notice cancellation of shifts, with corresponding rights for agency workers.
The issue is not flexibility itself. Flexibility can work well for both employers and workers when it is genuinely mutual. The concern is where someone regularly works predictable hours in practice, but their contract offers no security. In those cases, the new rules are intended to give workers a more stable baseline while still allowing businesses to manage genuine fluctuations in demand.
For employers, this means the question is shifting from “Can we use zero hours contracts?” to “Are we using flexible contracts fairly, accurately and transparently?”
What guaranteed hours are expected to mean
A key part of the reform is expected to be a duty on employers to offer guaranteed hours to qualifying workers based on the hours they regularly work over a reference period. The exact detail will be confirmed through further regulations, but many employment law updates continue to refer to an expected 12-week reference period.
In simple terms, if a worker is contracted on a zero-hours or low hours basis but regularly works a consistent number of hours, the employer may need to offer a contract that reflects that working pattern.
This does not necessarily mean zero-hour contracts will disappear altogether. Acas states that workers will get the right to guaranteed working hours if they want them. This is an important distinction. Some workers may prefer to remain on a flexible arrangement. However, employers will need clear processes for making offers, recording responses and ensuring workers understand their options.
Who is likely to be affected
The reforms are expected to apply to workers on zero-hour and low-hour contracts. Agency workers are also expected to be covered, which is particularly important for employers who rely heavily on agency labour to manage fluctuating demand.
This could affect a wide range of employers, including those in retail, hospitality, health and social care, facilities management, education support, manufacturing, events and logistics.
Even if your organisation does not think of itself as using “zero hours contracts”, it is still worth reviewing any arrangement where hours vary significantly or where employees and workers do not have a stable contractual pattern. Low-hours contracts, annualised hours arrangements, and casual worker models may all need closer attention.
Why May 2026 is the right time to prepare
Although the new rights are expected in 2027, waiting until the final rules are in force could leave employers under pressure. The Government has confirmed that the implementation of Employment Rights Act measures will be phased, with many details still being developed through consultation and regulations.
That gives employers time, but it should not be mistaken for a reason to delay. Good preparation takes time. Contracts may need reviewing. HR systems may need updating. Managers may need training. Rota processes may need tightening. Payroll and scheduling data may need to become more accurate and easier to evidence.
For HR teams, the smartest approach in May 2026 is to treat this as a readiness project rather than a last-minute compliance exercise.
The importance of accurate working hours data
Guaranteed hours rights will rely heavily on evidence of hours actually worked. That means accurate records will become even more important.
Employers should be able to show who worked, when they worked, what they were offered, what they accepted and whether any pattern emerged over time. If your rota system, payroll records and HR records do not currently align, now is the time to address that.
Poor data creates risk. If an employer cannot confidently identify regular working patterns, it may struggle to make accurate guaranteed hours offers. It may also find it harder to defend decisions if a worker later challenges the process.
Reasonable notice of shifts
Alongside guaranteed hours, the reforms also introduce the principle of reasonable notice for shifts. This means employers will need to think more carefully about how far in advance rotas are issued and how changes are communicated.
The final definition of “reasonable notice” is still expected to be confirmed through regulations. However, the direction is clear. Last-minute rota changes are likely to become more legally sensitive, especially where workers lose income or struggle to plan childcare, travel or other commitments.
For employers, this means rota planning should become more structured. Managers should avoid treating shift changes as informal arrangements that can be made casually by text or verbal conversation. There should be a clear process for issuing rotas, approving changes and recording communication.
Payments for cancelled, moved or shortened shifts
The third major change is the right to payment where a shift is cancelled, moved or cut short at short notice. Acas confirms that this right is expected to happen in 2027.
This is likely to have a practical and financial impact on businesses that currently cancel shifts regularly when demand drops. Once compensation is required, over-scheduling and cancelling later may become far more expensive.
For employers, this should prompt a review of demand forecasting. If your business regularly schedules more staff than needed and then cancels shifts late, you may need to find a more reliable planning model.
This is not only about legal compliance. Frequent cancellations can damage morale and retention. Workers who cannot rely on their hours are more likely to disengage or seek work elsewhere.
What employers should review now
The first step is to audit your workforce. Identify anyone engaged on zero hours, low hours, casual or variable hours arrangements. Look at the contract, but also look at the reality. If someone regularly works the same number of hours each week, that pattern matters.
The next step is to review your rota practices. Consider when rotas are issued, how changes are made, how cancellations are handled and whether workers receive consistent communication.
Contracts and written statements should also be reviewed. Employers should ensure the wording accurately reflects the working relationship and does not create confusion. Any flexibility clauses should be clear, reasonable and used appropriately.
It is also sensible to train line managers now. These reforms will be felt most strongly in day-to-day scheduling decisions. If managers do not understand the rules, even a well-written policy may fail in practice.
Why this matters for employee relations
Predictability is not only a legal issue. It is also a people issue.
Workers who feel they are treated fairly are more likely to stay, engage and perform well. Workers who experience constant uncertainty may feel undervalued, even if the arrangement is technically lawful.
The new rights should therefore be seen as an opportunity to improve workforce planning and employee trust. Employers who communicate early and openly will be in a stronger position than those who wait until workers start asking questions.
How HRM Derbyshire Peaks can help
At HRM Derbyshire Peaks, we support UK employers with practical, people-focused HR advice that keeps businesses compliant while recognising the realities of day-to-day operations.
If your organisation uses zero-hours, low-hours, casual, or agency workers, now is the time to review your approach. We can help you audit current arrangements, update contracts, review rota processes, train managers and prepare for the guaranteed hours and shift cancellation changes expected in 2027.
Final thoughts
Guaranteed hours and shift cancellation rights are not yet in force, but they are firmly on the horizon. As of May 2026, employers should use this period to properly prepare.
The organisations that act now will be better placed to adapt smoothly, manage costs, reduce disputes and protect employee relations when the new rules arrive.
If you would like tailored support preparing for the upcoming changes, contact HRM Derbyshire Peaks today for expert HR guidance.