Beyond zero & low hours contracts — how can hospitality work remain flexible?

The Government’s consultation on “ending one-sided flexibility” marks one of the most significant developments in employment law for the hospitality sector in recent years. 

While there isn’t an outright ban on zero or low hours contracts, the proposals signal a move towards greater predictability and security, as well as more formalised working arrangements.

So, how can hospitality businesses balance complying with the new framework and preserving the flexibility of their workforce? Amber Ward explores.

Not a ban but a reset

At the heart of the consultation is a recognition that flexibility has, in some cases, been “one-sided”, with workers bearing the uncertainty of fluctuating hours and income.

The Government’s proposed framework centres on three core rights for qualifying workers:

1. Guaranteed hours, based on working patterns over a reference period.
2. Reasonable notice of shifts.
3. Compensation where shifts are cancelled, curtailed or moved at short notice.
    

These measures are intended to introduce predictability and security while still enabling those who value flexibility to retain it. This balance is important in all sectors — but in hospitality, it’s essential.

Why hospitality is different

Few sectors rely as heavily on flexible labour as hospitality. From weekend peaks and seasonal demand to weather-driven footfall and major events, the business model depends on responding quickly to fluctuating demand.

This flexibility plays an important role in supporting a wide range of workers, including students, working parents and those with caring responsibilities. It’s also an operational necessity. A sudden heatwave, sporting fixture, rail strike or unexpected surge in bookings can transform demand overnight. Any regulatory framework needs to reflect this reality to avoid unintended consequences.

This is why there’s genuine tension at the centre of these reforms. Too little regulation risks continued instability for workers. Too much risks undermining the flexibility on which the sector relies.

Although much of the detail remains subject to consultation, the likely impact is becoming clearer. Businesses must move away from more informal or reactive workforce planning and towards a more structured, data-led approach.

What the changes mean in practice

Guaranteed hours

Employers will be required to offer contracts that reflect individuals’ actual working hours over an initial reference period (the Government’s preference is 12 weeks, although this remains under consultation).

For hospitality, this raises immediate questions such as how seasonal fluctuations should be reflected and whether a 12-week period is too short to capture genuine demand cycles.

There’s a growing view within the sector that longer reference periods (for example, 26 weeks) would provide a more accurate picture of typical working patterns.

Notice of shifts

The requirement to provide reasonable notice is likely to make last-minute rota changes (which are currently common in the sector) more difficult to manage. 

While this will provide greater certainty for workers, businesses must rethink how they plan and structure their rotas — particularly where demand remains unpredictable.

Cancellation payments

The proposed right to compensation for short-notice changes is likely to have a direct impact on how shifts are managed in practice. 

For operators already working within tight margins, this could be one of the most impactful elements of the reforms.

Balancing opportunity & cost

It’s easy to view these reforms primarily through the lens of increased cost and reduced flexibility. Compliance will require investment — whether in systems, training or more structured processes. However, there’s also a broader strategic opportunity.

A more predictable and stable working environment can help to address some of the sector’s long-standing challenges, particularly around staff retention and turnover. Greater certainty may also support improved engagement and productivity, while helping to shift perceptions around job security.

There are early examples across the sector of businesses moving towards hybrid models that combine guaranteed hours with the ability to offer additional flexible shifts. Such approaches can provide the operational agility that businesses need alongside greater stability for workers. The proposed reforms are likely to accelerate this trend.

Getting the detail right

Much of the real impact will depend on the detail that’s still to be determined through the consultation process.

This includes the:

• hours threshold for low-hours workers
• regularity of working hours during the reference period to qualify
• length of the initial and subsequent reference periods
• definition of “reasonable notice”.

These aren’t just technical details. They’ll each have a major influence on whether the changes will actually achieve the objective of ending one-sided flexibility or end up being a damp squib.

Striking the right balance between worker protection and operational flexibility will be key to ensuring that the reforms deliver on their intended benefits without creating unintended challenges. In other words, can legislation eliminate one-sided flexibility without eliminating flexibility itself?

What should businesses be doing now? 

This is an important opportunity for hospitality businesses to engage. The consultation is your chance to influence how these rights are implemented and ensure that the realities of managing a hospitality business are properly reflected. Have your say before 25 August 2026.

Yet while the detail is being finalised, there are some practical steps that businesses can start considering now:

1. Review current working patterns. Many workers on zero or low hours contracts may already be working regular hours, so understanding this will help you to identify where guaranteed hours obligations may arise.
2. Take a more forward-looking approach to rota planning. Reducing your reliance on last-minute changes may help to manage the impact of notice requirements and potential cancellation payments.
3. Consider whether your current workforce model remains fit for purpose. Hybrid approaches may offer a more balanced framework in the future.
4. Support and train your managers. Much of this will play out in day-to-day decision-making around rotas, shifts and communication with staff, so ensuring that managers understand the new requirements and how to apply them in practice will be essential.

Talk to us

If you’d like more information about these changes and how best to manage your workforce, talk to our award-winning employment team.

From reviewing and drafting contracts of employment to running training sessions and resolving disputes, we have the expertise that you need to prepare for the changes ahead.

Give us a call on 0333 004 4488, send us an email at hello@brabners.com or message our team today.

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