Record High Zero-Hours Workers in Precarious Work Despite Pending Crackdown

The number of zero-hours workers in the UK has reached a record high, despite the government’s planned crackdown on insecure working practices. New research suggests that more than 1.2 million people are now working on zero-hours contracts as their main job. The increase comes at a time when the Employment Rights Act 2025 is expected to introduce significant changes aimed at reducing one-sided flexibility in the labour market.

The figures raise an important question: if reform is coming, why is precarious work still increasing? Read on as we discuss this question in more detail and examine the recent findings. We outline how the upcoming changes may impact employers, and the steps individuals can take if their rights are breached.

If you have any concerns about your employment rights, get in touch with Redmans Solicitors today. As specialists in the sector, we can assess your case, provide answers, and discuss your options going forward.

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Work Foundation Findings: Zero-Hours Contracts at a Record Level

Record Numbers of Zero-Hours Workers

Recent analysis by the Work Foundation at Lancaster University shows that approximately 1.23 million people are engaged on zero-hours contracts as their primary employment. This is the highest number recorded to date.

The rise is not marginal. It represents a significant year-on-year increase and suggests that reliance on variable contracts remains embedded in sectors such as hospitality, retail, health and social care.

Zero-Hours Workers: Who Is Most Affected?

The data also highlights who is most affected. Young workers aged between 16 and 24 are significantly more likely to be on zero-hours contracts than older age groups. Women are also disproportionately represented, reflecting patterns seen across lower-paid and service-led industries.

Although zero-hours arrangements are often described as offering flexibility, many individuals depend on them as their main source of income. A notable proportion of workers regularly work hours that resemble full-time employment, but without the security of guaranteed pay.

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This has led commentators to describe the system as providing “one-sided flexibility”. Employers retain control over scheduling, while workers shoulder the financial risk of fluctuating demand.

What Are Zero-Hours Contracts?

How Zero-Hours Contracts Operate

Zero-hours contracts are lawful in the UK. They are contracts under which an employer is not required to provide a minimum number of working hours, and the individual is usually not obliged to accept work offered. In theory, this arrangement can benefit both parties. Some workers value the ability to accept or decline shifts depending on their availability.

In practice, however, the reality can be different. Workers may feel under pressure to accept shifts to avoid being overlooked for future work. Furthermore, income can vary dramatically from week to week, making financial planning difficult. The issue is therefore not simply about flexibility; it is about predictability and security.

Employment Status and Legal Rights of Zero-Hours Workers

Importantly, individuals on zero-hours contracts can still have statutory rights. Whether they qualify for particular protections depends on their employment status, which is determined by the reality of the working relationship rather than just the wording of the contract.

Some zero-hours staff are legally classified as “employees”. Others are “workers”. The distinction matters because employees benefit from wider protections, including protection from unfair dismissal after the relevant qualifying period. Despite this, workers are still entitled to key rights such as paid annual leave, the National Minimum Wage, rest breaks and protection from discrimination.

The Employment Rights Act 2025: What Is Changing?

Guaranteed Hours Based on Working Patterns

The government has made reform of zero-hours contracts a central feature of its Employment Rights Act 2025. The legislation does not ban zero-hours contracts outright. Instead, it seeks to prevent situations where individuals consistently work regular hours without any contractual security.

Read More: New Employment Rights Bill Enters ‘Ping Pong’ Stage After Lords Reject Day-One Unfair Dismissal and Zero-Hours Reforms

Under the new framework, employers will be required to offer guaranteed hours to qualifying workers who have worked a regular pattern over a defined reference period. While the precise details will be confirmed in secondary legislation, the intention is clear: if someone is effectively working stable hours, their contract should reflect that reality.

Shift Notice and Compensation Rights

The Act also introduces new protections, expected to include the right to reasonable notice of shifts and compensation where shifts are cancelled or changed at short notice, subject to the final regulations.

These changes are designed to reduce the uncertainty that often characterises zero-hours working. Last-minute cancellations can have serious consequences for workers who have arranged childcare or turned down other opportunities.

The Department for Business and Trade has indicated that further guidance will clarify how the new rights will operate in practice. As with many employment reforms, the impact will depend heavily on how tribunals interpret and apply the legislation.

Why Are Zero-Hours Contracts Still Increasing?

Economic Pressures on Employers

The rise in zero-hours workers despite impending reform may reflect economic pressures. Businesses facing cost increases, fluctuating demand, and ongoing economic uncertainty may rely more heavily on flexible staffing arrangements to manage risk.

It is also possible that some employers are adjusting their workforce models ahead of legislative change, although the long-term effect of this remains to be seen. What is clear is that the labour market remains divided between those with stable, predictable employment and those without guaranteed income.

The new reforms aim to address that imbalance. However, until they are fully implemented and enforced, zero-hours contracts remain lawful and widely used.

What This Means for Employers

Reviewing Working Patterns and Contracts

Employers who rely on zero-hours arrangements should begin preparing for the forthcoming changes.

An important first step is reviewing working patterns. If individuals are regularly working similar hours over sustained periods, this may trigger an obligation to offer guaranteed hours under the new regime. Businesses should also assess their scheduling practices. The introduction of compensation for short-notice cancellations could require more careful workforce planning and clearer internal processes.

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It is equally important to review contractual documentation and employment status classifications. Misclassifying staff or failing to recognise when statutory rights apply can expose employers to tribunal claims.

Balancing Flexibility and Compliance

At the same time, flexibility will not disappear entirely. Some workers genuinely prefer variable hours. The challenge for employers will be ensuring that flexibility operates in a genuinely mutual way rather than disproportionately favouring the organisation.

Proactive compliance and early legal advice can reduce the risk of disputes once the legislation comes into force.

What Can Workers Do If Their Rights Are Breached?

Steps to Take Before Bringing a Claim

Even before the new reforms take effect, zero-hours workers have enforceable rights. If an individual is not paid the National Minimum Wage, is denied holiday pay, or suffers unlawful discrimination, they may have grounds for a claim in the employment tribunal.

However, before pursuing a claim, the first step is often to raise the issue internally through a grievance procedure. This may resolve the dispute without the need for litigation and can help avoid the associated stress and costs. If the matter cannot be resolved informally, though, most employment tribunal claims require the individual to engage in ACAS early conciliation first. This process aims to facilitate settlement before proceedings are issued. As a last resort, those eligible can proceed with a tribunal claim.

Time Limits and Evidence

Strict time limits apply when bringing a claim to the employment tribunal. In most cases, claims must be brought within three months less one day of the act complained of. Missing this deadline can prevent a claim from proceeding.

Workers should also keep clear records. Evidence of hours worked, cancelled shifts, communications from managers, and payment records can all be crucial in establishing a claim. Once the Employment Rights Act reforms are implemented, individuals may also be able to challenge a failure to offer guaranteed hours or seek compensation for cancelled shifts.

As the legal landscape evolves, understanding employment status and rights will become increasingly important.

A Turning Point for Precarious Work?

The record number of zero-hours workers highlights the continuing tension between flexibility and security in the UK labour market. The Employment Rights Act 2025 represents a significant attempt to rebalance that relationship. By linking guaranteed hours to actual working patterns and introducing protections around shift notice, the government aims to curb this unstable form of precarious work.

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Whether these reforms will meaningfully reduce insecurity remains to be seen. Much will depend on implementation, enforcement and awareness. For employers, preparation is key. For workers, knowledge of existing and upcoming rights is essential.

If an employee or worker is concerned about their rights under a zero-hours contract, or an employer is seeking advice on compliance with forthcoming reforms, obtaining specialist employment law advice at an early stage can help clarify one’s position and reduce risk.

Zero-Hours Workers: Get Help with Redmans

If you believe you have experienced issues at work relating to a zero-hours contract, get in touch now. Redmans Solicitors are employment specialists, and after a quick chat, we can provide expert advice. We can also assess your eligibility to make a claim and guide those eligible through the process.

To begin your journey with us today, please:

• Call us directly on 020 3397 3603
• Complete our online form to request a callback