Zero hours contract reforms are heading for every pub, cafe, shop and restaurant that leans on flexible shifts, and the businesses affected have only until Tuesday 25 August 2026 to tell the Government what they think.
UKHospitality is urging operators to respond to the Government’s live consultation on zero hours contract reforms under the Employment Rights Act, warning that how these contracts are managed in future is “undoubtedly one of the most significant” changes facing the sector.
The consultation seeks views on proposals that would oblige businesses to offer guaranteed hours contracts to eligible zero hours staff, give reasonable notice of shift patterns, and pay compensation for shifts that are cancelled or changed at short notice. The response deadline is Tuesday 25 August 2026, and any employer using flexible rotas has a direct stake in the outcome.
Why this matters to small employers
Hospitality and retail run on the ability to flex staffing around footfall, weather and seasonal trade. That flexibility is exactly what these rules would tighten. For a small operator with thin margins, the concern is twofold: the cost of guaranteeing hours you may not always need, and the administrative burden of tracking shift changes and compensation.
UKHospitality argues that the proposals as drafted could act as a barrier to the number of jobs and hours businesses offer, and that the effect may be more job instability rather than the certainty ministers intend. It says young people and those with fewer qualifications, for whom hospitality is often a first foot on the ladder, would be hit hardest.
What UKHospitality is asking for
The trade body is still finalising its full response, but it has set out clear positions. It wants implementation delayed until at least October 2028, given the financial pressure the sector already faces. It argues the threshold for guaranteed hours should be set at eight hours a week or fewer, to genuinely capture low-hours workers, and that eligibility should require regular work: at least 10 of every 12 weeks and at least 20% above contracted hours.
Crucially for seasonal businesses, it wants the reference period used to calculate guaranteed hours set at 26 or 52 weeks, long enough to reflect quiet winters and busy summers rather than locking in staffing at a peak.
These reforms sit alongside the wider changes covered in our guide to day-one employment rights, and they land while many hospitality and high-street firms are already lobbying hard on costs, as the beauty industry’s push on business rates shows. If you are unsure whether the rules even apply to you, our explainer on what counts as a small business in the UK is a sensible starting point.
The practical takeaway
Responding takes an afternoon, not a fortnight, and individual operators carry weight that a trade body alone does not. Before 25 August, work out how many of your staff are on zero hours contracts, how variable their weekly hours actually are, and what guaranteeing those hours would cost you across a full year. Then submit those numbers to the consultation. Concrete figures from a real business are exactly what shapes final rules, and the alternative is living with whatever gets decided without you.
