UK Zero Hours Contract 2026

If you’re one of the many workers in the UK on a zero hours contract, you may be wondering about your rights to holiday pay, minimum wage, and protection from unfair treatment. In this article, we’ll explore the laws and regulations that apply to zero hours contracts in the UK, including the National Minimum Wage Act 1998 and the Working Time Regulations 1998.

What is a Zero Hours Contract?

A zero hours contract is a type of employment contract where the employer does not guarantee the worker a set number of hours of work per week. Instead, the worker is expected to be available to work on an as-needed basis, and the employer will offer them shifts or hours as they become available. This type of contract is often used in industries such as retail, hospitality, and healthcare. Under the Employment Rights Act 1996, Section 230, a worker on a zero hours contract is considered to be an employee, and is therefore entitled to certain rights and protections. For example, the National Minimum Wage Act 1998 requires employers to pay workers at least the minimum wage for all hours worked, including time spent on call or waiting to work.

Key takeaway: Workers on zero hours contracts are entitled to the same rights and protections as other employees, including the minimum wage and holiday pay.

Holiday Pay and Zero Hours Contracts

Workers on zero hours contracts are entitled to paid holiday time, just like other employees. The Working Time Regulations 1998 require employers to provide workers with at least 28 days of paid holiday per year, including bank holidays. To calculate holiday pay, employers must use the worker’s average earnings over the previous 52 weeks, including any overtime or bonus payments. This is set out in the Employment Rights Act 1996, Section 221. For example, if a worker on a zero hours contract has worked an average of 20 hours per week over the previous 52 weeks, and their hourly rate is £10, their holiday pay would be £200 per week (20 hours x £10 per hour). The UK Supreme Court has also ruled that workers on zero hours contracts are entitled to backdated holiday pay, in the case of Harpur Trust v Brazel (2022).

Key takeaway: Workers on zero hours contracts are entitled to paid holiday time, and employers must calculate holiday pay based on the worker’s average earnings over the previous 52 weeks.

Minimum Wage and Zero Hours Contracts

The National Minimum Wage Act 1998 requires employers to pay workers at least the minimum wage for all hours worked, including time spent on call or waiting to work. The minimum wage rates for 2026 are £10.42 per hour for workers aged 23 and over, £9.30 per hour for workers aged 21-22, and £6.83 per hour for workers under 21. Employers who fail to pay the minimum wage can face penalties of up to £20,000 per worker, under the National Minimum Wage Act 1998, Section 19. The UK government has also introduced the Good Work Plan, which includes measures to improve transparency and fairness in the labour market, including the right to a written statement of terms and conditions for all workers, including those on zero hours contracts.

Key takeaway: Employers must pay workers on zero hours contracts at least the minimum wage for all hours worked, and can face penalties for non-compliance.

Unfair Treatment and Zero Hours Contracts

Workers on zero hours contracts are protected from unfair treatment by the Employment Rights Act 1996, which includes provisions on unfair dismissal, discrimination, and whistleblowing. The Act also provides workers with the right to make a complaint to an employment tribunal if they believe they have been treated unfairly. For example, if a worker on a zero hours contract is dismissed without notice or without a fair reason, they may be able to claim unfair dismissal under the Employment Rights Act 1996, Section 94. The UK Equality Act 2010 also protects workers from discrimination on the basis of characteristics such as age, sex, and disability.

Key takeaway: Workers on zero hours contracts are protected from unfair treatment, including unfair dismissal and discrimination, and can make a complaint to an employment tribunal if necessary.

Practical Steps for Workers on Zero Hours Contracts

If you’re a worker on a zero hours contract, there are several practical steps you can take to protect your rights and ensure you’re being treated fairly. First, make sure you have a written statement of terms and conditions, which should include details of your pay, hours, and holiday entitlement. You should also keep a record of all hours worked, including any time spent on call or waiting to work, and make sure you’re being paid at least the minimum wage for all hours worked. If you believe you’re being treated unfairly, you should make a complaint to your employer in writing, and consider seeking advice from a trade union or employment lawyer. The UK Advisory, Conciliation and Arbitration Service (ACAS) also provides free advice and guidance for workers on employment rights and procedures.

Key takeaway: Workers on zero hours contracts should keep a record of all hours worked, and seek advice from a trade union or employment lawyer if necessary.

Frequently Asked Questions

What is a zero hours contract?

A zero hours contract is a type of employment contract where the employer does not guarantee the worker a set number of hours of work per week.

Am I entitled to holiday pay on a zero hours contract?

Yes, workers on zero hours contracts are entitled to paid holiday time, including bank holidays.

What is the minimum wage for workers on zero hours contracts?

The minimum wage rates for 2026 are £10.42 per hour for workers aged 23 and over, £9.30 per hour for workers aged 21-22, and £6.83 per hour for workers under 21.

Can I claim unfair dismissal if I’m on a zero hours contract?

Yes, workers on zero hours contracts are protected from unfair dismissal, and can make a complaint to an employment tribunal if necessary.

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