Zero Hours Contract Guide
Everything you need to know about zero hours contracts in the UK: your rights, holiday and sick pay, minimum wage, and what the Employment Rights Act 2025 changes. Includes a free pay calculator.
Zero Hours Pay Calculator
Enter your hourly rate and typical hours to estimate your gross weekly and annual pay, see how much holiday pay you build up, and check your rate meets the National Minimum Wage.
Pay & Holiday Calculator
Estimate gross earnings and holiday accrual on variable hours.
Zero Hours at a Glance
Key facts every worker should know
No Guaranteed Hours
Your employer does not have to offer you any work, and you do not have to accept every shift. You are paid only for hours actually worked.
Minimum Wage Still Applies
You must be paid at least the National Minimum Wage or National Living Wage for your age, which is £12.71 an hour for those aged 21 and over.
Holiday Accrues Automatically
You build up paid leave at 12.07% of the hours you work, equal to 5.6 weeks a year for a full-year worker.
Free to Work Elsewhere
Exclusivity clauses are unenforceable. You can take work from other employers without penalty.
What Is a Zero Hours Contract?
A plain-English explanation of how these flexible arrangements work in the UK.
Definition
A zero hours contract is an arrangement where an employer does not guarantee you a minimum number of working hours. Work is offered as and when it is needed, and in most cases you can turn shifts down without penalty. You are paid only for the hours you actually work.
These contracts are common in hospitality, retail, social care, education, events and the gig economy. Around one million people in the UK work on them, according to official labour market estimates.
Employee, worker or self-employed?
The label in your paperwork does not decide your status. What matters is how the arrangement works in practice: whether you are required to accept work, how much control the business has, and whether you can send someone else in your place.
Most zero hours staff are classed as workers, which gives them core rights such as the minimum wage, paid holiday and rest breaks. Some are employees, who also get rights like statutory redundancy pay and protection from unfair dismissal once they meet the service requirements. If you think you have been given the wrong status, Acas can advise you.
Written terms from day one
Every worker, including those on zero hours, is entitled to a written statement of their main terms from their first day. It should cover pay, how your hours are worked out, holiday and notice arrangements.
Zero Hours Contracts: Pros and Cons
They suit some people well and others badly. Here is how the trade-off looks from the worker’s side.
Advantages
Where flexibility works in your favour
- Flexibility. You can often turn down shifts to fit around study, caring or other jobs.
- Work for several employers. Exclusivity clauses cannot be enforced.
- Easy entry. A useful way to gain experience or earn extra income.
- Core protections apply. Minimum wage and holiday pay are still your right.
Disadvantages
Where the risks sit
- Unpredictable income. Hours and pay can change from week to week.
- Short-notice cancellations. There is currently no general right to pay for a shift cancelled late.
- Harder to plan. Renting, borrowing or budgeting can be more difficult without a steady income.
- Fewer rights if you are a worker. Redundancy pay and unfair dismissal protection generally need employee status.
Your Rights on a Zero Hours Contract
A summary of what most zero hours workers can expect in 2026. Some rights depend on whether you are classed as an employee or a worker.
| Right | Applies? | What it means for you |
|---|---|---|
| National Minimum Wage | Yes | £12.71 (21+), £10.85 (18–20), £8.00 (under 18 and apprentices) from 1 April 2026. |
| Paid holiday | Yes | 5.6 weeks a year, accrued at 12.07% of hours worked. Rolled-up holiday pay must be itemised on your payslip. |
| Statutory Sick Pay | Depends | Since 6 April 2026: payable from day one, no lower earnings limit, at the lower of 80% of average weekly earnings or £123.25 a week. Depends on your status. |
| Rest breaks and limits on working time | Yes | Daily and weekly rest, and an average 48-hour working week limit unless you have chosen to opt out. |
| Written statement of terms | Yes | Must be provided from your first day of work. |
| Work for other employers | Yes | Exclusivity clauses are unenforceable. You cannot be penalised for taking other work. |
| Pension auto-enrolment | Depends | Applies if you are aged 22 or over and your earnings pass the annual trigger. Earnings are assessed for each pay period. |
| Redundancy pay and unfair dismissal | Employees only | Only if you are an employee and meet the length-of-service requirements. |
| Pay for cancelled shifts | Not yet | No general legal right today unless your contract says so. New rights are expected in 2027. |
| Guaranteed hours offer | Not yet | Expected from 2027 for qualifying zero and low hours workers. |
Employment Rights Act 2025: Zero Hours Reforms
The Act does not ban zero hours contracts. It aims to end one-sided flexibility by giving qualifying workers more predictability and security.
April 2026: In force now
The National Living Wage rose to £12.71, with higher rises for younger workers. Statutory Sick Pay became payable from the first day of sickness, and the lower earnings limit was removed, extending cover to many lower-paid and zero hours workers.
Expected 2027: Guaranteed hours offer
Qualifying zero and low hours workers will have a right to be offered a contract that reflects the hours they regularly work over a reference period, expected to be 12 weeks. Workers will be able to accept or decline, and are protected from detriment or dismissal for doing so.
Expected 2027: Reasonable notice of shifts
Employers will need to give reasonable notice of shifts and any changes to them, so workers can plan their time and other commitments.
Expected 2027: Pay for late cancellations
Workers will be entitled to compensation when shifts are cancelled, moved or cut short without reasonable notice. The amounts and notice periods will be set in regulations.
Zero Hours Contract FAQ
Answers to the questions workers ask most about zero hours contracts, pay and rights.
A zero hours contract is a work arrangement where the employer does not guarantee you any minimum number of hours, and you are not obliged to accept the work offered. You are paid only for the hours you actually work.
Yes. Zero hours contracts are legal, and the Employment Rights Act 2025 does not ban them. It does add new protections, expected from 2027, including a right to a guaranteed hours offer for qualifying workers and rights to reasonable notice of shifts and compensation when shifts are cancelled at short notice.
Multiply your hourly rate by the hours you worked. Holiday pay accrues on top at 12.07% of the hours worked. For example, at £12.71 an hour for 16 hours a week, gross weekly pay is £203.36 before tax and National Insurance. The calculator above does this for you.
Yes. Exclusivity clauses in zero hours contracts have been unenforceable since 2015, so your employer cannot stop you working elsewhere or penalise you for doing so. Ordinary conflict-of-interest rules in your contract may still apply, so check the wording.
Yes. Zero hours workers are entitled to 5.6 weeks of paid statutory holiday a year. Because hours vary, holiday accrues at 12.07% of the hours you work in each pay period. Some employers pay this as rolled-up holiday pay, which must be shown as a separate line on your payslip.
You may. Since 6 April 2026, Statutory Sick Pay is payable from the first day of sickness and the lower earnings limit has been removed. It is paid at the lower of 80% of your average weekly earnings or the flat rate of £123.25 a week. Eligibility depends on your employment status, so check with Acas or GOV.UK.
Currently there is no general legal right to be paid for a cancelled shift unless your contract or company policy says so. The Employment Rights Act 2025 will introduce a right to reasonable notice of shifts and compensation for shifts cancelled, moved or cut short at short notice, expected in 2027.
It is a new right, expected in 2027, for qualifying zero and low hours workers to be offered a contract that reflects the hours they regularly work over a reference period, which is expected to be 12 weeks. You can accept or decline the offer. The detailed rules will be set out in regulations.
Most people on zero hours contracts are classed as workers, though some are employees. Your status depends on how the arrangement works in practice, not on the label in the contract. Employees have extra rights such as statutory redundancy pay and protection from unfair dismissal once they have enough service.
From 1 April 2026 the National Living Wage is £12.71 an hour for workers aged 21 and over, £10.85 for ages 18 to 20, and £8.00 for under 18s and apprentices. The same minimum rates apply to zero hours workers as to everyone else.