0-Hour Contracts UK: Legal Rights, Examples & Free Template 2024

Key Takeaways

1. A 0-hour contract allows employers to offer flexible work without guaranteeing regular hours, providing adaptability at the cost of certainty for both sides.
2. Workers on zero-hour contracts in the UK are entitled to minimum wage, statutory holiday pay, and protection under the Employment Rights Bill.
3. Unclear or outdated contract clauses can lead to disputes, loss of rights, or claims for unfair treatment.
4. Including clear terms on shift cancellation, notice periods, and exclusivity helps employers avoid legal pitfalls and maintain compliance.
5. Real-life issues with zero-hour contracts often involve rights confusion or last-minute shift changes, highlighting the need for a clear agreement.
6. Recent updates and the Employment Rights Bill have strengthened zero-hour contract rights, particularly in areas like guaranteed hours and notice for shifts.
7. Go-Legal AI offers a free, lawyer-approved zero-hour contract template and guidance to help businesses and workers stay compliant in 2024.
8. Go-Legal AI is rated Excellent on Trustpilot with over 170 five-star reviews from satisfied users.

What Is a 0-Hour Contract? (Current UK Legal Definition & Examples)

For many business owners and freelancers, zero-hour contracts remain confusing. Do they offer much-needed flexibility, or do they open the door to legal headaches? The risks are real: poorly drafted agreements can lead to last-minute shift cancellations, disputes over pay, or even claims for unfair treatment. With new legal reforms coming into force, even small mistakes in your zero-hour contracts could put your business or rights on the line.

This guide breaks down how zero-hour contracts work in practice, using real-world scenarios and the latest UK law. You’ll discover exactly which rights are protected, where common disputes arise, and how to ensure compliance in 2024.

With our step-by-step advice and a free zero-hour contract template, you can protect your interests—whether hiring staff or working under such an agreement. Our expert tools make it quick and risk-free to draft a compliant zero-hour contract.

How Do Zero-Hour Contracts Work in England & Wales?

A 0-hour contract is a flexible work agreement where the employer does not guarantee any minimum number of hours. In England and Wales, individuals working under these contracts are usually ‘workers’ rather than ’employees’, though some may gain employee status if they work regular hours or have ongoing obligations.

The contract’s main feature is flexibility. Employers offer work as required, and individuals can usually accept or decline the work, depending on their availability. However, the distinction between ‘worker’ and ’employee’ is crucial:

• Worker: Most zero-hour staff are ‘workers’, which gives them select statutory rights (like minimum wage and holiday pay) but not the full protections granted to employees.
• Employee: Becoming an employee usually means working regular shifts with an obligation to accept work, which unlocks extra protections such as redundancy pay and unfair dismissal rights.

Zero-hour contracts are common in retail, hospitality, care work, and events—sectors with fluctuating demand and unpredictable staffing needs.

What Legal Rights Do Workers Have on Zero-Hour Contracts in 2024?

Zero-hour contracts provide clear statutory rights under UK law, but the scope of rights depends on your ‘worker’ or ’employee’ status:

• National Minimum Wage: All hours worked must be paid at least the current minimum wage.
• Holiday Pay: All workers accrue paid holiday (5.6 weeks per year, pro-rata), even without guaranteed hours.
• Rest Breaks: Workers are entitled to at least 20 minutes’ break if shifts exceed 6 hours, a daily 11-hour rest, and one day off per week.
• Statutory Sick Pay (SSP): Qualifying workers earning over £123 per week are eligible for SSP.
• Protection from Unlawful Deductions: Wages cannot be unlawfully withheld or deducted.
• Right to Work Elsewhere: Exclusivity clauses are now banned in most cases. Employers cannot prevent zero-hour workers from taking other jobs.
• No Obligation for Shifts: Employers need not offer work, but workers are also not obliged to accept it.

Employees—if they gain that status from their working patterns—gain further rights such as redundancy pay, notice periods, and unfair dismissal protection.

Recent UK Legal Changes for Zero-Hour Contracts (Employment Rights Bill & Reforms)

Employers must stay up-to-date as key legislation has reshaped zero-hour contract rights:

• Employment Rights (Flexible Working) Act 2023: Zero-hour workers now have the right to request a more predictable working pattern after 26 weeks of service.
• Guaranteed Hours Request: From 2024, workers with a regular pattern can request a contract that reflects their average hours.
• Ban on Exclusivity Clauses: Most exclusivity clauses have been illegal since 2022, meaning employers cannot prevent workers from working elsewhere.
• Reasonable Notice & Cancelling Shifts: Employers must give reasonable notice for shifts and compensate workers for last-minute cancellations. Although not yet detailed by law, best practice (and ACAS guidance) is to specify this upfront.

Businesses must review and update their contracts to reflect these recent changes.

If you need to keep pace with changes, use our guided AI template builder to create or update zero-hour contracts that always match the latest law.

Zero-Hour Contracts vs. Fixed-Term and Permanent Roles

Understanding contract types is essential for making the best hiring or work choices. Here’s a comparison:

• Zero-Hour: No guaranteed hours, maximum flexibility but sometimes insecure.
• Fixed-Term: For a defined project or period, possibly full employee rights if status allows.
• Permanent: Stable, with full employment protections.

If in doubt, use our contract comparison checklist to evaluate your options before you hire or accept work.

Essential Clauses for a Zero-Hour Contract (2024 Compliant Template)

A clear zero-hour contract requires these essential clauses to protect both parties:

For a fully compliant contract, download our free zero-hour template or check your documents instantly using our AI clause checker.

How to Write a Legally Compliant 0-Hour Contract: Step-by-Step

Drafting a compliant zero-hour contract protects both you and your workers. Here’s how to get it right:

1. Identify Worker or Employee Status: Establish their employment status early—more regular hours and obligations usually qualify as ’employee’.
2. Document Hours of Work: Clearly state that no minimum hours are guaranteed. Outline how shifts are offered and accepted.
3. Specify Pay & Frequency: Confirm hourly wage, pay intervals, and compliance with minimum wage.
4. Set Out Holiday & Sick Pay: Show how leave is accrued and paid. Clarify process for sick leave and SSP eligibility.
5. Include Shift & Cancellation Terms: Set out minimum notice periods for both arranging and cancelling shifts.
6. Address Exclusivity: Make clear that workers have the freedom to work elsewhere unless an exception applies by law.
7. Show Notice Provisions: Define how the contract or assignment can be ended, by either party.
8. Add Role-Specific Clauses: Include points on confidentiality and data protection where relevant.
9. Review Against Latest Legislation: Ensure your contract aligns with current ACAS and GOV.UK guidance.

Generate, update, or review your zero-hour agreements in minutes using our interactive contract builder and instant legal review tools.

Common Zero-Hour Contract Mistakes—and How to Avoid Them

Missteps with zero-hour contracts can lead to legal action, financial penalties, and harm to your reputation:

• Unlawful Exclusivity Clauses: Including a ban on outside work is normally illegal under these contracts since 2022, except in rare situations.
  • Risk: The clause is unenforceable and invites employment tribunal challenges.
• Omitting Holiday Pay Details: Failing to explain how leave is accrued and paid exposes you to claims and back-pay.
  • Risk: Tribunals can award arrears, plus penalties for non-compliance.
• Unclear Shift Notification Rules: Sudden shift changes can spark worker complaints and financial claims for “on-call” time.
  • Risk: Courts may determine waiting periods are working time, requiring payment.
• Inadequate Record Keeping: Incomplete documentation risks breaching minimum wage, right-to-work, and tax rules.
• Assuming Limited Worker Rights: Some businesses wrongly believe zero-hour staff lack basic entitlements.

Use our contract health checker to catch these errors and avoid costly fixes down the line.

0-Hour Contract Disputes, Rights Enforcement, and Successes: Real-Life Scenarios

Go-Legal AI: Simplifying Zero-Hour Contracts for UK Businesses and Workers

Go-Legal AI exists to make zero-hour contracting straightforward and stress-free for all.

• AI Template Builder: Customise zero-hour contracts in minutes, always aligned with UK law.
• Instant Clause Checker: Upload your contract for a real-time compliance review—spot and fix missing or outdated clauses instantly.
• Guided Checklists: Follow step-by-step resources to safeguard every statutory right before hiring or signing.
• Ongoing Compliance Alerts: Receive updates when UK employment law changes, so your documents stay valid.
• Ready-Made Resources: Download the latest templates, checklists, and compliance tools for free, saving hours of research.
• Automatic Legal Updates: Our platform ensures your documents always match the current legal standards.

Whether hiring seasonal staff or working flexibly, our tools ensure every zero-hour contract is complaint, fair, and future-proof.

Frequently Asked Questions

What’s the difference between a zero-hour contract and casual work?

A zero-hour contract is a formal written agreement specifying no minimum hours, with payment only for hours worked. Casual work is often informal and may lack written terms, but must still meet legal minimums for rights and pay under UK law.

Can my employer cancel my shift at the last minute?

Yes, but the law now expects reasonable notice, and your contract should set this out clearly. Increasingly, employers are required to pay compensation for last-minute cancellations, so refer to your contract and stay informed on legal updates.

Am I entitled to statutory sick pay on a zero-hour contract?

If you’re classed as a ‘worker’ earning over £123 per week and meet government SSP criteria, you are entitled to statutory sick pay.

Are exclusivity clauses allowed in zero-hour contracts?

No, except for rare senior roles. Since 2022, banning other jobs in zero-hour contracts is generally unlawful.

What if my employer denies holiday pay?

They are breaking UK law. You are entitled to paid holiday even under zero-hour contracts. Raise the issue internally, then escalate to ACAS if unresolved.

How can I request guaranteed hours?

If you work consistent hours for 26 weeks, you can request guaranteed hours under the Employment Rights Bill. Employers must fairly consider your request.

Can I turn down work on a zero-hour contract?

Yes. You are not legally obliged to accept shifts, and employers should not penalise you for declining occasional work.

Do zero-hour workers have unfair dismissal protection?

Only if you are also classed as an ’employee’ with at least two years’ continuous service. Most zero-hour workers only receive basic protections.

Do zero-hour contracts impact pension rights?

If you’re over 22 and earn above £10,000 per year with the same employer, you’ll be auto-enrolled into the workplace pension—even on a zero-hour contract.

Where can I get a free zero-hour contract template?

Download a fully compliant, lawyer-reviewed zero-hour contract template matched to UK law using our platform.

Create a Compliant Zero-Hour Contract with Confidence

Understanding zero-hour contracts is essential to protect both your rights and your business. You now know the vital legal differences, the latest regulatory changes, and the critical clauses needed to avoid disputes, penalties, and stress. Outdated contracts and missing sections are common causes of costly problems.

With our lawyer-approved templates and instant document review tools, it’s never been easier to ensure your zero-hour contracts comply with every legal standard. And, with ongoing updates and expert resources, you can act confidently no matter how often the law changes.

Start free today—build your zero-hour contract with our AI-powered tools and ensure you comply with the latest UK legal requirements.