Employment Rights Act 2025: How do you prepare for the unknown?

by Rochelle Murinas, Managing Director of DJH People and HR Limited

There is a lot we know about the zero hours contract measures contained in the Employment Rights Act 2025 — and quite a lot we still don’t know about how they will work in practice when they are finally implemented next year.

Employment legislation never stands still — and the measures set out in the Employment Rights Act 2025 centred on zero hours contracts are a perfect example of that. Although the Act doesn’t seek to remove these types of contract and arrangements, it is clear that the intention is to create fairer and more secure working arrangements for employees. It is also raising plenty of questions for employers.

For most employers, zero hours contracts are about flexibility. They offer a way to respond to demand, cover seasonal peaks or give employees a choice over when they work. But the latest measures around offering guaranteed hours are creating new complexity — especially when the details aren’t yet finalised.

I work with many businesses that rely on flexible contracts, from retail and hospitality to professional services and manufacturing. The theme that keeps coming up in conversations with clients is simple: what does this really mean in practice for me and for my business?

Many employers are worried about what they can and can’t do. Employees are wondering whether they will finally gain the consistency they have been promised. And everyone, it seems, is trying to make sense of which parts of the measures are confirmed and which are still being decided — there is secondary legislation to follow, with an announced implementation date of 2027.

Questions, concerns and misunderstandings

For most employers, zero hours contracts are about flexibility. They offer a way to respond to demand, cover seasonal peaks or give employees a choice over when they work. But the latest measures around offering guaranteed hours are creating new complexity – especially when the details aren’t yet finalised. A consultation has been promised but has not yet opened.

The most common question I hear is: “Will I have to offer fixed hours to everyone on a zero hours contract?”

It’s an understandable concern, but the answer is not quite as simple as a yes or a no.

Under the Act, employers will be required to offer hours that reflect the actual hours worked by an individual during a defined reference period — this is still to be decided. The aim is to ensure contracts reflect genuine working patterns, offering transparency instead of indefinite uncertainty.

More importantly, the obligation sits with the employer to make the offer of hours where a regular work pattern exists. The worker can then choose whether or not to accept the hours offered, maintaining flexibility where that’s preferred.

It’s also important to remember that not every zero hours contract will be affected in the same way. For some roles, especially those that are genuinely casual in nature, the current structure may continue to make perfect sense. The key is to be clear and consistent in how you offer hours and manage scheduling, ensuring decisions are fair and documented.

For small business owners in particular, that distinction provides reassurance. The change doesn’t remove flexibility — it formalises it. But it does mean employers will need clear processes to monitor working patterns, identify when guaranteed hours should be offered and manage these discussions consistently and transparently.

Providing clarity in an uncertain environment

Many of our clients have said the same thing: “We just want to know what’s final and how we plan for that.”

Unfortunately, as with most employment law changes, there’s often a period of uncertainty. That was the case while we were waiting for the Employment Rights Bill to be passed into law (which finally happened in December 2025), and now, in relation to the low and zero hour worker measures, we are awaiting the fine print in the form of regulations before the reforms enter into force.

Rather than overwhelming clients with every draft clause or legal footnotes, my colleagues and I focus on what matters most:

• What is already confirmed.
• What is still being discussed.
• What actions (if any) are worth taking now.
• How to plan for the changes financially.

This approach helps businesses avoid overreacting or investing time and money in premature policy rewrites. Instead, it helps them plan for the possible, so that when the rules are finalised and implemented, they are ready to act with confidence.

Beyond compliance — the people impact

When we talk about legislative change, it is easy to focus purely on compliance. In reality, the conversations that matter most are about people.

One client recently asked me, “How do I manage flexibility without breaking the law?” Another wanted to know how to explain the new rules to their team without creating confusion or concern about working hours.

These are the kinds of questions that show how employment law and people management are deeply connected. A change that looks technical on paper can feel impersonal in practice, especially for small businesses where every team member counts.

That’s why a more human-centred approach is needed. This includes:

• Coaching sessions for managers on how to communicate change calmly and clearly.
• Scenario planning to help businesses anticipate when guaranteed hours may need to be offered and prepare thoughtful, consistent approaches.
• Change management content – from line manager briefings to podcasts – designed to help leaders lead with empathy.

Employers should also make better use of existing tools such as HRIS systems, finance models and communication platforms to manage scheduling transparently and track working patterns.

When both sides have visibility and trust, compliance becomes part of a broader commitment to fairness, not just a box-ticking exercise.

Reassurance and realism

A key part of our internal planning has been developing clear client communications that separate:

• What to do now — such as reviewing those who are engaged on zero or low hour contracts.
• Review zero hours policies and systems for transparency and record keeping.
• What to watch for — the likely areas of change once the regulations are confirmed.

Because, at its heart, our work is not just about compliance. It is about reducing uncertainty, calming fears and helping organisations manage change in a way that supports both their people and their performance.

The message to clients is consistent: you don’t need to make sweeping changes overnight. The goal is preparation, not panic.

By understanding what’s coming and reviewing policies gradually, employers can stay compliant and maintain the flexibility they need to run their business effectively.

It’s also important to remember that not every zero hours contract will be affected in the same way. For some roles, especially those that are genuinely casual in nature, the current structure may continue to make perfect sense. The key is to be clear and consistent in how you offer hours and manage scheduling, ensuring decisions are fair and documented.

Turning change into opportunity

While the idea of “guaranteed hours” may sound restrictive at first, it also offers an opportunity to strengthen trust and loyalty among your team.

When employees feel secure enough to plan their lives, even within a flexible arrangement, they are often more engaged, more reliable and more invested in your success.

That is why I am encouraging clients to view these reforms as part of a bigger picture: a chance to review how flexibility and fairness coexist in their business. Done well, it can be a real differentiator in recruitment and retention.

I am also supporting managers to have honest, value-based conversations about what flexibility means, how to set boundaries and how to handle difficult discussions with empathy.

Because ultimately, legislation is only one piece of the puzzle. Building better workplaces comes down to communication, trust and shared understanding.

Planning for success

I often remind clients that legislative change doesn’t have to be daunting. With the right guidance, it can be a catalyst for improvement.

These reforms are no different. With careful preparation, clear communication and a people first mindset, they can strengthen your workplace.

Because stronger rights, handled with care, don’t have to mean more red tape. They can mean stronger relationships, higher trust and workplaces where both employers and employees feel they’re on the same side.