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Zero-hours reform: Key implications for education providers

Radical reform of the rules around zero-hours contracts has been part of the Employment Rights Bill, now enacted as the Employment Rights Act 2025 (‘ERA 2025’), from the outset. The first draft of the proposed Regulations was notably complex and lengthy, and has been expanded since initial publication to cover all “qualifying workers”, whether agency workers or “directly engaged workers”.  The changes will not only be limited to zero-hours arrangements but will also apply to “low-hours contracts”.

We do not yet have the details of how all the new rules will work, but the key issues we are expecting to be covered are as follows:

Guaranteed hours and education staffing

The headline provision of the new rules is the duty to offer “guaranteed hours” and is likely to be particularly relevant for education providers that rely on flexible staffing to manage term-time demand, absence cover, exam periods, extracurricular activities, residential provision and holiday programmes. In short, from a date TBC in 2027, education providers will be required to make a “guaranteed hours” offer to “qualifying workers” (see below).

This will involve looking back at the amount of work done by the worker over a certain “reference period” and offering a contract that reflects those hours on an ongoing basis. The general principle is that if a worker has worked, on average, 15 hours per week across the reference period, then, subject to the detail of the Regulations, they must be offered a contract guaranteeing 15 hours per week going forward. Note that a worker does not have to accept the offer and can remain on their existing terms.

For the purposes of calculating guaranteed hours, the reference period will be key. The government has suggested a 12-week reference period, but the recently closed government consultation also included the possible option of 52 weeks.

Once the offer is made and accepted, the worker will work under a contract that guarantees those hours. However, that is not the end of the story. If the worker is still a qualifying worker, then at the end of the next reference period the exercise needs to be repeated, and the worker must be offered a contract with guaranteed hours based on the latest reference period. Questions as to whether there will be a gap between reference periods, or whether subsequent reference periods will be the same length as the first one, remain open in the consultation.

The heaviest burden in relation to guaranteed hours is likely to fall upon education employers with significant variation in staffing needs across terms, holidays, exam periods and extracurricular activities. The consultation asks whether certain categories of workers or agency arrangements should fall outside the new framework. The hope is for a pragmatic approach so that education providers retain the flexibility needed to manage staff sickness and operational demands without creating unsustainable staffing commitments outside periods of genuine need.

Who is a qualifying worker?

There are expected to be some exceptions, but essentially a worker will be a ‘qualifying worker’ (or ‘qualifying agency worker’) if:

  • during the reference period, they have worked either under a zero-hours contract or a low hours contract; or
  • they have a number of hours guaranteed in their contract that is below or equivalent to an ‘hours threshold’ and they have worked in excess of those hours.

The threshold for how many hours a worker needs to work to cease being a qualifying worker, and/or no longer on a low-hours contract, has not yet been set, and forms part of the consultation. The government is looking to set the threshold anywhere between 8 and 48 hours, but has indicated that somewhere between 8 and 20 hours per week is their preference. For agency workers, the consultation also considers whether the threshold should relate to all work done for the agency, or for an individual end user hirer.

Reasonable notice of shifts

In addition to the provisions in relation to guaranteed hours, the consultation also covers the notice that must be given when shifts are cancelled. Regulations will be introduced under the ERA 2025 to provide that, where a worker’s shift is cancelled at short notice they will be entitled to a compensation payment.

Specific points covered by the consultation include:

  • How much or little notice should qualify as ‘short notice’?
  • Should there be a further category of ‘very short notice’, for which the compensation would be higher?
  • How much should the compensation be, and how should it be calculated?
  • Should there be any exemptions?

It is possible that breaches in relation to short notice payments will be dealt with by the newly introduced Fair Work Agency, to keep these sorts of claims out of an already overburdened tribunal system.

Looking ahead

Ultimately, the debate is no longer confined to whether workers should receive greater predictability, but how proposals can be delivered without undermining the flexibility education providers need to respond to fluctuating demands, inherent in this sector.   The detail of the final framework will therefore be critical in determining whether that balance can be successfully achieved.

The consultation closed on 25 August 2026, and the government should provide a response before bringing in the new Regulations. Although implementation is likely to be phased and subject to further consultation, education employers should not wait until Regulations are finalised to review areas of vulnerability in their staffing models, including casual staff pools, supply and agency arrangements, term-time-only roles, examination support, residential staffing and holiday-period work.

Education providers should also keep developments relating to the School Support Staff Negotiating Body (‘SSSNB’) under review. The SSSNB is expected to become a statutory collective bargaining body for school support staff in state-funded schools in England, with a remit covering pay, terms and conditions, training and career progression.

The body is expected to focus on support staff, including roles such as teaching assistants, office staff, caretakers, technicians, catering staff and cleaners. Some of these roles may be characterised by low-hours or zero-hours contractual arrangements, which could be relevant to the SSSNB regarding issues around pay and job security.

Current indications suggest that the SSSNB is likely to start making pay-related recommendations in the 2027–28 academic year. As the SSSNB develops, education providers should therefore assess whether they are aligned with both the zero-hours reforms and any future SSSNB recommendations.

How can Greenwoods help?

Our experienced employment law team would be pleased to provide further advice and support to help education-sector organisations prepare for the forthcoming changes. Please feel free to get in touch, and we can advise on a suitable way forward for your institution.

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This update is for general purposes and guidance only and does not constitute legal or professional advice. You should seek legal advice before relying on its content. Greenwoods Legal Services Limited is a Limited company, registered in England, registered number 16115882. Our registered office is Queens House, 55-56 Lincoln’s Inn Fields, London, WC2A 3LJ. Authorised and regulated by the Solicitors Regulation Authority, SRA number 8011813. Details of the Solicitors’ Codes of Conduct can be found at www.sra.org.uk. All instructions accepted by Greenwoods Legal Services Limited are subject to our current Terms of Business. VAT Reg No: 502 6933 06




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