UK businesses that rely on agency workers, especially those on zero-hours contracts, must start preparing for a major shift in employment law. Under new measures introduced in the government’s Employment Rights Bill, agency workers will soon be entitled to greater job security, improved working conditions, and more predictable scheduling.
The changes are part of a broader move to reduce what the government calls “one-sided flexibility,” which has long affected zero-hours and low-hours contract workers. Employers will be required to give clearer information on terms of engagement, including guaranteed hours. There will also be rules requiring reasonable notice of shifts and compensation when work is cancelled or altered at short notice.
The new legislation aligns the rights of agency workers more closely with those of directly employed staff, including protections against unfair dismissal. This means businesses can no longer use agency workers as a workaround to avoid compliance with fair work practices expected under these reforms.
The Employment Rights Bill is expected to pass into law by summer 2025. Implementation will be phased, with some provisions taking effect in autumn 2025 and the rest following in 2026.
Employers, particularly small to medium-sized enterprises (SMEs) or those without in-house HR teams—are being urged to review their employment contracts, policies, and staffing strategies now. Failure to comply could expose businesses to legal and financial risks once the new rules take effect.
