Zero-Hours Contracts in UK Hospitality 2026: New Rules, Free Template Structure & What Pubs, Restaurants & Hotels Must Change Now
No, zero-hours contracts have not been banned. But almost every existing template is now legally out of date. This is the complete 2026 guide for UK hospitality – what changed on 6 April 2026, what is coming in 2027, what your contract must contain today, and the template you can download in two clicks.
Zero-hours contracts have NOT been banned in the UK. The Employment Rights Act 2025 became law on 18 December 2025. The April 2026 wave changed three things that directly affect zero-hours workers: Statutory Sick Pay is now payable from day one regardless of weekly earnings (the Lower Earnings Limit was abolished), paternity and unpaid parental leave became day-one rights, and right-to-work checks now extend to all workers, including zero-hours staff. The biggest zero-hours changes – a duty to offer guaranteed hours after a reference period (expected to be 12 weeks), reasonable notice of shifts, and compensation for cancelled shifts – are coming in 2027 with detailed consultation through 2026. Hospitality businesses should rewrite their zero-hours contract template now to be 2026-compliant, prepare for the 2027 "guaranteed hours" duty, and use a hospitality-specific template that handles tronc, split shifts, fitness to work, uniform and right-to-work for casuals. WINC HR's Doc Shop and Hospitality HR Plus Kit both include the 2026-aligned hospitality zero-hours contract.
Are zero-hours contracts being banned in the UK?
No. This is the single most common search query operators are typing into Google in 2026, and the short answer is no. The Employment Rights Act 2025 does not ban zero-hours contracts. It regulates them.
What the Act does is end "one-sided flexibility" – the situation where workers carry all the risk of unpredictable hours and the employer carries none. The mechanism it uses is a set of new rights for the worker: a right to be offered guaranteed hours after a reference period that reflect the hours they actually worked, a right to reasonable notice of shifts, and compensation if shifts are cancelled or changed at short notice.
Critically, the worker can refuse the offer of guaranteed hours and stay on a zero-hours basis. So the contract type survives. What dies is the version of it that allowed an employer to keep someone on "zero hours" for two years while consistently giving them 35 hours a week with no commitment.
What "not banned" actually means for hospitality
You can still use zero-hours contracts for the legitimate flexibility cases hospitality genuinely needs – wedding peaks, summer events, exam-term student staff, the bank-holiday wave. What you cannot do, from 2027, is run a permanent rota off a zero-hours contract while pretending it is casual. The April 2026 changes (day-one SSP, expanded right-to-work checks) already make this approach far more expensive than most operators have realised.
What changed for zero-hours hospitality workers on 6 April 2026
Three changes hit on the same day. Each one disproportionately affects hospitality because our sector employs more zero-hours workers than any other UK sector.
1. Day-one Statutory Sick Pay (the big one)
This is the change with the highest immediate cost. Before 6 April 2026, anyone earning under £125 per week was excluded from SSP because of the Lower Earnings Limit, which captured most casual hospitality staff. The Lower Earnings Limit has now been abolished. SSP is also payable from day one of absence; the old three "waiting days" are gone. The weekly rate is £123.25.
Roughly 1.3 million UK workers gained SSP for the first time on 6 April 2026, and a disproportionate share work in hospitality. A part-time café worker who used to receive £0 in sick pay for a three-day absence now receives roughly £74 (3 days at £123.25 ÷ 5). Multiply across a winter flu wave, and the operational cost is meaningful.
2. Day-one paternity and unpaid parental leave
The qualifying service period for paternity leave (previously 26 weeks) and unpaid parental leave (previously one year) has been removed. Both are now day-one entitlements. Casual hospitality staff with a child are now eligible from their first shift.
3. Right-to-work checks for all workers
Under the Border Security, Asylum and Immigration Act, the right-to-work checking obligation now extends to all workers – not just employees. That means zero-hours workers, casuals, agency staff and any sub-contractor you book require a documented check before they start. The maximum civil penalty for employing an illegal worker is now £60,000 per worker. For high-churn hospitality operations using temp agencies, this is a major operational shift.
4. Fair Work Agency oversight
The Fair Work Agency launched on 7 April 2026. It can enter your premises, demand records (including holiday records, now subject to a six-year retention obligation), and issue Notices of Underpayment with a 28-day pay window. The FWA has named hospitality, retail and care as priority sectors. Zero-hours-heavy operators are explicitly in scope.
What is coming in 2027 – the right to guaranteed hours
The biggest changes to zero-hours contracts in the Employment Rights Act 2025 are scheduled for 2027, with detailed consultation through 2026. Hospitality operators should be preparing the operational systems now – the contract template change is the easy part.
The duty to offer guaranteed hours
At the end of every reference period (expected to be 12 weeks), an employer will be obliged to offer a qualifying worker a guaranteed-hours contract that reflects the hours they actually worked during that period. The worker can accept or refuse. If they accept, they move onto the guaranteed-hours contract. If they refuse, they remain on zero-hours – and the cycle restarts at the end of the next reference period.
Reasonable notice of shifts
Employers will be required to give reasonable notice when scheduling, moving or cancelling shifts. The detail – including what "reasonable" means in practice – is the subject of regulations expected to be consulted on through 2026.
Compensation for changed or cancelled shifts
Where shifts are cancelled or changed at short notice (again, exact threshold tba), the worker is entitled to compensation. This is the provision that ends the "called off two hours before service" practice that has long defined the worst of hospitality casual work.
Protection from detriment
Workers exercising any of the above rights will be protected from detriment or dismissal. Employers found to have retaliated will face uncapped tribunal awards.
Get ahead of 2027 in 2026
Operators who rebuild their casual-worker model now – using the reference-period concept, capturing average hours by worker, and writing the new shift-notice and cancellation logic into the contract – will absorb the 2027 changes invisibly. Operators who wait will be redesigning their staffing model in the same quarter as the new regulations.
Are zero-hours contracts still right for your hospitality business?
The honest answer in 2026: for some roles yes, for others no. The cost of casual labour has risen with the day-one SSP changes, and the 2027 guaranteed-hours duty makes permanent zero-hours rotas operationally clumsy. Below is the WINC HR rule of thumb.
| Use case | 2026 verdict | Better alternative |
|---|---|---|
| Genuine peak cover – weddings, Christmas, summer festivals | ✅ Still fit for purpose | Keep zero-hours, use 2026 template |
| Student and part-time staff with genuinely variable availability | ✅ Still fit for purpose | Keep zero-hours, anticipate 2027 |
| Bank staff used 1-2 shifts per month | ✅ Still fit for purpose | Zero-hours, low compliance overhead |
| Regular front-of-house team doing 25+ hrs every week | ⚠️ High risk | Move to part-time contract now |
| Kitchen porters working a fixed pattern of shifts | ⚠️ High risk | Fixed-hours contract or annual hours model |
| Salaried-equivalent worker on a zero-hours wrapper | 🚫 Stop now | Migrate to a proper employment contract |
Get The 2026-Aligned Hospitality Zero-Hours Contract
The WINC HR hospitality zero-hours contract is available as a one-off purchase from the Doc Shop, or bundled inside the HR Confidence Kits with every other casual-worker policy you need (SSP, harassment, right-to-work, tronc, fitness-to-work). Written by Karl Wood, a 30-year hospitality HR director.
Browse the WINC HR Doc ShopWhat a 2026-compliant hospitality zero-hours contract must contain
These are the structural elements that separate a 2026-compliant contract from a 2024 template that will quietly fail at tribunal. Each one needs to be explicit in writing – verbal practice is not enough.
| Contract element | What it must say in 2026 |
|---|---|
| Clear worker status | Explicit statement that the individual is a worker (not employee), with the implications for rights spelled out. Avoid using employee-only language elsewhere in the contract. |
| No mutuality of obligation | Plain English statement that you are not obliged to offer work and the worker is not obliged to accept any offered shift. This is the legal heart of the zero-hours model. |
| No exclusivity clause | Exclusivity clauses preventing the worker from working elsewhere have been unenforceable since 2015. The contract should explicitly say work elsewhere is permitted (subject to fitness to work and conflict-of-interest provisions). |
| Pay and pay frequency | Clear hourly rate (always at or above National Minimum / Living Wage), pay reference period, and how payslips are delivered. |
| Tronc and tips treatment | Mandatory under the Employment (Allocation of Tips) Act 2023. Must explain how tips are allocated, distributed and reviewed. 100% to workers, no employer deduction. |
| Statutory Sick Pay – updated | Reflects the post-6-April-2026 rules: SSP from day one of absence, no Lower Earnings Limit, weekly rate £123.25 (rising). |
| Holiday – 12.07% accrual | Standard for irregular-hours workers. Reflect the new 6-year holiday record-keeping obligation from April 2026. |
| Right-to-work statement | Reflects the 2026 extension of right-to-work checks to all workers. Confirms the worker has produced acceptable evidence and is permitted to work in the UK. |
| Working time and rest | Reference to the Working Time Regulations 1998 – 48-hour weekly limit (with opt-out option), 11-hour daily rest period, 24-hour weekly rest period. |
| Fitness to work and alcohol | Critical for any licensed premises. Explicit rules around alcohol, drugs and reporting for shifts fit to work. |
| Uniform and deductions | Any wage deduction (for uniform, breakages, training costs) needs explicit prior written authorisation in the contract. |
| Conduct, discipline and grievance | Cross-reference to your full disciplinary and grievance procedure (which must comply with the ACAS Code). |
| Confidentiality and data protection | Customer data, reservation systems, CCTV awareness. |
| Notice and ending the engagement | How either party can end the arrangement. Workers do not have unfair dismissal protection until they have two years' continuous service, but they do have day-one protection from discrimination and automatic unfair dismissal grounds. |
| Preparation for 2027 guaranteed-hours rights | A short clause acknowledging the upcoming statutory right to be offered guaranteed hours – signals you are aware and preparing. |
Pre-2026 vs. Post-April 2026 – the side-by-side
If your current template was written before April 2026, every row below is either wrong or absent. This is the single most useful internal audit a hospitality operator can run on their casual workforce paperwork.
| Topic | Pre-6 April 2026 | From 6 April 2026 |
|---|---|---|
| SSP eligibility | Lower Earnings Limit excluded under-£125-pw workers | Every worker qualifies, no LEL |
| SSP waiting days | 3 unpaid waiting days | SSP payable from day one |
| Weekly SSP rate | £118.75 | £123.25 |
| Paternity leave qualifying service | 26 weeks | Day-one right |
| Unpaid parental leave qualifying service | 12 months | Day-one right |
| Right-to-work checks | Employees only | All workers (incl. casuals, contractors, agency) |
| Right-to-work civil penalty | £20,000 max per worker | £60,000 max per worker |
| Holiday record-keeping | Two years (general WTR practice) | Six years, enforced by FWA |
| Tipping policy & consultation | In force since 1 Oct 2024 | Now under FWA enforcement |
| Sexual harassment positive duty | In force since 26 Oct 2024 | Tribunals applying 25% uplift |
| Right to offer of guaranteed hours | N/A | Expected 2027 (consultation 2026) |
How to migrate your existing zero-hours hospitality team in 30 days
A practical plan that fits between two services. Built for a venue with anywhere from 5 to 50 casual staff.
Days 1-3: Audit. List every zero-hours worker on your books. For each, capture: start date, average weekly hours over the last 12 weeks, fixed shifts (yes/no), other employment (yes/no), and right-to-work check status under the new rules.
Days 4-7: Classify. Use the use-case table earlier in this guide. Mark each worker: keep on zero-hours, move to part-time, or move to a fixed-hours contract. Anyone averaging 25+ hours/week on a regular pattern is a 2027 problem you should fix now.
Days 8-14: Rewrite the template. Replace every pre-2026 SSP, paternity, right-to-work and tronc clause. Use either an updated hospitality template (such as the WINC HR Doc Shop zero-hours contract) or rewrite using the checklist above as your guide.
Days 15-21: Re-issue contracts. Every worker classed as "keep on zero-hours" gets the new template. Workers reclassified to part-time or fixed-hours get a new contract reflecting their new status. Each must sign and date a receipt.
Days 22-25: Update payroll. Day-one SSP and the abolished LEL change how your payroll system calculates absence pay. Brief your payroll provider or finance lead this week, not next month.
Days 26-28: Train your managers. Duty managers, GMs and rota-owners need to understand the new shift-cancellation expectations, the 6-year holiday record retention, and the right-to-work check scope. A 60-minute briefing is enough if it covers all three.
Days 29-30: Diary the 2027 prep. Block out Q3 2026 to consult on the upcoming guaranteed-hours regulations, build your 12-week reference-period tracking, and stress-test your rota system against shift-notice and cancellation-compensation rules.
Stop using your 2024 zero-hours template
Get the 2026-aligned hospitality zero-hours contract as a one-off purchase from the WINC HR Doc Shop, or get it bundled with every other casual-worker policy you need inside the WINC HR HR Confidence Kits. Both options are written by Karl Wood (30 years hospitality HR), fully aligned with the Employment Rights Act 2025 and updated whenever the law moves.
Visit the WINC HR Doc ShopFrequently asked questions
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No. The Employment Rights Act 2025 regulates zero-hours contracts; it does not ban them. From 2027 (expected), qualifying workers will be entitled to be offered a guaranteed-hours contract at the end of each reference period. They can accept or refuse. If they refuse, the zero-hours arrangement continues.
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Three big things. (1) Statutory Sick Pay is now payable from day one and the Lower Earnings Limit has been abolished, so every zero-hours worker qualifies. (2) Paternity and unpaid parental leave became day-one rights. (3) Right-to-work checks now extend to all workers including casuals, with the maximum civil penalty raised to £60,000 per illegal worker. The Fair Work Agency also launched on 7 April 2026 with hospitality as a named priority sector.
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Yes. The Employment Rights Act 1996 (as amended) requires you to give every employee and worker a written statement of particulars on day one. A zero-hours worker is still a worker. The statement must include pay, hours, holiday, sickness, pension and notice arrangements among other things.
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No. Exclusivity clauses preventing zero-hours workers from working for other employers have been unenforceable since the Exclusivity Terms in Zero Hours Contracts (Redress) Regulations 2015. A 2026-compliant template should explicitly state that the worker is free to work elsewhere, subject to fitness to work and confidentiality.
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£123.25 per week from 6 April 2026, payable from day one of absence. There is no longer a Lower Earnings Limit, so any zero-hours worker who is unfit for work qualifies regardless of how few hours they had worked in the previous weeks.
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The duty (under the Employment Rights Act 2025) requires employers to offer a qualifying worker a guaranteed-hours contract at the end of every reference period (anticipated to be 12 weeks) that reflects the hours they actually worked during that period. The worker can accept or refuse. Implementation is expected in 2027, with consultation on the detailed regulations running through 2026.
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Yes. A new six-year holiday record-keeping obligation came into force on 6 April 2026 under the Employment Rights Act 2025 and is enforceable by the Fair Work Agency. For zero-hours workers using the 12.07% accrual method on irregular hours, this is a significant uplift in record-keeping discipline.
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In 2026, yes – the law does not yet impose a compensation duty. But the Employment Rights Act 2025 will require reasonable notice of shifts and compensation for cancelled or changed shifts from 2027 (expected). Many operators are already adopting voluntary notice and cancellation standards in 2026 to prepare for the regulation and as a recruitment and retention advantage.
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WINC HR's Doc Shop sells the hospitality zero-hours contract as a one-off purchase. The WINC HR Hospitality HR Plus Kit (£59/month or £649/year) includes the contract bundled with every other casual-worker policy – SSP, tronc, harassment, right-to-work, fitness to work, uniform, working time. Both are written by Karl Wood, updated for every UK employment law change.
Are agency staff in a hospitality kitchen covered by these new rules?
Yes for most of them. The April 2026 SSP changes and right-to-work expansion apply to all workers, including agency staff. The 2027 guaranteed-hours duty is also expected to extend to qualifying agency workers – the Government has explicitly confirmed agency workers are within scope. Operators using temp agencies in 2026 should pre-emptively check the agency's compliance posture and update commercial terms.
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Yes for most of them. The April 2026 SSP changes and right-to-work expansion apply to all workers, including agency staff. The 2027 guaranteed-hours duty is also expected to extend to qualifying agency workers – the Government has explicitly confirmed agency workers are within scope. Operators using temp agencies in 2026 should pre-emptively check the agency's compliance posture and update commercial terms.
Don't get caught with a 2024 contract in a 2026 inspection
Hospitality is in the Fair Work Agency's first wave. Your zero-hours template is the single document most likely to be examined. If it is silent on the new day-one SSP rules, the expanded right-to-work scope, or the post-April 2026 holiday record retention, you are exposed.
Get the 2026 hospitality zero-hours contract – two ways
ONE-OFF: Buy the standalone hospitality zero-hours contract from the WINC HR Doc Shop, instantly downloadable as an editable Word document.
BUNDLED: Get it plus every other casual-worker policy you need inside the Hospitality HR Plus Kit (£59/month or £649/year). Both written by Karl Wood and updated whenever UK employment law moves.
Already running a multi-site or boutique hotel group? The Hospitality HR Complete Kit (£89/month or £979/year) adds talent and succession planning, retention and reward tools, audit templates and crisis-response frameworks on top of everything in this guide.
→ Compare all three Confidence Kits
About the author
Karl Wood is the founder of WINC HR and a 30-year veteran of luxury hospitality HR – including senior people roles inside The Ritz-Carlton, Radisson, Orient Express Hotels, Park Plaza and Regent Seven Seas Cruises. He writes the WINC Wire and is the author of If Bears Did Leadership.
Disclaimer: This guide is for general information for UK hospitality employers (England and Wales). It is not legal advice. Employment law is context-specific. WINC HR recommends taking independent legal advice before applying any policy to a live employee relations matter. Implementation dates for the Employment Rights Act 2025 provisions described as "expected" or "anticipated" are subject to government consultation and regulation through 2026
