The government’s consultation on guaranteed hours, shift notice and cancellation payments closes on 25 August 2026 at 11:59 pm. If your agency places workers on zero-hours, low-hours or other variable-hours arrangements, this consultation is directly relevant to how you operate.
The proposals sit within the Employment Rights Act 2025 and are part of the government’s Make Work Pay agenda. They are aimed at tackling what ministers describe as “one-sided flexibility” by giving workers greater predictability over hours and more notice when shifts change. The new framework is expected to come into force in 2027.
What the consultation covers
The consultation focuses on three connected rights for workers on zero-hours and similar contracts.
- A right to be offered guaranteed hours after a reference period.
- A right to reasonable notice of shifts and any changes to them.
- A right to compensation when a shift is cancelled, moved or cut short at short notice.
Taken together, these proposals would significantly change how variable-hours work is managed. For recruitment agencies, the administrative impact could be significant, even where the main legal duty sits with the end-hirer rather than the agency itself.
Guaranteed hours
The main idea behind guaranteed hours is that workers who regularly work a certain pattern should not be left on insecure contracts if their working hours are, in practice, consistent. Under the proposals, qualifying workers would be offered a contract that reflects the hours they have actually been working during a reference period.
The government’s preferred reference period is 12 weeks. That means hours worked over that period would be reviewed to see whether a guaranteed-hours offer should be made.
The consultation is also asking for views on the qualifying threshold. In other words, not every worker will necessarily be covered, and the final rules will decide exactly where the line is drawn.
If a worker is eligible, the employer would be expected to make the offer in writing. The worker would not have to accept it and could stay on their current arrangement if they prefer the flexibility.
Shift notice and cancellations
The consultation also covers how much notice workers should receive about their shifts. The aim is to make shift patterns more predictable and to reduce last-minute changes that can leave workers out of pocket or unable to plan ahead.
It also proposes compensation where a shift is cancelled, moved or shortened at short notice. The exact payment structure is still being consulted on, so this should be presented as a proposed framework rather than a final rule.
At this stage, the most accurate way to describe the position is that the government is seeking views on what counts as short notice, how payments should work, and how these rights should be enforced.
What should agencies do?
Recruitment agencies should not wait for the final regulations before starting to prepare. Even if the end-hirer carries the main duty to offer guaranteed hours, agencies will still need strong processes to support compliance.
A sensible starting point is to review how you track hours across assignments. If your records only show weekly timesheets and do not build a cumulative picture, you may need to update your systems.
You should also review contract wording, client agreements and internal processes. That includes checking who will supply hours data, how offers will be recorded, how worker responses will be tracked and how any costs or liabilities will be handled if a placement ends early.
Points to review now
Agencies should pay particular attention to:
- Which placements are on variable, low-hours or zero-hours terms.
- Which workers are likely to work regular patterns over time.
- Whether your systems can track hours over a 12-week period.
- Whether your contracts with clients deal with guaranteed-hours obligations.
- How you will keep records of offers, acceptance or rejection, and shift changes.
This is especially important for longer-term placements. Short-term or genuinely temporary work may sit outside the final rules, but the detail has not yet been fully settled, so this should be treated carefully rather than assumed.
Why agencies should respond
This consultation is the formal chance to influence how the rules are shaped. The government is specifically asking for views on thresholds, notice periods, payment levels and exemptions, all of which are highly relevant to the recruitment sector.
If agencies do not respond, the final version may not reflect the practical realities of temporary labour, shift work and client-managed placements. That is why this is worth engaging with now, not later.
Timeline and next steps
The consultation closes on 25 August 2026 at 11:59 pm, and the government expects the new framework to be implemented in 2027. That may sound distant, but preparation work will take time, especially if systems, contracts and client processes need to change.
A practical first step is to audit your current variable-hours placements, identify the contracts most likely to be affected and check whether your records are detailed enough to support future compliance. From there, you can decide which policies, contracts and systems need updating before the final rules arrive.
How SmartWork Can Help
These proposals will affect how agencies manage contractor arrangements, particularly where workers are on variable or low-hours contracts. Understanding the practical implications early gives you a clear advantage.
Our team is tracking the consultation closely and monitoring developments as the government moves towards final regulations. If you want to discuss what the guaranteed hours proposals mean for your agency’s operations, contact your SmartWork client manager. We can help you think through the implications and prepare for what comes next.
We will continue to provide updates as the consultation response and final regulations are published. Please remember to follow us on LinkedIn, Facebook, and Twitter if you’d like to see new articles and industry updates from us.
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