The Employment Rights Act: what will it really mean for organisations who rely on casual, agency and shift workers

You have probably heard of The Employment Rights Act 2025 and you are probably dimly aware that it is going to have a massive impact on the way you do business. The truth is it promises to have a profound effect on the way organisations with casual and irregular workers do business.

Here we are going to highlight some of the changes in as simple a way as possible to help you plan.

The first thing to say is that even though the Employment Rights Act is now a law, some of the elements of it are still under review.

New rules covering zero-hours contracts, casual staff and agency workers are not expected to come into force until 2027, with the Government currently consulting on exactly how they should operate.

So what might actually change and what is the impact on you?

Workers who regularly work predictable hours on a zero or low-hours contract will get the right to be offered guaranteed hours reflecting the work they have actually been doing.

The current proposal is to assess this over a 12-week period, although important details remain undecided, including exactly what constitutes a "low-hours" contract.

Crucially, agency staff are included. However, it isn't the agency itself that is responsible for guaranteeing the hours. So, if Sarah from Agency X works at Stadium Y for eight hours a week for twelve weeks then it is Stadium Y that would normally have to offer Sarah guaranteed hours reflecting that pattern.

Mind blowing.

Workers will not be forced to accept guaranteed hours. Someone who genuinely wants the flexibility of a zero-hours arrangement should therefore be able to retain it.

There will also be new rights to reasonable notice of shifts and compensation when shifts are cancelled, moved or shortened at short notice. Which may well increase agency prices by a lot as they look to recover these costs in the short term – cash flow is a major issue for these businesses.

One part of the Act is already with us. We all know that with every major event there are staff who don't show up on the day. Large casual workforces, especially those with a high proportion of young people, will inevitably include some unreliable workers who simply won't turn up. All those guys have to do now is claim they are sick and, subject to the statutory sick pay rules, they can receive 80% of their average weekly earnings from day one.

If you are concerned about how these changes could affect your business, now is the time to look at how you use casual and agency staff. Review working patterns, particularly where the same people are regularly working the same shifts, and speak to your staffing provider about how the new rules could affect you.