Zero Hours Contracts Hospitality 2027: New UK Law Explained

From January 2027, UK employers must offer guaranteed-hours contracts to workers who regularly do set hours over a 12-week reference period. This hits hospitality hardest, where 32% of workers are on zero-hours contracts compared to just 3% across all UK industries.

The new rules under the Employment Rights Act will force thousands of pubs, restaurants and hotels to rethink how they schedule staff. You can't just put someone on a zero-hours contract and roster them for 25 hours every week indefinitely. If they work regular hours, they get the right to request a contract that reflects those hours.

This guide covers what the law actually means for your day-to-day operations, how to track the 12-week reference periods, and practical steps you can take in 2026 to prepare.

What the 2027 Zero Hours Contract Rules Mean for Hospitality

The core change is simple: if someone on a zero-hours contract works a regular pattern of hours over 12 consecutive weeks, they can request a guaranteed-hours contract that reflects those hours. You then have one month to respond, and if you refuse, you need legitimate business reasons.

This builds on earlier changes outlined in the Employment Rights Act that hospitality businesses need to understand. The government's rationale is straightforward: if you're consistently rostering someone for set hours, why shouldn't their contract reflect that reality?

For hospitality, this creates immediate practical challenges. Your head chef might be on a zero-hours contract but work 40 hours every week across five shifts. Under the new rules, they'd have grounds to request a 40-hour guaranteed contract. Your weekend bar staff who work every Friday and Saturday night would qualify for guaranteed weekend hours.

The definition of "regular hours" isn't rigid. The law looks at patterns over the 12-week period. Working 20 hours one week and 30 the next doesn't disqualify someone if there's an overall pattern. What matters is whether there's a recognisable schedule that repeats.

Crucially, this doesn't ban zero-hours contracts entirely. They'll still work for genuinely irregular coverage, like holiday cover, event staff, or seasonal workers who don't establish regular patterns. But if you're using them for core, ongoing roles with predictable hours, that practice will need to change.

How to Track the 12-Week Reference Period

The 12-week reference period is rolling, not fixed. This means every week could potentially be the start of a new 12-week period that qualifies someone for guaranteed hours. You'll need systems to track this automatically rather than trying to monitor it manually.

The law specifies that you look at the hours worked, not the hours offered. If you roster someone for 25 hours but they only work 20 because of illness, it's the 20 that counts towards their average. Similarly, if they pick up extra shifts, those additional hours contribute to their pattern.

You'll need to track several data points for each zero-hours worker: actual hours worked each week, the pattern of when they work (same days, similar start times), and whether there are gaps in the 12-week period due to holidays or absence. The employment law changes coming in April 2026 include enhanced record-keeping requirements that will help with this tracking.

Most hospitality businesses will need rota software that can automatically flag when someone approaches the 12-week threshold. Trying to track this in spreadsheets across multiple staff members will be unworkable for anything beyond the smallest operations.

Example: Sarah works as a server at a 120-cover restaurant. Over 12 weeks, she works: Week 1: 22 hours (Tue-Thu-Fri-Sat), Week 2: 25 hours (same pattern plus Sunday lunch), Week 3: 18 hours (missed Thursday sick), Week 4-12: averages 23 hours on the same four-day pattern. Despite the variation, there's a clear regular pattern of around 20-24 hours across Tuesday, Thursday, Friday and Saturday. Sarah would qualify to request a guaranteed-hours contract reflecting this pattern.

Redesigning Rotas for Guaranteed Hours Contracts

Moving from zero-hours to guaranteed-hours contracts changes how you build your rotas. Instead of having complete flexibility to schedule anyone anywhere, you'll have core guaranteed hours to schedule first, then fill gaps with remaining zero-hours staff or overtime.

Start by identifying which roles genuinely need guaranteed hours versus which are truly variable. Your head chef, senior servers, and key bar staff probably work regular patterns already. These roles translate naturally to guaranteed-hours contracts. Weekend-only staff, holiday cover, and event workers might stay on zero-hours legitimately.

You'll need to think about guaranteed hours in terms of both total weekly hours and the pattern of when they're worked. Someone guaranteed 25 hours might have the right to expect those hours spread across their usual days, not condensed into three long shifts that don't match their established pattern.

The law allows for some flexibility within guaranteed-hours contracts. You can still vary when those guaranteed hours are worked, provided you give reasonable notice. But you can't just decide to halve someone's hours one week because it's quiet if those hours are guaranteed in their contract.

Consider building hybrid contracts that guarantee a minimum number of hours but allow for additional hours when needed. This gives staff security while preserving some operational flexibility. Someone might have 20 guaranteed hours but regularly work 28 hours when you're busy.

This connects to broader questions about how to structure your weekly rota planning when you have a mix of contract types. You'll need to plan guaranteed hours first, then overlay variable requirements.

Notice Periods and Shift Cancellations

The 2027 changes also introduce new rules about cancelling shifts and notice periods for changes. These apply to both zero-hours and guaranteed-hours contracts but work differently for each.

For zero-hours contracts, you'll need to give reasonable notice before cancelling shifts. What counts as "reasonable" depends on circumstances, but same-day cancellations will generally only be acceptable for genuine emergencies. The law expects you to give notice that allows workers to find alternative arrangements.

For guaranteed-hours contracts, you can't simply cancel guaranteed hours. If someone has a 25-hour contract and you only need 20 hours of work that week, you still owe them 25 hours' pay or need to find alternative work for those five hours. This is the trade-off for giving workers security.

You can still vary when guaranteed hours are worked, but you need to give reasonable notice. Moving someone's usual Wednesday shift to Thursday might be acceptable with a week's notice but not with one day's notice unless they agree.

Many businesses will need to reconsider their approach to last-minute rota changes. The casual "can you not come in tonight, it's quiet" approach that works with zero-hours contracts won't work the same way with guaranteed hours. You'll need better demand forecasting and more structured approaches to managing quiet periods.

This also affects how you handle sickness and absence. With guaranteed-hours contracts, you can't just tell other staff not to come in to cover the absence costs. You'll need strategies for managing guaranteed hours even when demand is lower than expected.

Compensation for Last-Minute Changes

The new law introduces compensation requirements for short-notice changes and cancellations. If you cancel a shift or significantly change it without reasonable notice, you may owe compensation even to zero-hours workers.

For zero-hours workers, if you cancel a shift with less than reasonable notice (likely to be defined as less than 24-48 hours in most cases), you'll owe compensation. This is typically a portion of the shift's value, calculated on a sliding scale based on how short the notice is.

For guaranteed-hours workers, the compensation is clearer: if they have guaranteed hours, they get paid for those hours regardless of whether you have work for them. You can ask them to do alternative tasks or send them home early, but they're entitled to their guaranteed pay.

Same-day cancellations will be the most expensive. Cancelling a 8-hour shift on the morning it's due to start could cost you several hours' worth of wages in compensation, even if the worker doesn't actually work.

This makes demand forecasting much more critical. The cost of getting your rota wrong increases significantly when you have to pay compensation for changes. Many businesses will need to be more conservative in their initial scheduling and accept some overstaffing rather than risk expensive last-minute adjustments.

You'll also need clear policies about what constitutes reasonable notice for different types of changes. Moving a shift by an hour might need less notice than cancelling it entirely. Having written policies protects both you and your staff by setting clear expectations.

Preparing Your Business in 2026

You have roughly 12 months from when this guide is written to prepare for the January 2027 changes. Start by auditing your current zero-hours contracts to identify who would qualify for guaranteed hours if the law applied today.

Review your rota patterns over the last six months. Which zero-hours staff work regular patterns? How many hours do they typically work? When do they typically work? This data will show you who's likely to qualify for guaranteed-hours contracts and what those contracts should look like.

Consider proactively offering guaranteed-hours contracts to staff who would qualify anyway. This shows good faith, helps with retention, and lets you control the timing rather than responding to requests after January 2027.

Invest in rota software that can track 12-week rolling periods automatically. Manual tracking will be unworkable for businesses with more than a handful of zero-hours staff. You need systems that flag approaching thresholds and help you plan transitions.

Review your demand forecasting and rota planning processes. The flexibility to make last-minute changes will be more expensive, so you need better initial planning. This might mean analysing historical data more carefully, improving communication between kitchen and front-of-house about expected covers, or changing how you handle bookings and events.

Train your management team on the new rules. Anyone who creates rotas or manages staff schedules needs to understand the reference periods, notice requirements, and compensation rules. The existing rules about rest periods between shifts already require careful scheduling, and the 2027 changes add another layer of complexity.

Consider your overall staffing strategy. Some businesses might reduce their reliance on zero-hours contracts and move towards more part-time permanent contracts. Others might restructure roles to genuinely separate regular core hours from irregular additional coverage.

Common Questions About Zero Hours Contracts in Hospitality 2027

Can I still use zero-hours contracts after January 2027?

Yes, but only for genuinely irregular work patterns. If someone works regular hours over 12 weeks, they can request guaranteed hours. Zero-hours contracts will still work for holiday cover, event staff, and truly variable roles.

What happens if I refuse a guaranteed-hours request?

You must respond within one month and provide legitimate business reasons if you refuse. Valid reasons might include genuinely irregular demand patterns or the temporary nature of the work. Workers can challenge unreasonable refusals through employment tribunals.

Do guaranteed hours have to match exactly what someone worked?

No, the guaranteed hours should reflect the regular pattern but don't have to be identical to every week worked. If someone averaged 22 hours over 12 weeks with a range of 18-26 hours, a 20-hour guarantee might be reasonable.

Can I still ask guaranteed-hours staff to work extra shifts?

Yes, guaranteed hours are a minimum, not a maximum. You can offer additional shifts above the guaranteed hours, but the worker can refuse them. Only the guaranteed hours are mandatory for both parties.

What notice do I need to give for rota changes?

"Reasonable notice" depends on the change and circumstances. Moving a shift typically needs more notice than changing start times by an hour. Same-day changes should only happen for genuine emergencies and may trigger compensation payments.

How do holidays affect the 12-week reference period?

Periods of holiday or sickness don't count towards the 12 weeks, but they don't reset the clock either. If someone works 8 weeks, takes a week's holiday, then works 4 more weeks in the same pattern, that could still qualify as 12 weeks of regular work.

Can I put new starters straight onto guaranteed-hours contracts?

Yes, there's nothing stopping you offering guaranteed hours from day one. This might help with recruitment and retention, especially for roles where you know you need regular coverage.

What records do I need to keep to track the reference periods?

You'll need detailed records of actual hours worked (not just rostered), when they were worked, and any gaps due to absence. Most businesses will need digital systems to track this automatically rather than relying on manual records.

The zero-hours contract changes coming in January 2027 represent a significant shift for hospitality businesses. While they reduce some flexibility, they also offer opportunities to build more stable teams and reduce recruitment costs. The key is preparing now, in 2026, rather than scrambling to comply when the law takes effect. See how RotaKeep's advanced scheduling features can help you track reference periods automatically and transition smoothly to the new guaranteed-hours requirements.

This is general guidance, not legal advice.