A zero-hours contract (or casual contract) is one under which the employer is not obliged to offer any minimum hours, and the worker is not obliged to accept any hours offered. They are widely used in hospitality, retail and care sectors. Despite the name, workers on zero-hours contracts have significant statutory rights.
You are a "worker" — at minimum
Most people on zero-hours contracts are "workers" for the purposes of the Employment Rights Act 1996. This means you are entitled to: National Minimum Wage (£12.60/hr from April 2026 for those aged 21+); paid annual leave (5.6 weeks pro-rated to hours worked); rest breaks; protection from unlawful deductions from wages; and whistleblowing protections. You do not automatically have the stronger rights of an "employee" — such as the right not to be unfairly dismissed — unless you also satisfy the employee test.
Exclusivity clauses are banned
Under the Small Business, Enterprise and Employment Act 2015, s.153, it is illegal for a zero-hours contract to contain an exclusivity clause — a term that prevents the worker from working for other employers. Any such clause is unenforceable. You can work for multiple employers simultaneously regardless of what your contract says.
Holiday pay on zero-hours contracts
You accrue 5.6 weeks of paid leave per year. Because hours vary, holiday pay should be calculated as an average of your earnings over the previous 52 paid weeks (ignoring weeks where no pay was received). Since April 2020, employers cannot use the old "rolled-up holiday pay" method (adding a percentage to each hourly payment) unless the worker genuinely has no fixed hours. The rules changed further in 2024: check the GOV.UK holiday entitlement guide for current rules.
What changed in 2026
The Employment Rights Act 2025 (in force from 2026) introduced new rights for zero-hours workers: (1) the right to request a guaranteed-hours contract after 26 weeks of regular work; (2) reasonable notice of shifts and reasonable compensation when shifts are cancelled at short notice. Employers who fail to give the new minimum notice before cancelling a shift must pay a compensatory amount set by regulations. ACAS has published a detailed guide to the new rules.
If your employer retaliates
You are protected from detriment for asserting a statutory right — including the new rights above — under the Employment Rights Act 1996, s.47B. If your employer reduces your hours or stops offering work in response to you asserting a right, you may have a claim for unlawful detriment at the Employment Tribunal. Start by raising a grievance; if unresolved, contact ACAS Early Conciliation before issuing a tribunal claim.