Zero Hours Contract Policy UK: Employer Guide 2026

What this document is

A Zero Hours Contract Policy is an internal document that explains how your zero hours arrangements operate in practice. It is not the contract itself, it is the rulebook that surrounds it. The contract creates the legal relationship, and the policy translates that into procedures everyone can follow.

The arrangement is built on a simple premise: the employer does not guarantee any minimum hours, and in return the worker is generally free to accept or decline the work that is offered. Because that flexibility runs both ways, things can get messy quickly without clear ground rules.

A good policy spells out how and when work will be offered, how much notice the worker can expect, what the process is for turning down a shift, and what happens if a shift is accepted and then missed. It also addresses the statutory protections zero hours staff are entitled to, including the right to work for other employers, holiday pay calculated on hours actually worked, and the national minimum or living wage for all time on duty. Used properly, the policy keeps expectations aligned and gives managers a consistent framework to rely on.

How to use this document

1. Decide whether zero hours is genuinely the right model. Before writing a policy, work out whether the business actually needs this level of flexibility or whether part time or annualised hours would serve better. Zero hours suits genuinely unpredictable demand, it is less appropriate where a worker reliably does similar hours week after week, because that pattern can create implied entitlements over time. 2. Set out how work will be offered and accepted. The policy should describe exactly how shifts are communicated, whether by text, app, phone call, or rota software, and how much notice workers can typically expect. Make clear that workers can refuse offered work without penalty, but that once a shift is accepted they are expected to turn up and complete it as agreed. 3. Address exclusivity and outside work. Clauses that stop zero hours workers taking jobs with other employers are unenforceable under UK law, and the policy must reflect that. State plainly that workers are free to accept work elsewhere, and consider how you will handle situations where a worker's other commitments affect their availability for your shifts. 4. Cover pay, holiday, and statutory rights. Spell out the hourly rate, any enhancements for weekends or unsocial hours, and how pay is calculated and processed. Explain how holiday entitlement builds up based on hours worked, how it is requested, and how holiday pay is calculated. Confirm that rest breaks, minimum wage, and anti discrimination protections all apply in full. 5. Plan for performance, conduct, and ending the arrangement. Even without guaranteed hours, you still need fair procedures for dealing with poor performance, misconduct, and grievances. Describe how concerns will be raised and handled, and explain how either party can end the arrangement. Avoid simply ghosting workers by cutting off shifts, which can give rise to claims depending on how the relationship has operated in practice.

Common questions