“Zero‑Hour Contracts: What Business Owners Must Know After the 6 January Rule Change”
IIf you run a busy nursery, early‑years setting, or small business, flexible staffing often keeps the whole operation moving. You might rely on bank staff, casual team members, or people who can pick up shifts at short notice.
But as of 6 January 2026, UK employment law has shifted - and if you use any form of zero-hour working arrangement, the risks have changed too.
Here’s what you need to know, quickly and without the legal jargon.
1. What Actually Changed on 6 January 2026?
Two key changes under the Employment Rights Act 2025 came into force:
a) The “Predictable Hours” Framework Has Been Repealed
The Workers (Predictable Terms and Conditions) Act 2023 - which gave workers the right to request more stable hours - has now been removed entirely.
If you updated any policies for this, they no longer have legal force and will need reviewing.
b) The Ban on Exclusivity Terms Has Expanded
Previously, employers couldn’t stop zero‑hour contract workers from taking other jobs.
Now, this protection applies to all zero‑hour arrangements - even if the contract isn’t labelled as “zero‑hours.”
This is the major change employers need to understand.
2. Why This Affects More Than Just “Zero‑Hours Contracts”.
The law now focuses on what happens in practice. A zero‑hour arrangement exists if:
No hours are guaranteed
Work is only offered when needed
There is an expectation that workers will accept shifts when called
This can apply to:
Bank staff
Casual workers
Seasonal or ad‑hoc roles
Variable‑hours positions
Rota‑based, short‑notice staffing
Some agencies or platform-style arrangements
For many small businesses, these setups evolve informally - which is exactly why the legal risk now lies in everyday operational decisions, not the wording of the contract.
3. Why Business Owners Need to Be Cautious
a) Workers Must Be Free to Take Other Jobs
You cannot block or discourage workers from taking additional roles. Risky behaviours now include:
Reducing someone’s shifts after they take another job.
Delaying or withholding shift offers
Removing people from the rota
Expecting “priority availability”
Even subtle pressure or assumptions can now be challenged.
b) Day‑to‑Day Management Decisions Are Now the Biggest Risk
For most small businesses, the contract isn’t the issue - the rota is.
A decision that feels practical (e.g., favouring someone who is “more flexible”) may look like discrimination or an exclusivity breach through a legal lens.
c) Changing the Contract Label Won’t Help
Rebranding a role as “flexible hours” or “casual” won’t override the law.
The focus is on reality, not labels.
4. What This Means for Nurseries, Early‑Years Settings, and Small Businesses
If you’re juggling staffing ratios, unpredictable demand, or short notice cover, these rules are particularly relevant.
Sectors highlighted in official guidance include:
Retail
Hospitality
Social care
Logistics
Agency/outsourced staffing
Nurseries and early-years providers often rely heavily on bank staff - which means these changes will impact how most settings manage flexible hours.
5. Practical Steps Business Owners Should Take Now
Here’s a simple checklist you can action straight away:
1. Review Anyone with No Guaranteed Hours
Even without the words “zero-hours,” the arrangement may still legally count.
2. Check Your Contracts and Handbooks
Remove or update:
Exclusivity clauses
Any language that hints at giving your business priority over other jobs
3. Train Your Managers
Most risk now comes from day‑to‑day decisions. Make sure managers understand:
They cannot penalise people for having a second job
Shifts must be allocated fairly and consistently
Availability expectations must be non‑restrictive
4. Update Rota and Shift‑Allocation Processes
Use a transparent, consistent method for:
offering shifts
recording decisions
explaining allocation
5. Prepare for People Taking Second Jobs
This is now protected.
Replace exclusivity expectations with:
conflict‑of‑interest checks
fatigue/safety considerations
safeguarding and confidentiality processes
6. Final Thoughts: Staying Compliant While Staying Flexible
These changes don’t stop you from running a flexible staffing model - they simply require more transparency, consistency, and fairness.
For small organisations where one person manages HR, rotas, and day-to-day operations, this shift may feel like added pressure. But with the right systems in place, you can stay compliant and continue to rely on flexible staffing when you need it.
If you’d like support reviewing contracts, updating policies, or training your team, Pineapple HR is here to help. Get in touch via the contact us page.
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