Contracts & rights14 min read · 23 October 2026 · Updated 28 September 202616 reads

Zero-hours and minimum-hours contracts: your rights

Your rights on a zero-hours or low-hours retail contract: pay, holiday at 12.07%, sick pay from day one, working for others, and what the new law changes.

By UK Retail Jobs editorial team — We write plain-English guides to finding and doing retail work in the UK. Every figure is checked against a named source.

A young shop worker in a plain terracotta fleece holds a basket of stock behind the counter of a small UK convenience store at dusk.

A zero-hours contract means your employer does not have to give you any set hours, and you do not have to take the shifts they offer. A minimum-hours or low-hours contract promises you a small number of hours, often with extra shifts on top. On either type, you still have real legal rights: the minimum wage, paid holiday, rest breaks, payslips, and freedom to work for another employer.

This guide explains those rights in plain English. It covers holiday at 12.07%, sick pay since April 2026, and the new rules on guaranteed hours and cancelled shifts that the Employment Rights Act 2025 will bring in. Every rule below comes from GOV.UK or ACAS, and the full list of sources is at the end, so you can check it for yourself.

What is a zero-hours contract?

A zero-hours contract is a casual agreement. Your employer offers work when they need you, and you can say yes or no. ACAS describes it this way: there is no minimum number of hours, and you do not have to accept work you are offered.

Retail is one of the sectors that uses these contracts most, according to ONS data quoted in a government factsheet. GOV.UK's guidance for employers gives Christmas in shops as an example of when they might be used. If you are looking at seasonal work, our Christmas retail jobs guide covers who hires and when.

Minimum-hours and low-hours contracts

Some retailers offer a contract with a small number of guaranteed hours, such as a few hours a week. You then pick up overtime or extra shifts when the shop is busy. This gives you a floor of pay each week, but your total hours can still change a lot.

Your rights on these contracts still come from your employment status, just as they do on zero hours. You get the same core rights as any other worker. The new guaranteed hours law, covered below, is set to include some low-hours contracts as well as zero-hours ones.

Are you a worker or an employee?

Your rights depend on your employment status, not on the words "zero hours" in your contract. ACAS says someone on a zero-hours contract can be legally classed as either a worker or an employee.

GOV.UK says you are more likely to be a worker if the business does not have to offer you work and you do not have to accept it. Contracts that use words like "casual", "zero hours" or "as required" also point that way. You are more likely to be an employee if you must work regularly and do a minimum number of hours.

RightWorkerEmployee
Minimum wageYesYes
Paid holiday and rest breaksYesYes
PayslipsYesYes
Statutory Sick PaySometimesYes, if you qualify
Notice when the job endsOnly if the contract says soYes
Protection from unfair dismissalNoYes, after the qualifying period
Redundancy payNoYes, if you qualify

If you are not sure which you are, look at how the job works in practice, not just the title of your contract. GOV.UK has an employment status checker, and the ACAS helpline can talk it through with you for free.

What happens when the contract ends?

ACAS says your employer must pay you for any holiday you have built up but not taken, unless you get rolled-up holiday pay. They must also pay any wages you are still owed. If you are an employee and have worked there for more than a month, you are owed notice pay too.

Workers have no legal right to notice, unless the contract gives one. Workers also cannot claim unfair dismissal. At the moment, employees need 2 years' service to make that claim, but GOV.UK says this will drop to 6 months for dismissals from 1 January 2027.

What rights do you have from your first day?

From your first shift you are covered by the minimum wage, holiday, rest breaks and payslip rules. GOV.UK also says employers must give workers a written statement of the main terms on day one.

  • Minimum wage. You must get at least the legal rate for your age for every hour you work. From 1 April 2026 that is £12.71 an hour at 21 and over, £10.85 at 18 to 20, and £8.00 under 18. See our retail pay guide for what shops pay above this.
  • Written statement. On your first day, your employer must tell you in writing your pay, your hours and how they may vary, and your holiday. They must also tell you about sick pay and notice periods.
  • Rest breaks. ACAS says zero-hours staff have the same rights as everyone else to breaks during a shift, rest between shifts, and weekly rest.
  • Fair treatment as a part-timer. GOV.UK says workers must not be treated less favourably because they work part-time.
  • Protection from being punished. ACAS says your employer must not treat you worse because you used a legal right. Cutting your hours without good reason is one example it gives.

How does holiday work on a zero-hours contract?

You build up paid holiday as you work. ACAS says people on irregular hours, which usually includes zero-hours staff, build up holiday at 12.07% of the hours they work in each pay period.

Most workers are entitled to at least 5.6 weeks' paid holiday a year, capped at 28 days, GOV.UK says. Your new holiday is added on the last day of each pay period, whether you are paid weekly or monthly. These rules started on 1 April 2024.

A man in a plain grey t-shirt packs folded clothes into a small suitcase on his bed at home, getting ready for a few days of paid time off.
Every shift you work adds to your paid holiday, so even a few hours a week builds up time off.

A worked example

Say you are paid monthly and work 60 hours in October. 12.07% of 60 hours is 7.24 hours. ACAS says a part hour under 30 minutes is rounded down, so you have built up 7 hours of paid holiday that month.

If you work only 20 hours the next month, you build up about 2 hours. Busy months give you more holiday, and quiet months give you less. The most you can build up in a year on the legal minimum is 28 days.

Rolled-up holiday pay

Some employers pay your holiday as an extra amount on top of each wage packet instead. This is called rolled-up holiday pay. ACAS says it must be at least 12.07% of your pay for that period, paid at the same time, and shown as a separate line on your payslip.

Holiday built up in hoursRolled-up holiday pay
When you get the moneyWhen you take time offWith every wage payment
Pay while on holidayYesNo, you were already paid
What your payslip showsYour normal payYour pay plus a separate holiday line
Example on £800 of payHoliday hours to take laterAt least £96.56 extra

With rolled-up pay, you get nothing when you actually take a week off. So it helps to set some of it aside. Our guide to part-time retail jobs for students has tips on managing uneven pay.

Since 6 April 2026, ACAS says employers must keep records of your holiday and holiday pay for at least 6 years. If the numbers on your payslip look wrong, ask your manager to show you the record.

Can your employer stop you working somewhere else?

No. If you are on a zero-hours contract, the law says your employer cannot stop you taking work from another employer. This is often called the exclusivity ban.

ACAS says the Employment Rights Act 1996 means your employer must not:

  • Put a clause in your contract that tries to stop you working for someone else.
  • Treat you unfairly because you also work for another employer.
  • Dismiss you for having a second job.

This still applies if your contract has an exclusivity clause, or if your boss says you broke your contract. GOV.UK says you can simply ignore that kind of clause. GOV.UK says the ban also covers contracts where your earnings are at or below the lower earnings limit, a threshold set by the government.

So you could, for example, work weekdays at one shop and weekends at another. You can search zero-hours and casual retail jobs to find extra work that fits around your main job.

A woman in a plain navy jacket waits at a bus stop on a UK high street in the early evening, heading from one shop job to another.
On a zero-hours contract your employer cannot stop you taking shifts with another employer.

Do you get sick pay on a zero-hours contract?

Often, yes. Since 6 April 2026, Statutory Sick Pay (SSP) is paid from your first full day off sick, and there is no longer a minimum earnings level. GOV.UK says this applies to all eligible employees, whatever they earn.

Before April 2026, you could not get SSP if you earned below the lower earnings limit, which ruled out many people on low or irregular hours. There were also unpaid "waiting days" at the start of a spell of sickness. GOV.UK says both rules were removed on 6 April 2026.

A man wrapped in a blanket on his sofa holds a phone to his ear, calling his manager to say he is too ill to work his shift.
Since April 2026, Statutory Sick Pay starts from your first full day off sick, whatever you earn.

How much you get

GOV.UK says SSP is either £123.25 a week or 80% of your average weekly earnings, whichever is lower. Your employer works out your average over an 8-week period. So if you usually earn £100 a week, your SSP would be about £80 a week.

SSP can last up to 28 weeks. If you have two jobs, GOV.UK says you may get SSP from each one. GOV.UK says you need to give your employer a fit note if you are off sick for more than 7 days in a row. A GP, hospital doctor, registered nurse, pharmacist, physiotherapist or occupational therapist can give you one.

Who qualifies

GOV.UK says you must be classed as an employee for SSP, have done some work for your employer, and be ill for at least one full working day. Your employer may also pay more than SSP under its own sick pay scheme. Check your written statement, because it must tell you about sick pay.

What is changing under the Employment Rights Act 2025?

The Employment Rights Act 2025 will give zero-hours and low-hours workers three new rights. But they are not law yet. GOV.UK's timeline, updated on 25 September 2026, says they will come in during 2027, and the exact dates will be set after consultation.

The consultation on the details ran from 2 June to 25 August 2026. The government now has to decide the final rules and put them in regulations.

The three new rights

  1. Guaranteed hours. If you qualify, your employer will have to offer you guaranteed hours that reflect the hours you regularly work over a reference period. You can turn it down and stay on your current contract if you prefer the flexibility.
  2. Reasonable notice of shifts. You will have a right to reasonable notice of your shifts and of any changes your employer makes to them.
  3. Pay for cancelled shifts. If your employer cancels, cuts short or moves your shift at short notice, they will have to pay you.

The government's factsheet says the guaranteed hours right will cover zero-hours workers and people on contracts below an "hours threshold". The government proposes the same threshold for the other two rights. The Act also extends the new rights to agency workers. Key details, such as the length of the reference period, the hours threshold, how much notice counts as reasonable, and the size of the payment, will be set in regulations.

The new payment will not apply if you cancel the shift yourself. It also will not apply if you and a colleague agree to swap shifts.

What changes, and when

ChangeStatus when we checked on 28 September 2026
Sick pay from day one, no earnings limitIn force since 6 April 2026
Fair Work Agency set up to enforce rightsIn force since 7 April 2026
6 months to bring a tribunal claim, up from 3Due 1 October 2026
Employers must take all reasonable steps to prevent sexual harassmentDue 30 October 2026
Unfair dismissal qualifying period cut to 6 monthsDue for dismissals from 1 January 2027
Guaranteed hours, reasonable notice, pay for cancelled shiftsDue in 2027, date not yet set

GOV.UK says all future dates depend on Parliament and may change. We will update this guide when the dates are confirmed.

What about cancelled shifts today?

Until the new law starts, the right to a short notice payment does not apply. GOV.UK's guidance tells employers not to cancel work at the last minute, and to be clear about any compensation. That is good practice, not a legal rule, so check your contract and your employer's policy.

If your hours are being cut or cancelled a lot, you can also try talking to your manager. Our guide to retail jobs with no experience covers how to find roles with steadier contracts.

Frequently asked questions

Can I turn down shifts on a zero-hours contract?

Yes. ACAS says you do not have to accept work you are offered. Your employer must not punish you for using a legal right. If you are worried that saying no will cost you future shifts, talk to your manager or the ACAS helpline.

Do I get paid holiday if I only work a few hours?

Yes. You build up holiday at 12.07% of the hours you work. Even a few hours a week adds up over a year. Your employer may pay it when you take time off, or as rolled-up holiday pay with each wage.

Can my employer stop me having a second job?

No. On a zero-hours contract, any clause that stops you working elsewhere cannot be enforced. You can ignore it, and your employer must not treat you badly for having another job.

Is a zero-hours contract legal?

Yes. Zero-hours contracts are legal in the UK. The Employment Rights Act 2025 does not ban them. If you qualify, it gives you the right to be offered guaranteed hours, but you can choose to stay on your current contract.

Where can I get free help?

ACAS gives free, confidential advice on employment rights through its helpline and website. If you think you are not getting the minimum wage, GOV.UK says you can contact ACAS about that too.

Looking for a retail job with steadier hours?

We collect live retail vacancies from retailers' careers sites in one place. Try our part-time retail jobs search for contracts with set hours. Our membership adds job alerts, so you hear about new jobs near you first.

_This is general information, not legal or careers advice. Check the retailer's advert and the official source before you act._

Sources and further reading

This guide is general information, not legal or careers advice. Check the retailer's advert and the official source before you act. Looking for a role? Browse retail jobs.

Last reviewed 28 September 2026.

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