Employers in Wales should start preparing now for reforms to zero-hours contracts that are expected to come into force in early 2027, according to the CIPD, the professional body for HR and people development.
Marek Zemanik, Senior Public Policy Advisor for the UK nations at the CIPD, says the changes are intended to improve job security for workers, but that many of the proposed measures may be challenging for some employers, particularly in the hospitality and retail sectors.
Under the new rules, organisations will have a duty to offer qualifying workers guaranteed hours based on an average of their usual working hours, along with a right to reasonable notice of shifts. Compensation will become payable when shifts are cancelled, shortened or rescheduled at short notice.
Mr Zemanik uses the examples of a care home and a chain of restaurants in Wales, which could be required to offer guaranteed hours to zero and low-hours workers at regular intervals, while cancelling an evening shift at short notice could trigger a compensation payment.
The CIPD advises businesses to understand how many zero-hours and agency workers they employ, review their current working patterns and consider how the requirements could affect staffing costs, administration and operations.
According to Office for National Statistics data cited by the CIPD, there are 508,000 workers aged 16-24 on zero-hour contracts, and last year 637,000 women were on zero-hours contracts in the UK, compared with 593,000 men.
A CIPD survey of over 2,000 UK employers found that 31% of organisations expect to have to make redundancies because of the reforms.
The CIPD has called on the UK Government to carefully consider its proposals so they do not reduce access to flexible jobs, and for meaningful consultation on the new rights, including the reference period used to decide a worker’s guaranteed minimum hours.
