Zero-Hours Contract Hiring Practices: Why Businesses Must Rethink Overhiring in UK Employment Reforms

Zero-hours contracts have long been a go-to solution for businesses needing seasonal or flexible workers in a broad range of industries, including hospitality, healthcare, and retail. An estimated 1.1 million people in the UK are currently engaged under these contracts, with numbers rising sharply during peak hiring seasons. However, regulatory changes are set to challenge the viability of this model, forcing businesses to reassess their approach. Increased scrutiny around job security, lack of guaranteed hours, and limited worker protections are driving a shift towards greater accountability. With new compliance requirements on the horizon, organisations that rely on zero-hours contracts will need to rethink their workforce strategy to ensure agility while mitigating legal, financial, and reputational risks.

This article explores how the UK government’s proposed changes will impact zero-hours hiring and why businesses must shift towards more efficient workforce planning strategies—before new regulations take effect.

UK employment reforms: The impact on zero-hours hiring

Under the government’s New Deal for Working People, businesses will likely face stricter regulations on job security, scheduling, and pay fairness. Such changes would significantly impact how companies manage their seasonal and flexible workforce – and could have significant cost implications if businesses don’t innovate in their recruitment process. 

The key proposals include:

1. The right to contracted hours 

Workers will gain the right to request a contract that reflects their average working hours, which will limit businesses’ ability to rely on a pool of “on-call” staff without ongoing overheads. 

With many companies adopting a buffer hiring strategy—recruiting 20-30% more workers than needed to cover seasonal fluctuations and attrition—continuing with this approach will no longer be feasible under new regulations. Instead, businesses will need to shift towards more innovative solutions, like Realistic Job Assessments, that focus on improving retention and reducing unnecessary turnover, ensuring a more sustainable and cost-effective workforce strategy.

2. The right to a predictable schedule

Zero-hours contracts have long been a valuable tool for businesses, helping to bridge the gap in workforce planning, particularly when forecasting fluctuating staff needs and managing high volumes of entry-level hires. However, with new regulations tightening scheduling practices and reducing the flexibility to make last-minute changes, businesses will need to move beyond relying solely on this model. The emphasis will shift toward ensuring that hires are not only competent but also committed and aligned with the company’s values. This makes adopting solutions like job simulations critical—allowing businesses to improve hiring accuracy and reduce turnover by better matching candidates to roles that fit both the job’s demands and the company culture.

3. Day-one rights

Temporary workers or those on short-term contracts rarely receive full employment rights until they work for a certain amount of time (e.g., 12 weeks or longer). Under the new rules, temporary and seasonal workers will be entitled to certain protections from the first day of their employment. These include:

• Equal treatment: Temporary workers will have the right to be treated equally in terms of pay, benefits like sick pay / holiday pay / parental leave, and other conditions compared to permanent staff.
• Fair pay: Workers will be entitled to the same hourly rate as permanent employees doing the same job, eliminating any pay disparity.
• Job security: Workers on temporary or seasonal contracts will have stronger protections against unfair dismissal or poor treatment, even if their contracts are short-term.

For businesses relying on temporary workers, these proposals would drive higher staffing costs, underscoring the importance of more accurate hiring decisions. 

How Realistic Job Assessments can help mitigate financial implications and drive transformation 

Should the new proposals be passed, then it’s unlikely that many businesses operating on a “hire-and-hope” model will be sustainable. So, what’s the solution? 

The answer lies in Realistic Job Assessments (RJAs)—a hiring method that reduces attrition by up to 55% in entry-level roles.

How RJAs improve hiring results

1. Better Hiring Accuracy – RJAs help identify candidates who are the right fit, reducing the need for overhiring as a failsafe.
2. Expectation Alignment – Many seasonal hires leave because the job isn’t what they expected. RJAs give applicants an interactive preview of their tasks, ensuring they opt out if it’s not for them.
3. Lower Recruitment Costs – With fewer unnecessary hires, businesses can cut recruitment and training costs, while securing a more stable workforce.
4. Future-Proofing Against Labour Reforms – As employment laws shift, companies that invest in hiring accuracy now will be better prepared for an evolving regulatory landscape.

Final thoughts: Act now or risk falling behind

With impending reforms, businesses must adapt or face financial and legal risks associated with inefficient hiring practices. 

Implementing Realistic Job Assessments now will not only cut down on unnecessary hiring costs but also ensure compliance with upcoming employment regulations.

Now is the time for businesses to rethink how they approach zero-hours contract hiring—before the rules change for good.

For a demo or a casual chat about using Realistic Job Assessments to fit the best fit candidates for entry-level roles, get in touch with the ThriveMap team.