Are fixed hours really the future? Legal insight into business groups’ concerns about the Employment Rights Bill

The Government has called it the biggest upgrade to workers’ rights in a generation, but five of the UK’s biggest business groups say the Employment Rights Bill could do more harm than good.

According to a BBC report, one of the group’s largest concerns is the push to guarantee fixed hours for workers who have previously been on zero-hour contracts.

It is a move that has sparked praise in some corners, but unease in others, especially from employers who rely on flexible working models.

What is in the Bill?

Although the Bill is still under scrutiny in the House of Lords, one of its headline provisions is a new right for workers to request predictable, fixed hours after a certain period of service.

The intention is to crack down on “one-sided flexibility”, where workers are technically employed but offered little to no regular work.

Employers would be required to give serious consideration to such requests, and only reject them on specific, legally permitted grounds.

Why business groups are pushing back

The British Chambers of Commerce, CBI, FSB, IoD and Make UK have written a joint letter calling for urgent changes to the Bill. They argue that mandatory fixed-hours contracts could:

• Add unnecessary administrative burdens
• Reduce flexibility for both employers and workers
• Discourage hiring at a time of economic uncertainty
• Increase the risk of employment tribunal claims

They are not opposed to better protections for workers, but they are calling for more consultation and a rethink of how predictability can be introduced without stifling flexibility.

What employers should now consider

While the Bill is not yet law, its direction is clear. Employers relying on casual or zero-hour workers should take this opportunity to review their arrangements, policies and contracts.

You may wish to:

• Identify roles that genuinely require flexible or casual work
• Consider whether a guaranteed hours arrangement could work in practice
• Review your process for handling flexible working and contract variation requests
• Plan for the potential administrative impact of more formalised hours

Most importantly, ensure any zero-hour arrangements are fair, transparent and legally sound.

The Bill is part of a larger incentive for more stable work, and businesses that ignore that change may find themselves on the back foot.

If your business relies on flexible contracts and you are unsure how the proposed Bill could affect your workforce planning, we are here to help.

Our employment law team can provide practical, commercially focused advice to ensure your contracts and policies are future-proof. Speak with us today.