Ban on zero-hours contracts UK: what universities need to do now
5 min read time
The discussion around the ban on zero-hours contracts in the UK has rapidly shifted from political debate to operational reality. For universities and organisations that depend on temporary, casual or agency labour, the reforms set out in the Employment Rights Act 2025 will significantly change how working hours are structured, communicated and managed.
While zero-hours contracts are not being removed entirely, the direction is clear. The focus is on reducing one-sided flexibility and improving certainty around working hours and income.
For universities, this raises an immediate and practical challenge: how will these changes affect workforce planning, compliance and cost, particularly where large temporary workforces are managed across multiple departments and suppliers?
A shift from flexibility to fairness
Zero-hours contracts have long been used to help organisations respond quickly to changes in demand. In higher education, this is especially relevant across functions such as student services, administration, estates, events and project delivery, where demand can vary significantly throughout the academic year.
However, these arrangements have also created challenges for workers. Irregular hours can make it difficult to manage finances, organise childcare or plan around other commitments.
The new reforms seek to address this imbalance. Workers who regularly work established patterns will gain the right to be offered contracts that reflect those hours, alongside improved rights to shift notice and compensation for late changes.
This is not simply a technical update. It represents a broader redefinition of flexibility, moving from employer-led convenience to a more balanced and predictable approach for both parties.
Why this matters now
Recent policy direction indicates that these changes will affect a substantial portion of the UK workforce, particularly in sectors with high levels of temporary or part-time work.
For universities, the implications are particularly wide-ranging. Temporary and agency labour is often embedded across multiple departments, meaning the impact of reform is not limited to HR alone. It extends into operational planning, finance, procurement and supplier management.
Failure to respond effectively creates several risks:
- Increased exposure to non-compliance
- Rising labour costs linked to guaranteed hours and compensation
- Reduced workforce stability if contracts are not aligned with actual working patterns
This is not a narrow HR issue; it is a cross-institution challenge that requires a coordinated response.
What many universities are still missing
One of the biggest risks facing universities is underestimating how operational these changes are likely to be.
This is not just about updating contract templates. It requires a clear understanding of how work is delivered across the institution over time, supported by reliable data and consistent processes.
Without this:
- It becomes difficult to identify which workers qualify for guaranteed hours
- Universities may struggle to track reference periods and working patterns
- Compliance decisions risk being inconsistent across departments
The real challenge is not the legislation itself, but the gap between how flexible workforces operate in practice and how they are formally contracted.
This becomes even more complex when agency labour is involved. Responsibility for compliance may be shared between universities and recruitment partners, creating additional risk if roles, data and obligations are not clearly defined.
The opportunity behind the change
While much of the focus has been on compliance risk, there is also a strategic opportunity.
Improved clarity around hours and income can lead to:
- Stronger workforce engagement
- Lower turnover among temporary staff
- Greater continuity in service delivery
- Reduced reliance on reactive hiring
For universities, where service quality and student experience are key, a more stable and predictable temporary workforce can deliver tangible operational benefits.
Those that take early action will be better positioned to design workforce models that are not only compliant, but also more resilient and efficient.
Get ahead today
The impact of the ban on zero-hours contracts in the UK extends well beyond headline changes. From guaranteed hours and notice requirements to compensation for cancelled or altered shifts, there are multiple elements that need to be addressed.
Our latest Tate guide sets out what is changing, how it applies to temporary and agency workers, and the practical steps universities should take to prepare.
Download the guide now to understand:
- What the legislation requires in practice
- How guaranteed hours will be assessed and implemented
- The actions universities should take now to remain compliant
Taking a proactive approach will help ensure your workforce strategy is ready for the next phase of employment regulation.
