The Government has published an 80-page consultation signalling its intention to press ahead with the introduction of new guaranteed hours offer (GHO) legislation next year. 

The consultation aims to gather views on the Government’s plans to implement the new legislation under the Employment Rights Act 2025 and we are encouraging employers in the health and social care sector to get involved and provide feedback. 

With an implementation date of 2027, political expediency may still halt the introduction of the legislation before it takes effect, but employers should look carefully at the consultation and consider what impact it could have on their organisations. 

Planning ahead where possible

Expected to impact workers on zero-hours and low-hours contracts, including agency workers, once the legislation is implemented, eligible workers will have to be offered a minimum number of paid guaranteed hours per week. The number of guaranteed hours offered to individual workers will be based on the hours they ‘regularly’ worked over the previous “reference period”.  In addition, workers will have a right to reasonable notice of shifts and payment where shifts are cancelled, curtailed or moved at short notice. However, despite 80-plus pages of consultation, there is still a lack of clarity regarding precisely which workers will be eligible for a GHO and how ‘regular hours’ will be measured and over what “reference period”.

Instead of providing clear proposals, the consultation puts forward a number of suggested options on these matters, which means employers can’t easily plan ahead.  For example, all zero-hour workers are potentially in scope, provided they work ‘regularly’ during the reference period. ‘Regularly’ could mean working every week for a set number of weeks, or it could mean working a set number of weeks and for a minimum number of hours each week. The Government has not yet decided what the criteria will be. 

A minimum-hours threshold to determine eligibility for a GHO is suggested. Workers whose contracted hours fall below this threshold would qualify for an offer of guaranteed hours. Whilst the consultation seeks feedback on where the threshold should be set, the Government’s preferred range is between 8 and 20 hours per week. This is despite the fact that putting a threshold of 16 hours or above could bring a whole tranche of part-time workers within the scope of the GHO regime.

There is also uncertainty surrounding the proposed “reference period” used to assess whether workers are eligible for a GHO or not. The Government has suggested an initial assessment period of 12 weeks but is consulting on whether longer periods should apply, with options including 26-week or 52-week review cycles.

With so much uncertainty remaining, it is going to be difficult for providers to plan ahead, and yet some forward thinking is crucial. Providers should aim to respond to the consultation, highlighting key areas of concern and the potential impact on the sector.

Administrative and financial considerations 

The potential financial, operational and administrative burden on health and social care providers will be significant. For example, if employers are required to offer workers on zero-hours or low-hours contracts a minimum of 20 hours per week if they have worked those hours in the previous “reference period”, ongoing staffing costs could rise considerably. Demand for care services often fluctuates, and providers may not always have enough work available to match those guaranteed hours. As a result, employers could find themselves paying staff for hours that are not actually worked. 

From an admin perspective, monitoring hours within the set reference periods and following the cycle of offering GHOs to eligible workers on a regular basis will inevitably be a timely and expensive process. After monitoring how many hours an individual worker has worked and how often, during the relevant reference period, employers will have to calculate a GHO and present it to the worker for them to accept or decline. If they accept, a new employment contract would have to be drawn up and signed accordingly. This process would have to be repeated at regular intervals, potentially every three months, regardless of whether the eligible worker had declined an offer previously. 

The consultation is running for 12 weeks and will close on 25 August 2026, providing an important opportunity for employers to give their views on how the incoming legislation should be implemented.

Key takeaways:

• Health and social care providers should engage with the consultation now, as it could have significant implications for the sector.
• The proposed changes could create substantial operational, workforce, administrative and financial burdens, making it essential for employers to scenario plan and consider the impact it could have on their organisation.