The Employment Rights Act 2025 (ERA 2025) received Royal Assent on 18th December 2025 and represents the most significant overhaul of UK employment law in a generation.
Changes are being implemented in phases across 2026 and 2027, with the first wave having already taken effect in April 2026, and further changes due in October 2026 and January 2027.
The reforms are vast and many, but one of the key reforms relates to strengthening the rights of zero-hours and low-hours workers. As many special schools use these types of arrangements to engage staff such as supply teachers, therapy staff, or specialist tutors, it will be important for senior members to keep up to date with respect to these proposals.
At this stage, the proposed date for implementation of these new rights is yet to be confirmed. However, on 2nd June 2026, the government launched a consultation, focusing on zero-hours and low-hours contracts to seek views regarding the detail of the proposals. This article considers what the proposals mean for all special schools - maintained, academy, independent and non-maintained special schools. The consultation is open until 25th August 2026.
The key proposals
The consultation focuses on the following three core rights that qualifying zero-hours and low-hours workers will enjoy once the regulations come into force:
Right to guaranteed hours
Workers on zero-hours contracts, or on contracts below a specified hours threshold (low-hours contracts), will be entitled to guaranteed hours reflecting their actual working pattern over a reference period.
The hours threshold and the reference period are yet to be defined, and the current consultation is seeking views to assist with determining these issues.
The government's preferred hours threshold sits between 8 and 20 hours per week, and its preferred initial reference period is 12 weeks, although alternatives of 26 and 52 weeks remain under consideration.
To qualify for guaranteed hours, workers must have worked with sufficient regularity during the reference period. The consultation therefore also seeks views on two options for testing whether a worker has worked with sufficient regularity, which include:
- a requirement that the worker has worked in a minimum number of weeks, or
- a combined test requiring both a minimum number of weeks and a minimum number of hours above contracted hours.
Right to reasonable notice of shifts.
Shift workers will need to be given reasonable notice of shifts and of any changes to them where they are subject to a zero-hours contract or a contract where they do not know their shift pattern in advance. The regulations will set what that reasonable notice period will be, and the current consultation is canvassing opinions on this point.
Payment for short-notice cancellations
Eligible workers will also be entitled to compensation where a shift is cancelled, moved or reduced at short notice. The definition of "short notice" cannot exceed seven days, and the consultation is seeking views on the length of time that should be considered short notice. The government is also considering a separate "very short notice" tier which would attract a higher level of compensation. The consultation proposes that compensation for the cancellation of shifts be based on a percentage of expected earnings, or on the National Living Wage or National Minimum Wage rates and again this is something upon which the government is seeking input via the consultation.
Enforcement
The government proposes that the right to short-notice payments may be enforced both through employment tribunals and by the Fair Work Agency through notices of underpayment and has asked for views in respect of this proposal. Currently the preferred penalty is 50% of any arrears owed, with a minimum penalty of £100 and a maximum of £5,000 per worker, however, this is also subject to consultation.
Agency workers
It is important to note that it is intended that the new rights detailed above will cover not only directly hired zero and low-hours workers, but also agency workers. The government considers that extending the measures to cover agency workers will prevent agency work being used by employers to avoid the additional rights that are being made available.
It is expected however, that the new rights will need to apply differently to agency workers to reflect the nature of agency work and the relationship between agency worker, agency and hirer. We are awaiting further details, which will be set out in the regulations, however, it is currently anticipated that liability for the new rights, in any agency relationship will be as follows:
- Guaranteed hours: The School (as the Hirer) would have the obligation to make a guaranteed hours offer to qualifying agency workers, reflecting the hours worked under the school’s direction and supervision during the reference period. The government is also considering whether, in some circumstances, this duty should instead fall on the agency or other intermediary.
- Reasonable notice of shifts: It is expected that both the agencies and hirers (i.e. schools) will have an obligation to provide reasonable notice to agency workers. Where a tribunal finds that unreasonable notice was given, it is expected that a tribunal will be able to apportion liability between the agency and hirer based on the extent to which each party was responsible for the failure to provide reasonable notice.
- Short notice cancellation payments: It is expected that it will be the agency (not hirers) that will have the obligation to make payments to agency workers where shifts are cancelled at short notice, although it is anticipated that agencies will look to revise their terms so that they are able to recoup these payments from hirers where the hirer is responsible for the short notice.
Relevance to special schools
Special schools should pay particular attention to these reforms. Many special schools rely on staff who work on zero-hours or low-hours arrangements, whether directly hired or engaged via an agency, as supply teachers, therapy staff, or specialist tutors for music, outdoor education or vocational skills. These roles often involve variable hours that fluctuate with the academic calendar and term-time demands.
Special schools will need to consider how the reference period and regularity tests apply to staff whose working hours may naturally vary across terms and holidays.
The treatment of seasonal and genuinely temporary work is an issue that remains unclear. The consultation acknowledges that the existing statutory framework for limited-term contracts may not adequately capture demand that falls away at the end of term or during holiday periods, and views are being sought on whether a broader definition of "temporary need" is required.
Special schools should also consider the practical implications of the shift-notice requirements and short-notice cancellation payments, particularly where timetabling changes, staff absences or pupil numbers can necessitate last-minute adjustments to working patterns – which may shortly prove to be costly.
Next steps
The consultation closes on 25th August 2026 and responses can be submitted via the government's online platform or by email. Special schools may wish to respond to the consultation to ensure that the particular needs of the sector are reflected in the final regulations. NASS will also be submitting a response.
We would encourage special schools to begin reviewing their current use of zero-hours and low-hours arrangements so that they are well placed to adapt once the changes take effect.
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