Flexibility and fairness needed: how the Employment Rights Act affects warehousing

# What happened Act became law late in 2025. It introduces a new right for qualifying zero-hours and low-hours workers to be offered guaranteed hours based on their recent work. Many operational details relevant to warehouses remain undecided and are still under consultation.

# Why this matters for warehouses Warehousing is seasonal and demand often changes at short notice. How the law defines the reference period for calculating guaranteed hours, who must offer the hours for agency staff, and how frequently the calculation must be repeated will shape labour costs and operational flexibility.

# Main unresolved questions

• Reference period: the Government prefers a 12-week reference period. UK Warehousing Association (UKWA) argues for 52 weeks because a 3-month snapshot can turn a temporary peak (for example, a Christmas surge) into an ongoing contractual obligation. Warehouses with seasonal peaks say a longer period better reflects normal demand variation.

• Agency worker obligations: if an agency worker splits time across multiple customers, a single end-hirer may not know when that worker is actually available. UKWA's position is that the agency should carry the obligation to offer guaranteed hours because agencies have visibility across placements.

• Definition of "low hours" and repetition frequency: policymakers are still consulting on how "low hours" will be defined and how often the calculation of guaranteed hours must be repeated.

• Shift notice and cancellations: the Act will provide rights around reasonable notice of shifts and compensation when shifts are cancelled, moved, or curtailed at short notice. The exact thresholds and payment rules are not yet finalised.

# Practical considerations for operators Start by mapping how your workforce is scheduled across the year. Identify where short-term peaks occur and which roles are routinely filled by agency staff. That mapping will help you assess exposure if a short reference period is imposed.

However, avoid over-preparing for specific compliance models until the Government publishes final regulations. The panel at UKWA's Member Connect Series warned against making large structural changes while rules remain in flux.

# Historical context cited by UKWA

# What UKWA is doing UKWA set out its position in its response to the government's 'Make Work Pay' consultation, arguing for a 52-week reference period and for agencies to bear obligations for their workers. UKWA's response is available on their website.

# Immediate next steps for readers

• Map annual demand cycles and role types (permanent vs agency).
• Track the Government consultations and publish regulations to understand final definitions and required operational changes.
• Discuss scenarios with your HR and compliance teams, focusing on agency contractual arrangements and the practicalities of shift-notice compensation.

# Bottom line The Act aims to increase stability for low-hours and zero-hours workers. For warehouses, the policy choices still to be decided—reference period length, responsibility for agency staff, and shift-notice rules—will determine whether those protections are workable alongside standard warehousing variability.