Zero Hours Contracts and Redundancy: Do You Have Any Rights?

Zero hours contracts have become increasingly common, but they create uncertainty around employment rights. If you're on one and your work has dried up or you've been told you're redundant, understanding your position can be confusing.

If you're uncertain whether your employer has handled things correctly in your specific situation, you can use our free Redundancy Rights Checker.

Your rights depend heavily on your employment status and how long you've been with the employer. Zero hours workers often have fewer protections than permanent employees, but you may have more rights than you realise.

Are you an employee or a worker?

This distinction shapes everything about your redundancy rights. Employees get the full range of employment protections, including redundancy pay after two years of service. Workers receive basic protections like minimum wage and holiday pay, but miss out on redundancy rights and protection from unfair dismissal (except in cases of discrimination or for asserting statutory rights).

Most people on zero hours contracts are classified as workers rather than employees, but this is not always the case. Employment tribunals consider the actual nature of the working relationship. The key difference lies in mutual obligation. If your contract states that you don't have to accept work offered and your employer doesn't have to provide it, you're likely a worker.

However, the legal reality can differ from what's written in your contract. If you've worked regular shifts for months or years, always accepted work when offered, and your employer treats you like other staff members, you may be considered an employee by a tribunal regardless of your contract terms.

Some zero hours workers have successfully challenged their status at employment tribunals, particularly where they've worked consistent patterns over long periods. This requires evidence and can be a lengthy process with no guaranteed outcome.

Qualifying for redundancy pay

Even if you are an employee, you need two years of continuous service to qualify for statutory redundancy pay. For zero hours workers, calculating continuous service can be complicated.

Under employment law, any week where you're employed under a contract counts towards continuous service, regardless of hours worked. Short breaks of less than a week typically don't break continuity. Longer gaps might, unless they're covered by exceptions like illness or agreed leave. Breaks in service due to temporary cessation of work might not necessarily break continuity if the contract remains in place.

If you've worked regularly with only brief gaps, these periods likely count towards your service length. Weeks where you're off sick or on holiday can also count, provided you're still employed.

Some employers deliberately create gaps in work patterns to prevent workers building up employment rights. If you can demonstrate this was the employer's intention, a tribunal might rule that your service is continuous anyway.

Redundancy Rights Checker

Answer a few questions about your situation and find out whether your redundancy is fair and legal. Get clear guidance on your rights in under two minutes.

Try our Redundancy Rights Checker free, here on this site →

Rights you do have as a worker

Even without employee status, zero hours workers have certain protections:

• National minimum wage for all hours worked
• Statutory paid holiday (5.6 weeks per year for full-time workers)
• Protection from discrimination based on protected characteristics
• Protection from detriment for whistleblowing
• Right to request more predictable working patterns after 26 weeks

You should also receive any notice period specified in your contract. If no notice period is stated, you're entitled to statutory minimum notice periods, which are one week for each year of service, up to a maximum of 12 weeks.

While workers can't claim unfair dismissal in most cases, you can still bring claims if you're dismissed for discriminatory reasons or for exercising your legal rights.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

What redundancy looks like for zero hours workers

Redundancy for zero hours workers often doesn't follow the traditional pattern. Instead of a formal redundancy process, employers frequently just stop offering shifts. This makes it harder to challenge, but if you can show that you had regular work which has stopped for genuine business reasons, this could still constitute redundancy.

Employers should still follow fair procedures when making redundancies, including consultation with affected staff and considering alternatives. For zero hours employees with sufficient service, this means the same process as other employees.

Employers making 20 or more redundancies must engage in collective consultation, which includes zero hours staff classified as employees. This means consultation periods of 30 days for 20-99 redundancies, or 45 days for 100 or more.

Getting help and protecting yourself

Keep detailed records of your work patterns, including dates, hours worked, and any correspondence with your employer. Save emails, text messages, or WhatsApp messages about shifts. This evidence could be valuable if you need to prove your employment status or continuous service.

Document how work is allocated, whether you're expected to accept shifts, and how much control your employer has over when and how you work. Note whether you work alongside permanent employees doing similar tasks.

ACAS provides free advice on employment rights and can help clarify your status. Their helpline can explain whether your situation might give you grounds for a tribunal claim. Citizens Advice can also help you understand your rights and may be able to provide representation if you need to take a case further.

If you're considering a tribunal claim, be aware that you generally have three months from the effective date of termination to submit your claim. Some claims have different time limits, so get advice quickly if you think you have grounds for action.

Zero hours contracts create genuine uncertainty around employment rights. While you may have fewer protections than permanent employees, you're not without rights entirely. Understanding your status and keeping good records gives you the best chance of securing any entitlements you may have.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Redundancy Rights Checker lets you answer a few questions about your situation and find out whether your redundancy is fair and legal. Get clear guidance on your rights in under two minutes. Try it now →