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The UK Governmental consultation on the prohibition of exploitative zero-hours contracts was completed in early 2026, and the Employment Rights Bill is to be gradually implemented until 2027. Focusing on insecure employment that is widespread in the hospitality sector, the reforms require guaranteed hours, predictability of shifts, and compensation for cancellations, without abolishing the voluntary zero-hours access. The inflexible staffing of operations with changing demand is predicted to cause a 15% cut in jobs- possibly 90,000 in the city- being forecasted by leaders in London hospitality through UKHospitality. Unions rejoice in the improved rights, yet businesses demand individual exemptions to the peaks of seasons to prevent shutting down pubs, restaurants, and hotels.
Zero-Hours Ban Implications
Feedback on the consultation revealed how hospitality depends on flexible contracts of 600,000 employees in London. Progressive phaseout of guaranteed hours starts in October 2026, complete ban in 2027, and an increase in fixed costs by 10-20%. The smaller venues are threatened with lack of viability, the critics warn, unless changes are made.
Hospitality Job Cut Projections
UKHospitality forecasts unpredictable trade, post-Brexit/COVID strains to reduce buffers by 15% of the staffing. London, where the casual labor is high, is at risk of service failures and business closure; the pressure to provide sector-related advice grows.
Official Social Update
FAQs
When does zero-hours ban start?
Phased: shift rules October 2026, full exploitative ban 2027. Allows voluntary zero-hours if requested by workers.
Why hospitality fears 15% cuts?
Flexibility loss for variable demand raises costs; London sector employs 600K on casual terms, risking overstaffing or service drops.
What rights do workers gain?
Guaranteed hours based on 12-week average, cancellation pay, unfair dismissal protection from day one.
Can businesses keep zero-hours?
Yes, for staff opting in voluntarily; must offer guaranteed alternative to regulars. Consultations shape details.
How to prepare in London?
Review rotas, forecast hours, train managers on new rules; seek UKHospitality guidance for exemptions.
