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Published 04 Mar 2025

2 min read

Zero hours contracts ban to apply to agency workers

A ban on zero hours contracts will apply to agency workers, the government has confirmed.

Zero hours contracts ban to apply to agency workers
James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 4 March 2025

Under the proposed measures, all workers, including agency workers, should be able to access a contract that reflects their regular working hours.

Ministers believe the move will prevent agency work becoming a “loophole” in its plans to end “exploitative” zero hours contracts.

The plan is part of the government’s employment rights bill, which also includes measures such as:

  • increasing the penalty companies face for not properly consulting employees during mass redundancies
  • making statutory sick pay a legal right for all workers
  • ensuring people employed through umbrella companies get the same rights and protections as those hired directly by recruitment agencies

Government ‘turning the tide’ on worker’s rights

The government believes its proposed employment right reforms will improve working people’s day-to-day lives and put more money in their pockets, as well as boost economic growth.

Angela Rayner, the deputy prime minister, said millions of workers have been forced to face insecure, low paid and irregular work “for too long”.

“We are turning the tide with the biggest upgrade to workers’ rights in a generation,” she commented.

Business secretary Jonathan Reynolds added that worker-friendly practices help to boost job satisfaction, retention and productivity.

“We want to go further and untap the UK’s full potential by attracting the best talent and giving business the confidence to hire to help the economy grow,” he said.

Unions hail ‘common-sense reforms’

The proposals have been welcomed by trade unions body the TUC, which described them as “common-sense reforms”.

“Everyone deserves security and respect at work,” said general secretary Paul Nowak.

“Policies like banning exploitative zero-hours contracts are long overdue and necessary.”

James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

James has spent almost 20 years writing news articles, guides and features, with a strong focus on the legal and financial services sectors.

Published: 4 March 2025

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 4 March 2025

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