Zero-hours contract reforms: what could they mean for hospitality businesses?
Hospitality relies heavily on a flexible workforce. Demand can change rapidly according to weekends, school holidays, weather, major events and bookings, meaning operators need to be able to respond quickly. At the same time, flexible working can be valuable to employees, including students, working parents and those with caring responsibilities. The proposed reforms therefore raise an important question for the sector: can businesses provide greater security for workers without losing the flexibility they need to operate effectively?
Three proposed rights for workers - The Government’s proposals centre around three core rights for qualifying workers.
- First, workers would have the right to guaranteed hours based on their working patterns over a reference period. The Government’s current preference is for an initial 12-week reference period, although this remains subject to consultation.
- Second, employers would need to provide reasonable notice of shifts, potentially making some of the last-minute rota changes common within hospitality more difficult.
- Third, workers could receive compensation when shifts are cancelled, curtailed or moved at short notice, creating a potential additional cost for businesses operating in an unpredictable environment.
From reactive to data-led workforce planning
If the proposals become law, businesses may need to move away from informal, reactive workforce planning towards a more structured and data-led approach. Guaranteed-hours provisions could be particularly challenging for seasonal businesses. A 12-week period may not always reflect the true working pattern of someone employed by a holiday park or attraction, where demand can fluctuate dramatically between peak and off-peak seasons.
A longer reference period, such as 26 weeks, could potentially provide a more representative picture of an individual's typical hours, although the final framework is still to be determined.
Similarly, requirements around shift notice could mean operators need to improve forecasting, scheduling and communication systems to reduce the need for last-minute changes. Cancellation payments could also have a direct financial impact, particularly for businesses already operating on tight margins.
An opportunity as well as a challenge
It would be easy to view the reforms purely as an additional compliance burden. However, they could also provide an opportunity to address some of hospitality’s longstanding workforce challenges. Greater predictability could help improve staff retention, engagement and productivity, while making careers within hospitality and tourism more attractive to potential employees.
Some businesses are already exploring hybrid approaches, combining guaranteed hours with opportunities for employees to take on additional shifts when demand increases. This type of model could potentially provide workers with greater security while allowing operators to maintain a degree of operational agility. For holiday parks and visitor attractions in particular, better workforce forecasting could also encourage businesses to examine where technology, automation and cross-training could help manage fluctuations in demand.
What happens next?
Much of the detail remains subject to consultation, including the threshold for low-hours workers, the level of regularity required during a reference period, the length of initial and subsequent reference periods, and what constitutes “reasonable notice”. These details will ultimately determine how the reforms work in practice.
For hospitality businesses, now could therefore be a good time to start reviewing workforce data and working patterns, rather than waiting for the final legislation. Understanding how many hours employees actually work, when demand peaks and where last-minute rota changes occur can help businesses prepare for whatever framework emerges.
The central challenge is finding the right balance. Workers need greater certainty and protection, while hospitality businesses need to retain the ability to respond to rapidly changing demand. As the UK’s visitor economy continues to evolve, workforce strategy will be just as important as visitor experience, technology and diversification in building resilient tourism businesses.
The Land Leisure & Tourism Show brings together holiday parks, visitor attractions, hospitality businesses and industry experts to explore the challenges and opportunities shaping the future of the sector, including the practical issues around workforce planning, operational efficiency and building sustainable businesses.
The Land Leisure & Tourism Show takes place at NEC Birmingham on 4-5 November 2026.


