Upcoming changes to zero-hours contract legislation will impact salons and spas, particularly those relying on flexible or casual staff during peak periods – here's how
The new Employment Rights Bill is expected to become law in September or early October 2025, with zero-hours contract reforms likely phased in during 2027.
Salon and spa owners that rely on zero-hours contracts should start preparing now.
Key zero-hours contract reforms affecting the beauty industry
From the Bill, there are three key rights for zero-hours workers:
1. Guaranteed-hours contracts must be offered to regular staff
If workers have regularly worked a certain number of hours over a certain period of time (which the Government has said is likely to be 12 weeks), employers will have an obligation to offer them a guaranteed-hours contract.
Seasonal spikes like summer or Christmas, where the demand for workers is temporary, will likely be recognised as legitimate exceptions to this obligation.
However, as the 2027 implementation nears, further clarity on exemptions will be needed.
Importantly, employees won’t be forced into these contracts and therefore if someone prefers flexible hours, they can decline.
But should they decline, the obligation to offer a new guaranteed hours contract will arise again if the same conditions are met.
2. Legal right to reasonable notice of shifts
Salons and spas have historically relied on short-notice shift changes to fill staffing gaps.
Employers are not under any current obligation to give a specific period of notice unless they have set this out in their contractual terms.
The new legislation will introduce a legal requirement for “reasonable notice”.
What counts as reasonable remains undefined, although the Government has said it will not exceed seven days, so business owners must closely monitor forthcoming developments.
3. Notice and compensation for altered or cancelled shifts
This right comes with two components:
- Advance notice: Staff must receive adequate warning before shifts are shortened, moved or cancelled.
- Compensation: Workers will be entitled to compensation when the required notice has not been given.
For example, if a weekend shift is cancelled with insufficient notice, the employee will be entitled to compensation.
What the required notice will be, what compensation will be payable, and the exceptions to this requirement are yet to be clarified.
What these reforms mean for salon and spa employers
Flexibility in the workforce has always been recognised as a real driver of economic growth but the new rules are aimed at addressing what is seen as one-sided flexibility.
These reforms represent a significant shift for spa and salon employers. Zero‑hours workers, including agency workers, will gain stronger protections and employers will be faced with new obligations.
While flexibility will still be available for those who want it, businesses must be ready to formalise hours, provide proper notice, and compensate where shifts are cancelled or changed at short notice.
Spa and salon owners who proactively review contracts, update policies and maintain compliance awareness will be best positioned for a smooth transition in 2027.
Penalties for not complying with the new rules are yet to be clarified.
4 actions salon and spa owners should take now
1. Audit your staffing model
Review your flexible workforce: who relies on casual or zero‑hours contracts, and why?
2. Map peak-demand periods for your business
Identify times where flexibility is essential versus where hours could be regularised.
3. Stay up to date on legislative changes
Keep abreast of Government updates and legal guidance, especially around exemptions and definitions.
The Government has announced that they will start a consultation this autumn on how the new rules will work.
4. Don’t rush into major changes too early
It is too early to know exactly how the changes will affect your business as so many of the key details of the new rules have yet to be clarified.
However, there’s no doubt that in future zero-hours contracts will come with a host of new obligations.
Therefore, it is a good idea to start thinking about areas of your business where flexibility is essential and those where you may have scope to move to more settled arrangements.
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About the author
Gillian McAteer is the director of employment law at Citation, which provides expert health & safety and employment law services for UK SMEs.
Qualifying as a solicitor in 1992, Gillian McAteer has been with Citation since 2003, and her extensive commercial experience has equipped her with valuable insights into clients’ pain points and the ability to guide businesses to the right solution in any given situation.
Citation is led by a team of highly qualified HR and employment law specialists, all of whom are either solicitors, barristers or have many years of commercial HR experience, as well as chartered and certified health & safety practitioners.
