Zero hours contract: what it means and the rules

By the HRPricing editorial teamReviewed October 18, 2026How we research and score

A zero hours contract is a UK work contract that guarantees no minimum hours: the employer offers work when it needs it and pays only for hours worked. GOV.UK says zero-hours workers get statutory annual leave and the National Minimum Wage like regular workers, and they can ignore a clause that bans them from working for someone else.

Zero hours contract: a UK contract under which the employer does not guarantee any minimum hours of work and pays only for the hours actually worked.

How a zero hours contract works

GOV.UK describes zero-hours contracts as usually for piece work or on-call work, giving interpreters as an example. Hours change week to week, and pay follows the hours. People also call them 0 hour contracts or casual contracts. For agency work paid through a separate employer, see umbrella companies.

The rights that apply, per GOV.UK:

  • Minimum wage: GBP 12.71 an hour at 21 and over from April 1, 2026; see UK minimum wage rates.
  • Holiday: statutory annual leave, as for regular workers; see UK leave rules.
  • No exclusivity: a clause banning work for other employers can be ignored.

Example: one 18-hour week

Pay and employer National Insurance for 18 hours at minimum wage
ItemGBP
Gross pay: 18 hours x 12.71228.78
Employer National Insurance: 15% above GBP 96 a week19.92

HRPricing arithmetic, Oct 2026. Rates from GOV.UK minimum wage and employer rates and thresholds 2026 to 2027.

Holiday pay is on top. Pension auto-enrollment depends on earnings; the employer minimum is 3% of qualifying earnings from GBP 6,240 a year. Full UK employer costs are in hiring in the UK through an EOR and pay levels in UK salaries.

Our research did not check the zero-hours provisions of the Employment Rights Act 2025, and the GOV.UK page we read (updated September 10, 2026) does not mention it. Check for changes before you write a contract.

Is there a zero hours contract in the US?

Not as a legal category. US federal law does not require guaranteed hours, so on-call, per diem and PRN roles work much like UK zero-hours jobs. The US rules that matter are pay rules: at least $7.25 an hour federally, higher in many states (see 2026 minimum wages), and 1.5 times the regular rate for hours over 40 in a workweek for non-exempt staff (29 USC 207). Overtime cannot be swapped for time off in lieu in the private sector. Agency temps are covered under temp agency.

Frequently asked questions

What is a zero hours contract?
It is a UK work contract with no guaranteed minimum hours. The employer offers work as needed and pays only for hours worked, at no less than the National Minimum Wage (GBP 12.71 an hour at 21 and over from April 2026).
What are 0 hour contracts used for?
GOV.UK says they are usually for piece work or on-call work, such as interpreting, where the amount of work changes week to week.
Do zero hours workers get holiday pay?
Yes. GOV.UK says zero-hours workers are entitled to statutory annual leave and the National Minimum Wage in the same way as regular workers.
Can a zero hours contract stop you working for someone else?
No. GOV.UK says zero-hours workers can ignore a clause in their contract that bans them from looking for or accepting work from another employer.
Are zero hours contracts legal in the US?
The US has no zero-hours contract category, and federal law does not require employers to guarantee hours. Workers must still get at least the federal minimum wage of $7.25 an hour, or a higher state rate, and overtime at 1.5 times their rate after 40 hours if non-exempt.
Sources (6)
  1. GOV.UK: Contract types and employer responsibilities: zero-hour contracts (page metadata updated Sep 10, 2026; checked Oct 18, 2026)
  2. GOV.UK: National Minimum Wage and National Living Wage rates (checked Oct 16, 2026)
  3. GOV.UK: Rates and thresholds for employers 2026 to 2027 (last updated Sep 1, 2026; checked Oct 16, 2026)
  4. GOV.UK: Workplace pensions: what you, your employer and the government pay (checked Oct 16, 2026)
  5. Cornell LII (statute text): 29 USC 207 (overtime and compensatory time) (checked Oct 18, 2026)
  6. US Department of Labor: Minimum wage (checked Oct 16, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.