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Wednesday, August 26, 2026

Zero hours contract reforms risk raising costs and cutting youth jobs, CIPD warns - CIPD

The CIPD has warned that complex new rights for people on zero and short hours contracts risk raising employment costs and will push employers towards greater use of temporary and self-employed staff. The warning comes in our response to the UK Government's consultation on the reforms, which closes today.

We're calling for tripartite talks between government, employer bodies and trade unions to agree changes that make the rules workable in practice. Without this, the reforms will undermine workforce flexibility and employment opportunities, particularly for students and other workers unable to commit to regular hours due to their personal circumstances.

What our data shows

Our survey of employers who use zero hours contracts found:

  • Two-thirds (65%) expect their HR and management costs to rise because of the reforms
  • A third (31%) expect to make redundancies
  • A third (33%) expect to rely more on self-employed contractors, temporary staff or casual workers instead

Young people stand to lose out most

Nearly half a million (479,000) young people aged 16 to 24 are currently on zero hours contracts. That includes 250,000 students who use them to balance study and work.

CIPD research show that most people on zero hours contracts are classed by their employer as ‘employees’, not ‘workers’, and their job satisfaction is comparable to people working regular hours in similar roles. Nine in ten (89%) say their contract suits them well. Only 18% want more hours in their current job,...



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