Zero hours contracts - does ending "one sided flexibility" simply end flexibility?

The transport sector has relied on flexible labour for decades. The Government’s latest consultation on zero-hours and similar contracts signals that this model could be about to change significantly. The consultation claims to end “one-sided flexibility”. However, it may go further than that….

For those operating in logistics and transport, there are some particular issues to watch.

1. Regular overtime may create an obligation to offer guaranteed hours

Drivers, warehouse staff and other workers engaged on zero-hours or low-hours arrangements could become entitled to guaranteed hours contracts if they regularly work above their contracted hours. Businesses that use fluctuating hours to manage demand may need to review how they roster staff and structure contracts. 

2. Agency labour is firmly in the Government’s sights

The proposals expressly extend many of the new protections to agency workers. Hirers could ultimately be responsible for making guaranteed hours offers to qualifying agency workers, potentially reducing the long-term flexibility traditionally associated with agency staffing in transport and logistics. 

3. Late changes to shifts could become expensive

The consultation proposes new rights to reasonable notice of shifts and compensation where shifts are cancelled, moved or curtailed at short notice. For operators dealing with fluctuating customer demand, vehicle breakdowns, traffic disruption and last-minute contract changes, this could have significant operational and cost implications. 

4. Workforce planning may become a compliance issue, not just an operational one

Employers may need systems capable of tracking hours worked over reference periods, monitoring when workers become eligible for guaranteed hours, recording shift notifications and evidencing compliance. Poor workforce planning could create both financial exposure and employment tribunal risk. 

The consultation closes on 25 August 2026, but transport operators should already be assessing how dependent they are on variable-hours arrangements, agency workers and short-notice scheduling. The businesses that start planning now are likely to be best placed when the final regulations arrive.