Make Work Pay Consultation: Why Your Business Needs to Have Its Say

The Government is currently consulting on how it will implement new rights relating to guaranteed hours, shift notice requirements and compensation for cancelled or changed shifts as part of its wider Make Work Pay agenda and the Employment Rights Act 2025.

With implementation due in 2027 and the consultation closing at 11:59pm on 25 August 2026, the decisions made now could have significant implications for employers that engage temporary, flexible, seasonal, casual or agency workers. You can review the Government consultation on GOV.UK.

The Employment Rights Act 2025 requires regulations to introduce requirements already scheduled for 2027. The details are being discussed now so that the necessary regulations can be prepared ahead of their full implementation next year.

That means there is very little time, and certainly none to waste, before the consultation closes on 25 August 2026.

While many businesses may view this as an issue primarily affecting recruitment businesses and agencies, the reality is that the proposed changes could have the greatest impact on organisations that rely on workforce flexibility to meet operational demands.

The outcome of this consultation will help determine whether the final regulations strike the right balance between worker protection and business flexibility, or whether they create additional costs, administrative burdens and complexity for employers, agencies, umbrella companies and workers alike.

What Is Being Proposed?

The Government is consulting on three new rights:

• A right to guaranteed hours.
• A right to reasonable notice of shifts and shift changes.
• A right to compensation where shifts are cancelled, moved or shortened at short notice.

The intention is to address what the Government describes as “one-sided flexibility” and provide workers with greater certainty around their income and working patterns.

However, for businesses operating in sectors where demand can fluctuate daily or weekly, the practical implications could be significant.

Guaranteed Hours: What Could This Mean for Employers?

One of the most important proposals is the introduction of a right to guaranteed hours for qualifying workers.

The Government is considering a threshold of between eight and 20 guaranteed hours per week, with an initial 12-week reference period used to assess working patterns. Where workers regularly work above their contracted hours, they could become entitled to an offer of guaranteed hours that reflects those patterns.

For employers, this raises several important questions:

• What impact will guaranteed hours have on workforce flexibility?
• How will organisations manage changing demand if workers become entitled to more predictable hours?
• What will this mean for seasonal operations, project-based work and temporary staffing models?
• Will businesses need to rethink how they engage temporary labour?

These are exactly the types of issues the Government is seeking feedback on before finalising the regulations.

What Is the Reference Period?

In the context of the Government’s Make Work Pay proposals, a reference period is a set period of time used to look back at a worker’s actual working pattern and determine the hours they typically work.

Why Does the Reference Period Matter?

For agency workers whose hours can fluctuate, a reference period provides a way of assessing their average working pattern over a specified timeframe.

Under the Government’s Make Work Pay proposals, this could be used to determine eligibility for certain rights and protections. The length and methodology of the reference period are currently subject to consultation, and any changes could have implications for both hirers and recruitment businesses.

After the reference period, employers may be required to offer workers guaranteed hours based on the pattern of hours they have actually worked, reducing their ability to rely on purely ad hoc arrangements.

These guaranteed hours could potentially be offered through a permanent contract, although the exact requirements are still to be determined.

Notice of Shifts and Shift Changes

The consultation also proposes a new right for workers to receive reasonable notice of shifts and shift changes. The aim is understandable: to give workers greater certainty and more opportunity to plan their lives.

However, many businesses operate in environments where staffing requirements can change quickly due to:

• Changes in customer demand.
• Seasonal peaks.
• Client requirements.
• Unexpected absences.
• Operational pressures.

The challenge is determining what constitutes “reasonable notice” in sectors where flexibility is a business necessity rather than a choice.

Short-Notice Cancellation Payments

Perhaps the most significant concern for many employers is the proposal to introduce payments where shifts are cancelled, moved or curtailed at short notice.

While the principle is intended to compensate workers who have committed their time and availability, businesses will understandably be asking:

• Who bears the cost of cancellations?
• How will payments be calculated?
• What happens when demand changes unexpectedly?
• Will clients ultimately be responsible for these additional costs?

For organisations that regularly adjust staffing levels in response to operational needs, the answers to these questions could have a direct impact on budgets and workforce planning.

Why Your Voice Matters

The regulations have not yet been finalised. This consultation is the Government’s opportunity to understand how the proposals will operate in the real world before the detailed rules are drafted.

As a recruitment business, we work closely with employers across a range of sectors and understand the importance of balancing worker protections with the flexibility many organisations need to operate effectively.

The Government needs to hear from businesses that:

• Use agency workers.
• Employ temporary or casual workers directly.
• Experience fluctuating demand.
• Depend on flexible staffing models.
• May be affected by increased employment costs and administrative requirements.

If businesses do not engage with the consultation process, there is a risk that the final regulations will fail to reflect the operational realities faced by employers.

Have Your Say

The consultation closes at 11:59pm on 25 August 2026.

We strongly encourage our clients to review the proposals and submit their views directly to the Government.

Read the full consultation and supporting documents on GOV.UK.

Submit your response through the Government’s online consultation form.

If you do not have time to complete the consultation yourself but would still like your views to be heard, please get in touch. We are gathering feedback from clients across our network and will seek to reflect common concerns and practical insights within our own response.

The decisions made now could shape the future of flexible working for years to come. This is an opportunity for employers to influence the outcome and help ensure the final legislation works for businesses as well as workers.