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Contracts & Leaving

What is a Zero-hours contract?

Updated 18 Aug 2026 5 min read

A zero-hours contract is an employment contract under which the employer is not obliged to offer any minimum number of hours, and the worker is generally not obliged to accept the hours offered. Zero-hours workers are still entitled to the National Minimum Wage, paid holiday and rest breaks.

This glossary article about zero-hours contract provides general information about Australian employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

What rights do zero-hours workers have?

The common misconception is that a zero-hours contract means few rights. It does not. The absence of guaranteed hours affects how much work is offered — it does not reduce entitlements for the hours actually worked:

  • National Minimum Wage for every hour worked, including handovers, security checks and travel between sites
  • Paid holiday, accruing at 12.07% of hours worked for irregular-hours workers
  • Rest breaks — 20 minutes on a shift over six hours, 11 hours between working days
  • Protection from discrimination and from unlawful deductions from wages

Exclusivity clauses are unenforceable

A clause preventing a zero-hours worker from working for anyone else cannot be enforced. The logic is straightforward: if you guarantee no hours, you cannot also prevent someone earning elsewhere. Clauses of this kind still appear in old contract templates — they have no effect.

What changes in 2027

The Employment Rights Act 2025 introduces a right for zero-hours and low-hours workers to be offered guaranteed hours reflecting the hours they actually work over a reference period, if they want them. Alongside it come a right to reasonable notice of shifts and a payment where a shift is cancelled, moved or cut short at short notice. All are expected in 2027 and remain subject to consultation.

The target is not genuine flexibility that suits both sides — it is someone working settled full-time hours on a contract that promises nothing. The practical preparation is knowing how many hours your zero-hours staff actually work over a reference period, which most employers currently cannot produce. Our guide to the shift-related changes covers what to measure now. Two guides cover the day-to-day consequences: changing a rota and handling holiday requests.

RosterElf Team

Written by

RosterElf Team

Workforce Management Specialists

The RosterElf team comprises workforce management specialists with deep expertise in Australian employment law, rostering best practices, and payroll compliance. Our team works directly with businesses across hospitality, healthcare, retail, and service industries to develop practical solutions for common workforce challenges.

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