Comparison · Employment · 2026/27
Zero-Hours Contract vs Fixed-Term Contract UK 2026/27
A zero-hours contract offers flexibility with no guaranteed hours. A fixed-term contract guarantees set hours for a defined period. This 2026/27 guide compares income predictability, rights and which suits different circumstances.
Key facts -- 2026/27
- • Zero-hours: no minimum guaranteed hours
- • Fixed-term: guaranteed hours for a defined period
- • Fixed-term to permanent right: after 4+ years of successive contracts
- • Holiday entitlement (both): 5.6 weeks pro-rata
- • Unfair dismissal protection: typically requires 2 years' continuous service
- • Statutory rights: minimum wage and holiday pay apply to both
Hours and Income Certainty
The core distinction is guaranteed hours. A fixed-term contract fixes your working pattern for the contract's duration, giving predictable income much like a permanent role, but with a defined end date. A zero-hours contract offers no such guarantee -- income depends entirely on shifts offered and accepted.
Employment law reform has increasingly focused on giving zero-hours workers with a regular pattern the right to request guaranteed hours reflecting that pattern, narrowing (though not eliminating) the predictability gap between the two contract types.
Worked Example: Monthly Income Variability
| Contract type | Typical monthly hours | Income predictability |
|---|---|---|
| Fixed-term (30 hrs/week) | ~130 hours, fixed | High |
| Zero-hours (variable) | 40-160 hours, varies | Low |
Illustrative only -- actual hours vary by sector and employer. Use the minimum wage calculator to check your pay meets statutory requirements.
Side-by-Side Comparison
| Factor | Zero-hours | Fixed-term |
|---|---|---|
| Guaranteed hours | None | Fixed for contract term |
| Flexibility to decline work | Yes, generally | No, fixed schedule |
| Mortgage/credit application ease | Harder | Easier |
| Contract end | Can continue indefinitely | Fixed end date |
| Best for | Flexibility seekers | Income certainty seekers |