The Truth About Zero-Hours Contracts and Redundancy
A zero-hours contract does not remove your employment rights. What determines your rights is your employment status and your length of continuous service — not how predictable your working pattern is.
Under the Employment Rights Act 1996, if you have worked for the same employer continuously for two or more years, you are entitled to:
Statutory redundancy pay Notice pay (based on your average earnings) Accrued holiday pay A fair redundancy consultation process The right to appeal a redundancy decision The key word is continuous. You do not need to have worked every week. Short gaps that are recognised in your contract, or gaps caused by illness or agreed leave, do not necessarily break continuity. The question is whether the employment relationship remained intact.
How Is Redundancy Pay Calculated for Zero-Hours Workers?
Statutory redundancy pay is calculated using three factors: your age, your length of continuous service (up to 20 years), and your weekly pay.
For zero-hours workers, the weekly pay figure is calculated using the average of your earnings over the previous 12 weeks in which you actually worked and were paid. This protects workers whose hours fluctuate from week to week.
From April 2025, the weekly pay cap for statutory redundancy purposes is £643. If your average weekly pay is below this, your full average earnings are used.
"I was told I wasn't entitled to anything because I was zero-hours," said Jade, a healthcare support worker made redundant after three years. "But my average pay over 12 weeks came to just under £400 a week. I was owed over £2,400 in redundancy pay alone — and my employer only paid it after I put it in writing."
Does Irregular Hours Affect Your Entitlement?
No. The irregularity of your hours does not disqualify you from redundancy pay. What matters is whether the employment was continuous and whether you had worked for the same employer for two or more years.
According to analysis by the TUC, over 1 million workers in the UK are on zero-hours contracts. Research suggests that a significant proportion of those workers do not know their redundancy rights, and many never claim pay they are legally owed.
Can You Be Made Redundant on a Zero-Hours Contract?
Yes — and when you are, your employer must still follow a fair process. The ACAS Code of Practice on Dismissal and Redundancy applies regardless of your contract type. A fair redundancy process includes:
Written notification that your role is at risk, with reasons A genuine individual consultation — not a single meeting with a pre-decided outcome The right to be accompanied at meetings Consideration of any alternatives to redundancy you put forward A written outcome and the right to appeal If your employer skips these steps or treats the process as a formality, the redundancy may be unfair — and an unfair dismissal claim can be brought at an Employment Tribunal.
What If You Think Your Dismissal Was Unfair?
If you believe you were dismissed unfairly — whether through a flawed process, discriminatory selection, or because your employer was trying to avoid paying statutory redundancy — you may have a claim.
The time limit is strict: three months minus one day from the date your employment ended. Before making a claim, you must first contact ACAS to begin Early Conciliation, which can slightly extend the window and may resolve the matter without a tribunal hearing.
Notice Pay, Holiday Pay, and Other Entitlements
Beyond redundancy pay, check that you have been paid for:
Notice pay — your statutory minimum notice based on length of service, or your contractual notice if higher, calculated using your 12-week average earnings Accrued holiday pay — any unused annual leave at the point your employment ends Unpaid wages — any shifts worked but not yet paid These amounts are owed regardless of whether your redundancy pay entitlement has been triggered.
Your Action Plan
Confirm you have two or more years of continuous service — check your start date and any contract documents Calculate your 12-week average weekly earnings using your payslips Request your redundancy pay calculation in writing from your employer Check your notice pay, accrued holiday, and any unpaid wages separately If the process was unfair or you were dismissed without a fair consultation, note the date of dismissal — your tribunal deadline starts from that date Download your free redundancy action plan at 👉 https://myredundancyrights.co.uk/action-plan https://myredundancyrights.co.uk/my-rights 👉 https://myredundancyrights.co.uk/legality-checker Being on a zero-hours contract does not mean being without rights. Know what you are owed — and claim it.