A government crackdown on zero-hours contracts could cost businesses up to £2.9m a year, according to government analysis of upcoming employment reforms.

The changes are expected to have a significant impact on hospitality and retail businesses, many of which rely on zero-hours contracts to respond quickly to changing demand and manage staffing levels.

While some workers value the flexibility offered by zero-hours contracts, others are likely to welcome the greater certainty that guaranteed hours could provide.

The reforms are also expected to place greater emphasis on predictable and transparent workforce scheduling. Businesses may need to publish rotas further in advance, understand employee availability and shift preferences, and provide straightforward ways for employees to manage or swap shifts.

For hospitality operators working with tight margins, effective workforce planning and scheduling will become increasingly important as businesses adapt to the changing employment landscape.