2025 Review: People, Policy & Planning Ahead in Hospitality

As we approach the end of 2025, it’s time to take a breath and reflect on the year just gone.

For many in the hospitality industry, 2025 has been a year of expectation, frustration and recalibration. From widely publicised employment law changes to the everyday people challenges that never went away, there’s been no shortage of HR headlines and some scaremongering too.

At Frances Gillespie HR, we’ve spent the year helping hotels, restaurants, pub groups and coffee chains make sense of it all.

So, what actually changed? What didn’t? And what should you focus on as we head into 2026?

What We Thought Would Happen vs. What Actually Did

Let’s start with the employment law updates that sparked the most conversation:

1. Day-One Unfair Dismissal Rights, Statutory Probation Periods & Political Pressure

At the start of the year, there were urgent headlines about dramatic changes to unfair dismissal laws. Many operators worried that the ability to dismiss employees within the first two years of service would disappear overnight.

In reality? The two-year qualifying period is set to be repealed but not before Autumn 2026. The proposal includes a new nine-month statutory probation period, during which a lighter-touch dismissal process will apply. For now, nothing has changed, but you should start preparing your probation processes to be more structured and well-documented.

2. Zero-Hour Contracts

The proposed restriction or even ban on exploitative zero-hour contracts has been widely discussed but remains under government review. No new legislation has been enacted in 2025.

Employers should prepare for a shift away from one-sided flexibility in zero hours contracts, ensuring fairness for both employer and employee.

3. Preventing Sexual Harassment

One area that has changed: as of October 2024, the law now mandates that all employers take proactive steps to prevent sexual harassment. This includes clear policies, training, and demonstrating a zero-tolerance approach across the business.

Most businesses have made progress towards compliance during 2025.

For those who haven’t acted yet, ensure it’s on your urgent To-Do list. And if you require support, please get in touch.

4. VAT Campaigns

The pressure on the industry is undeniable. A recent petition with over 5,000 signatures calls for a VAT cut for hospitality to stem the tide of closures. (See the petition here)

For a sector that has seen 11 licensed premises closing every week over the last year (source), the call for support is louder than ever.

Real People Problems: What We’ve Been Called In For

While the headlines told one story, the real work of 2025 was often much more personal:

  • Grievances: We saw a sharp increase in grievance cases this year, especially in smaller businesses where there isn’t an objective person to lead the process. Our June blog tackled this and remains a must-read for operators without in-house HR support.
  • Contract Confusion: With changes being talked about but not yet implemented, we helped many clients double-check and revise their employee contracts to stay aligned with both current law and future expectations.
  • Leadership Fatigue: The emotional toll of managing uncertainty is real. We supported many GMs and Ops Managers feeling stuck between frontline pressures and back-office policies.

From Firefighting to Forward Thinking

Despite the challenges, there’s been plenty to feel hopeful about. In fact, some of the best work we did this year was helping clients switch from reactive to proactive:

  • In September, we introduced the Strategic People Plan for hospitality businesses: a roadmap to make people planning part of your growth strategy.
  • In May, we explored the power of a Growth Mindset and how a simple Personal Development Plan (PDP) can transform not just individuals, but whole teams.

Together, these two blogs (see links)  form a strong foundation for any operator looking to start 2026 on the front foot.

Frances’s Top 3 HR Priorities for 2026

1. Review and Strengthen Probation Processes

Start aligning your practices with the proposed statutory nine-month model. Structure matters.

2. Double Down on Training

Prevention of sexual harassment is now a legal requirement. Make sure your managers and employees understand their responsibilities.

3. Put People Planning on the Board Agenda

Don’t just deal with issues when they arise. Build a plan that supports retention, development, and culture all year round.

Looking Ahead

Hospitality is hard. We know that. But it’s also worth it. For every story of closure, there are stories of resilience, creativity, and comeback. If you’re ready to start planning 2026 with clarity and confidence, we’re here to help.

Explore Your HR Hub, revisit our most-read blogs from the year, or just book a call.

We’ll help you keep things clear, compliant, and commercial, so you can focus on the part you love: delivering brilliant hospitality.

Blog Archive & Helpful Links:

• Feb: Zero-Hour Contracts: Update and Checklist
• Mar: Changes to Unfair Dismissal
• May: Cultivating a Growth Mindset in Hospitality
• Jun: Untangling Workplace Grievances
• Jul: Preventing Sexual Harassment at Work
• Sep: Creating a Strategic People Plan
• Oct: Essential HR Skills for Hospitality Managers

If you have any questions about any of the topics in this blog or would like to discuss how Frances Gillespie HR can support you, please call us on 020 4534 3456 or send us a message.