What hospitality employers need to know about the proposed employment law changes

The Government’s long-awaited roadmap for implementing measures from the Employment Rights Bill has landed and it’s a chunky read. But we’ve done the legwork for you and picked out a few of the key updates that are most important and relevant to hospitality businesses.

1. Day One Unfair Dismissal Rights – Now Not Until 2027

There’s been a lot of discussion (and confusion) about unfair dismissal rights from day one of employment. To be clear, this change is not coming into force until at least 2027.

That gives hospitality businesses time to prepare. But don’t be lulled into inaction. Now is the time to strengthen your probationary processes.

Read our previous blog: Understanding the Changes to Unfair Dismissal in Hospitality

2. Zero Hours Contracts and Predictable Working – Delayed to 2027

Another key topic for hospitality employers, zero hours contracts and the right to request predictable working patterns, is also being pushed back to 2027.

This delay gives you breathing space to prepare. It’s wise to start revising your approach to predictable working hours, especially if you currently rely on zero contracts.

More on this in our earlier post: Zero Hours Contracts Update and Checklist

3. Tipping Laws to Tighten – Coming October 2026

This one is especially relevant for our sector. From October 2026, new legislation will require consultation with workers to ensure fair tip distribution.

If you already operate a Tronc system, this might not feel like a big shift, but the law will now demand evidence of consultation.

Recap our advice on tip allocation: How to Run a Fair and Legal Tronc System

4. New Duty to Prevent Sexual Harassment – Coming October 2026

From October 2026, employers will face a new, higher threshold when it comes to preventing sexual harassment at work.

This goes beyond the current requirement (introduced in 2024) and introduces a legal duty to take all reasonable steps to prevent harassment, raising the bar significantly.

For hospitality businesses, where frontline teams interact closely with customers, this will require a more robust, proactive approach. That means:

  • Embedding training into onboarding and refresher processes
  • Making zero-tolerance policies visible and enforceable
  • Supporting staff to speak up and take action when incidents occur

The message is clear: it’s not enough to react to complaints. You must show that you’ve done everything reasonably possible to prevent harassment in the first place.

Find out what steps to take now: Preventing Sexual Harassment in the Workplace

What Should You Do Now?

  1. Don’t wait for 2027 – Use the extra time to build stronger foundations in probation, contracts and tip management.
  2. Communicate clearly – Reassure your team that you’re on top of these changes and committed to a fair, respectful workplace.
  3. Stay informed – We’ll keep you updated with practical, hospitality-specific guidance as new details emerge.

We believe employment problems shouldn’t stall your success. These upcoming changes are a chance to get ahead, not just stay compliant, but build a workplace where great people want to stay.

In the meantime take a look at Employment Law Proposed Changes Timeline – Dates at a Glance

If you’d like help reviewing your contracts, probation policies, or prevention of sexual harassment training, please get in touch.