By Angela Da Silva, HR Consultant & Founder of ‘Your People, Our Team Ltd’
Hospitality has always rolled with the punches. New challenges arrive, the industry adapts, and service carries on.
With the Employment Rights Act at the door (or on the pass), some operators are understandably asking: are we about to get fined?
The short answer is no! Not if you know what’s coming and you prepare for it.
Here are some of the key changes and what they mean in practice for hospitality businesses.
Sick Pay – removal of the three unpaid waiting days
What’s changing?
From April 2026, eligible employees will receive Statutory Sick Pay from day one of sickness. Eligibility will also extend to those earning below the lower earnings limit.
What this means
When an employee calls in sick, the absence needs to be properly recorded rather than simply removing them from the rota. This includes staff who may only work occasional shifts.
What to do now
Make sure absences are recorded accurately so sickness can be processed through payroll
Keep clear records of hours worked
Update sickness policies and ensure managers understand the process
Third-party harassment
What’s changing?
From October 2026, employers will be liable if they haven’t taken all reasonable steps to prevent harassment of staff by third parties – including customers, suppliers or contractors.
What this means
Employees could bring a tribunal claim if their employer hasn’t taken steps to prevent abuse from guests or others interacting with the team.
How to prepare
Identify risk points where harassment could occur and how you can mitigate those risks
Introduce clear policies and staff training
Display signage making it clear abuse of staff will not be tolerated
Unfair dismissal
What’s changing?
From January 2027, the qualifying period to claim unfair dismissal will reduce from two years to six months.
What this means
Employees dismissed after six months’ service could bring a tribunal claim if proper procedures haven’t been followed.
How to prepare
Review probationary periods (especially those that are 6 months)
Hold regular reviews during probation
Document feedback and performance discussions Guaranteed hours for zero-hours workers
What’s changing?
Expected in 2027, employers will need to offer guaranteed hours to zero (or low) hours workers based on their average hours over a specific reference period.
What this means
A fixed number of hours on employment contracts, that align with people’s average working hours, for those that want them. Some staff will want that stability. Others will prefer the flexibility. The key is understanding what your team actually wants.
How to prepare
Good data on hours worked
Clear communication with your team. Test the water with them now.
You don’t need to worry about getting fined. You just need to understand what’s coming. With clear processes, good records and open communication, hospitality businesses can reduce risk while building stronger, more engaged teams.