Employment Rights Bill timeline – how will it impact hospitality?

With 35 separate measures being introduced over the next two years, the Employment Rights Act represents the most significant shift in employment law in a generation.

 

While some elements have already come into force, including the repeal of the Strikes (Minimum Service Levels) Act 2023 and much of the Trade Union Act 2016, making it easier for workers to strike and strengthening protections against dismissal for taking industrial action, the bulk of the changes will begin from 6 April and roll out through to 2027.

 

Here, we break down the key measures coming into effect this month.

 

From 6 April 2026

Statutory sick pay

Statutory sick pay will be available from the first day of illness, rather than the fourth, with the lower earnings limit also removed.

 

Speaking at The Caterer’s Breakfast Briefing Live last November, where industry experts explored how the legislation will reshape hospitality employment practices, chief people officer at RedCat Hospitality Lee Melton said the introduction of day-one statutory sick pay would present challenges for employers, particularly at a time of intense cost pressures. However, he added that it is ultimately the right move for conscientious operators.

 

‘Day one’ unpaid parental leave and paternity leave

Hospitality has long been seen as one of the least accommodating sectors for time-pressed parents. Shift patterns, limited opportunities for home working and long hours continue to create structural barriers for those balancing work and family life.

 

According to a national survey by charity Working Families in Hospitality, one-third of parents working in hospitality and events management said childcare challenges had forced them to reduce hours or miss shifts. New measures aim to address this, giving parents the right to up to 18 weeks of unpaid leave per child, available from day one of employment and usable up to the child’s 18th birthday.

 

Paternity leave will also become a day-one right, removing the current 26-week service requirement.

 

Panellists at The Caterer’s Breakfast Briefing Live agreed that such changes, alongside other day-one rights, including protection from unfair dismissal, may present some challenges, but the reforms could ultimately strengthen the sector.

 

Menopause and gender pay gap action plans

Large employers (with 250 or more staff) are being encouraged to publish menopause action plans from 6 April, with the requirement set to become mandatory from spring 2027. Support strategies could include clear menopause policies, flexible working options, reasonable adjustments and greater training and awareness around symptoms.

 

Some operators are already being recognised for their approach. Care catering company Signature Dining, which ranked among the top six in the 2025 Best Places to Work in Hospitality, was highlighted for its support around menopause, while guest services provider Lexington Reception Services has relaunched a policy designed to raise awareness across its workforce.

 

The Act also encourages the voluntary adoption of action plans to address gender pay gaps ahead of mandatory requirements in 2027. The aim is to move beyond reporting towards more robust, evidence-based action that can accelerate progress in closing the gap.

 

Collective redundancy protective

The measure will double the maximum ‘protective award’ for failure to consult in collective redundancy, increasing it from 90 days’ pay to 180 days’ pay.

 

A package of trade union measures

This includes simplifying the trade union recognition process and electronic and workplace balloting.

 

October 2026

Tipping law The law will be strengthened by mandating consultation with workers to ensure fairer tip allocation.

 

Sexual harassment Employers will be required to take “all reasonable steps” to prevent sexual harassment of their employees with protection extended to all work environments, including public-facing roles.

 

Trade unions A package of trade union measures will be introduced, including new rights and protections for trade union representatives, extending protections against detriments for taking industrial action and strengthening trade unions’ right of access.

 

2027

Sexual harassment Further harassment protections will come into force, determining whether an employer has taken “all reasonable steps” to prevent sexual harassment and to provide clearer guidance and stronger enforcement against harassment.

 

Zero hours contracts Zero hours contracts will end, to provide workers with stable hours and predictable income.

 

Unfair dismissal Right to protection from unfair dismissal from day one.

 

Flexible working Improved access to flexible working.

 

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