Employment Law in 2026 and Beyond

Why Leadership Behaviour Matters More Than Legislative Detail

If you work in HR or lead people in hospitality, it can feel as though employment law is everywhere. Timelines are shared weekly, commentary is constant, and predictions of disruption are hard to avoid.

Much of what is circulating is technically correct. Very little of it, however, helps leaders understand what actually needs to change in practice.

The Employment Rights Act 2025 is not designed to catch employers out. It raises expectations around how people are treated early in employment, how consistently decisions are made, and how confidently organisations prevent issues rather than reacting once they escalate.

Hospitality experiences leadership immediately. Teams feel inconsistency quickly, and guests notice culture instantly. Weak practice surfaces earlier and more visibly than in many other sectors.

That means the real risk is not misunderstanding the law, but failing to apply it consistently and confidently.

Why This Legislation Exists in the First Place

The Employment Rights Act 2025 sits behind a broader ambition to modernise employment protections and rebuild trust at work. The focus is on fairness, dignity, and long-term economic stability, not short-term compliance fixes.

The way the reforms are being introduced matters. A phased implementation across 2026 and 2027 gives organisations time to prepare properly rather than react defensively.

Seen this way, the Act is not a cliff-edge. It is a shift in expectations, particularly around early fairness, transparency, and leadership accountability.

What Actually Changed Straight Away

The Act received Royal Assent on 18 December 2025. Only one provision took effect immediately, relating to minimum service-level rules during strike action in certain public services.

For hospitality employers, this has little practical impact. Most operational changes begin through 2026, not overnight.

April 2026: Where Cost, Capability, and Consistency Intersect

April 2026 is the first point where many organisations feel tangible change. Minimum wage rates increase across all age bands, alongside rises to statutory family-related payments and Statutory Sick Pay.

While these changes are familiar, they often create pressure beneath the surface. When pay structures are not reviewed carefully, supervisors and junior managers can feel their experience and responsibility are no longer properly recognised. That sense of being squeezed is a quiet but powerful driver of disengagement.

Key areas where pressure shows up include:

• Compression between frontline roles and junior management pay

• Increased expectation on managers without corresponding clarity or support

• Greater scrutiny of how pay decisions are explained to teams

A more significant shift comes with sickness absence. From April 2026, Statutory Sick Pay becomes payable from the first day of sickness absence, with waiting days and the earnings threshold removed for SSP only.

What changes in practice is less about cost and more about behaviour:

• Absence can no longer be informally overlooked in its early stages

• Return-to-work conversations become essential, not optional

• Inconsistency between managers becomes visible very quickly

What does not change is just as important. Earnings thresholds remain in place for family-related pay, and SSP does not become more generous for everyone. Some employees earning just above the previous threshold may receive less than they do now.

Handled well, the impact is manageable. Handled poorly, it exposes gaps in leadership confidence and consistency.

April also introduces several further changes, including day-one rights to certain types of leave, stronger protections for whistleblowing, and the establishment of the Fair Work Agency.

Taken together, these raise expectations around early fairness, transparency, and timely response.

October 2026: Where Leadership Behaviour Is Tested

The October 2026 reforms focus less on policies and more on how leaders behave day to day.

Restrictions on fire-and-rehire practices require clearer consultation and more careful decision-making. Duties to prevent sexual harassment become more explicit, and employers become liable for third-party harassment unless reasonable steps are taken.

In hospitality, this is not theoretical. Guest behaviour is part of everyday reality, which makes confident managers, clear escalation routes, and visible senior support essential.

Other changes, such as extended tribunal time limits and strengthened trade union access rights, expose organisations that delay decisions or leave managers unsupported.

Clearing Up Common Misunderstandings

Several myths continue to drive unnecessary anxiety.

• Zero-hour contracts are not being banned, but poor scheduling becomes more costly

• Flexible working still requires a request and can be refused with clear reasons

• Harassment reform focuses on prevention and confidence, not banning workplace culture

Understanding these distinctions allows leaders to plan proportionately rather than defensively.

2027: Where Early Decisions Really Count

From January 2027, the qualifying service for unfair dismissal reduces to six months, and compensation caps are expected to be removed.

For hospitality, this brings recruitment, onboarding, and probation into sharper focus. Six-month probation periods leave little room for drifting performance or vague feedback. Early conversations and clear expectations become critical.

Other expected reforms continue the same theme, with greater emphasis on early clarity, fair treatment, and better decision-making.

What Strong Organisations Are Focusing On Now

The organisations best placed for the next two years are not doing anything dramatic. They are focusing on the basics, done well.

• Consistency across managers and sites

• Clear expectations from the start

• Early intervention rather than delay

• This is not about thicker policy folders. It is about leadership quality and follow-through.

In a Nutshell

• The legislation raises expectations rather than creating traps

• Leadership behaviour determines the real impact

• Early clarity reduces long-term risk

A Closing Perspective

Ultimately, this is not really about employment law. It is about how decisions are made under pressure, how people are treated in their first months, and whether leaders are willing to act early rather than hope issues resolve themselves.

Organisations that already lead with clarity, fairness, and consistency will find the changes demanding at times, but not destabilising. Those who rely on ambiguity or avoidance will feel the pressure far more sharply.

The difference, as ever, is not the legislation. It is the quality of leadership behind it.

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