Employment law reform

The government’s huge Employment Rights Bill (ERB) continues to work its way through Parliament. A series of amendments have been tabled since the bill was first introduced, including recently, and it remains the case that some significant changes are on the way for the industry.

Zero and low hours contracts

One area that many employers will be keeping a close eye on is zero hours and low hours contracts. Catering and hospitality industries rank far ahead of any others when it comes to the use of these types of contract. Although such contracts are not going to be banned altogether, their use is due to be more heavily regulated, with the ERB proposing that workers, including agency staff, are to be given the right to request a guaranteed contract reflecting the number of hours they usually work. Recent significant amendments propose additional protections for agency workers to ensure their terms and conditions do not worsen because of a guaranteed hours offer; and where an agency worker accepts a guaranteed hours offer, they will become a worker of the hirer, with the hirer becoming their employer.

These proposed new rules remain complex. Vital detail, crucial for the industry to enable the impact to be fully assessed, has not yet been forthcoming.

Once the detail emerges, employers who workers on zero or low hours contracts will need to ensure that HR and managers understand the key changes. The government is opening its consultation on zero and low hours contracts this Autumn, with the provisions expected to become law in 2027, so there should be plenty of time for employers to seek advice and prepare.

Fire and re-hire

One of the priorities in the government’s initial briefing notes relevant to hospitality businesses included an end to the practice of so-called ‘fire and re-hire’, a practice sometimes used by employers to make wholesale contractual changes to employee contracts.

Recent changes proposed suggest that dismissals will only be ruled ‘automatically unfair’ if an employer seeks to make a so-called ‘restricted variation’, such as seeking to change an employee’s pay, changes their working hours or shifts, or reducing their time off.

Although recent amendments give employers more latitude compared to the original proposals, fire and re-hire is still only going to available in very limited circumstances. Employers should consider whether they need to take any action in relation to staff terms and conditions before the stricter provisions come into force, most likely in October 2026.

Increased workplace protections 

The ERB proposes to introduce raft of additional workplace protections for employees. These include making it unlawful to dismiss a new mother for six months after her return to work after childbirth, except in specific circumstances; strengthening statutory sick pay by removing the lower earnings limit and waiting period plus making it a day one right; alongside parental leave and protection from unfair dismissal. 

The rights of trade unions will also be strengthened, with proposed reforms including simplification of the process of statutory recognition and introduction of rules that will ensure workers and union members have a reasonable right to access a union.

Conclusion

It is widely anticipated that the ERB will receive Royal Assent this Autumn with various public consultations set to launch this year and next. Employers in the industry should keep a watching brief for any further developments and should consider responding to the various upcoming consultations so that the voice of the industry is heard, especially when many of changes are set to have a significant impact.

Q&A

Q: I’ve been informed by the council that my premises license has expired – what do I need to do to get it renewed?

A: An expired licence means that it was time-limited. If so, there is no means of renewing it. A new licence will be required. If they are talking about ‘lapse’ there is a 28-day window from lapse (not the date of notification) in which a licence can be reinstated. After that, a new licence is required. You may need to act very quickly if the latter has happened.

Q: Freshers Week is coming – how can I throw a safe event for Freshers?

A: A decent sized essay can be written on what you should consider, however as a rule of thumb: know your audience. Freshers may drink too much, knowingly or unknowingly, they may be with people they don’t know well, or they may not know the area well. As such, putting in place safeguarding measures to recognise intoxication, when someone might be being harassed (Ask Angela is a good start) and what to do with someone who is alone or intoxicated to safeguard them will at least have you thinking the right way.

This article was first published in Pub & Bar.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at August 2025. Specific advice should be sought for specific cases. For more information see our terms & conditions.