The Employment Rights Act 2025 — what it actually means for your venue

If you run a restaurant, bar, or pub in the UK, the Employment Rights Act 2025 is about to change how you hire, schedule, and manage your team.

The good news? Most of it is common sense. The bad news? It's being rolled out in waves across 2026 and 2027, and nobody's making it easy to figure out what lands when.

So here's the version written for people who actually run venues — not employment lawyers.

What's already live (April 2026)

These are in effect right now:

• Day-one SSP. Every employee qualifies for Statutory Sick Pay from their first day. No more three waiting days. No more lower earnings threshold. If someone's off sick, they're entitled to SSP immediately — including your zero-hours staff.
• SSP rate change. It's now the lower of £123.25/week or 80% of their average weekly earnings. For part-timers earning less than the flat rate, they get the percentage instead.
• Holiday record-keeping. You're now legally required to keep records of annual leave and holiday pay. If you're still tracking this on a spreadsheet... well, there's never been a better time to stop.
• Trade union recognition simplified. Unions no longer need to prove majority support upfront — just a simple majority of those who vote. Not an immediate issue for most independents, but worth knowing.

What's coming in October 2026

• Day-one unfair dismissal. Currently, employees need two years' service before they can claim unfair dismissal. That drops to day one. There'll be a statutory probation period (expected to be 6–9 months) with a lighter-touch process, but the days of "it's fine, they're still in their first two years" are over.
• Third-party harassment liability. You'll be liable if a customer harasses your staff — unless you can prove you took all reasonable steps to prevent it. Not just "reasonable steps." All of them. For late-night venues and bars, this one needs attention.
• Tipping law strengthened. The existing requirement to pass on 100% of tips gets teeth — you'll need to consult with your team on your tipping policy and provide feedback summaries.
• Tribunal time limits doubled. Claims go from a 3-month window to 6 months. More time for employees to bring claims means more reason to get your processes right first time.

What's coming in 2027

These were originally expected in October 2026 but have been pushed back:

• Zero-hours guaranteed hours. If someone regularly works a pattern, you'll need to offer them a contract reflecting those hours. They can decline — it's a right, not an obligation — but you have to make the offer.
• Shift cancellation compensation. Cancel or shorten a shift at short notice? You'll need to pay for it. The details are still being consulted on, but the direction is clear.
• Pregnancy and maternity protections strengthened. Dismissal during pregnancy or within a period after returning from maternity leave will face additional restrictions.
• Bereavement leave. A new statutory right to unpaid bereavement leave.

What should you actually do right now?

You don't need to panic. But you do need to prepare. Here's a realistic priority list:

1. Get your sick pay sorted. The new SSP rules are live now. Make sure your payroll reflects day-one eligibility and the new rate calculation.
2. Start keeping proper holiday records. It's a legal requirement as of April 2026. If you're on Suparota, this is already handled. If you're not — this is a good reason to be.
3. Review your harassment policy. October's third-party liability changes are serious. Train your managers, document your procedures, and think about how you handle incidents involving customers.
4. Tighten up your dismissal process. Day-one unfair dismissal rights mean every termination needs a fair reason and a documented process — even in the first few months. Start building that habit now.
5. Watch the zero-hours space. The guaranteed hours rules are coming in 2027. If you rely heavily on zero-hours contracts, start thinking about what a guaranteed-hours offer would look like for your regulars.

The bottom line

Most of these changes are things good operators already do — pay sick staff fairly, keep proper records, don't tolerate harassment, don't fire people without reason. The difference is that now there's a legal framework behind it, and a new Fair Work Agency to enforce it.

If you're already running a decent operation, you'll be fine. If you're still winging it with spreadsheets and handshake contracts — October is closer than you think.