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UKHospitality has welcomed the publication of a clear timeline for implementing the Employment Rights Bill, while warning that changes to sick pay and other early measures could bring significant cost pressures for businesses.
The Department for Business and Trade has confirmed the following rollout schedule:
- April 2026: Sick pay for up to 1.3 million of the lowest earners and day one rights to parental and paternity leave will be introduced for the first time. A package of trade union measures including simplifying the trade union recognition process.
- October 2026: Tightened tipping rules and a strengthened duty on employers to prevent sexual harassment.
- 2027: New rights to guaranteed hours, enhanced flexible working provisions, and changes to unfair dismissal rules.
UKHospitality emphasised the need to use these timelines to constructively engage with businesses on the policy detail.
Some of the first changes to come into force in April 2026, particularly Statutory Sick Pay, could be a significant cost for businesses.
UKH said the Government must take into consideration the cumulative cost burden facing the sector during consultation periods, particularly on the back of the £3.4bn additional annual cost that hit the sector in April.
Kate Nicholls, chief executive of UKHospitality, said: “Clear and precise timelines on when aspects of this legislation, and the processes to deliver them, will come into force is essential, and it was important that the Government embark on providing clarity.
“There are substantial and expensive changes for businesses in the Employment Rights Bill and it’s right that the Government is using the appropriate implementation periods for the most complex issues for hospitality, in order to get the details right for both businesses and workers.
She added: “We have been clear with the Government that the changes regarding guaranteed hours and predictability of shifts will be the most complex for hospitality businesses, and therefore necessitates a significant implementation period. It’s important that it has acted on our concerns and it must now use this time to work with businesses on an appropriate policy framework and clear guidance.
“Businesses are understandably wary about the cost and complexity of the more immediate changes in the Employment Rights Bill, particularly alongside increases to NICs, employment costs and business rates. Hospitality businesses have absolutely no more capacity to absorb costs and the Government must not increase the sector’s cost burden once again.”
