Gemma McMillan

As either an employer or an employee, our rights relating to the world of work are fundamentally shifting. We are all familiar with the Employment Rights Act of 1996, but nearly thirty years later, some significant changes are being discussed in Parliament right now.

If you are an employer, you would be strongly encouraged to research the new legislation and ensure you are compliant with it. Look to your HR team to advise you on any preparatory changes that need to be made. The consequences for non-compliance could be severe.

But what if you have no HR team?

Let’s take a look at what the new law may mean for a small local business:

• You may have to pay compensation to your staff for cancelled or curtailed shifts.
• Zero hours contracts will not be allowed, unless your staff member specifically requests it.
• National minimum wage is changing to allow everyone over the age of 17 to be on the same rate.
• Do you take tips? You will need to speak to your staff about how tips are dealt with – they must have a say.
• Unfair dismissal will be a day-one right. That means you may not simply be able to dismiss someone because it is “not working out”.  You will have to ensure that you have followed the correct dismissal procedure in order to minimise the danger of a claim being made against you at an employment tribunal.
• You will have an active duty to take all reasonable steps to prevent sexual harassment in the workplace.  This includes harassment from clients and outside parties. Do your policies hold up? Will they protect your staff?
• There are also significant changes to bereavement leave, parental leave, sick pay and flexible working, and you will need to be aware of these.

These changes are likely to be introduced from April 2026. Therefore, you do have some time to prepare.

Make sure you take the time to speak to an expert to ensure that your workplace is future-proof. Litigation is ultimately a stressful, time-consuming, and costly process for any employer, and if you can take steps to minimise any such action, now is the time to act.