Embracing new employment law changes

Amanda Trewhella, employment director at law firm Freeths, examines proposed employment law changes and how operators can start preparing now

Last year, saw the introduction of The Employment Rights Bill, bringing a number of changes to areas such as unfair dismissal, zero-hour contracts and flexible working. The Government will draft regulations for each proposed measure and these will need to pass through Parliament before coming into force, therefore, it is unlikely that any of these measures will come in before Autumn 2026. However, fish and chip shop owners should take the proposed changes into account when forecasting and planning for the future.

Unfair dismissal

The biggest headlines include the shift to a day one unfair dismissal right and the proposed statutory probationary period of six to nine months. Employees currently need two years’ service before they can claim unfair dismissal. It is likely that there will be a process to follow prior to dismissal in the probationary period, with a period of performance management where relevant. After that a strict process will need to be followed to ensure a fair dismissal. This will be a change in mindset for employers wishing to dismiss an employee during the first two years of employment, who will need to ensure that managers receive appropriate training once the detail is clear and in advance of the changes being introduced (likely to be Autumn 2026).

Zero-hour contracts

Employers will be required to offer staff a contract with guaranteed hours based on hours worked during an initial reference period. There will also be a requirement to give staff more notice of their shifts and to compensate them for any last-minute cancellation of shifts. Whilst this will give staff more certainty it will require careful planning and costing by operators.

Flexible working

Further changes to flexible working requiring employers to justify decisions, not just cite reasons. Currently employers can refuse a request for flexible working for one of eight statutory reasons. When this change is introduced, employers will need to justify the reason given.

Sexual harassment 

The duty on employers to prevent sexual harassment has been in force since 26th October 2024. Employers are required to take reasonable steps to prevent sexual harassment in the workplace, which includes developing an effective harassment policy, engaging and training staff on preventing harassment, carrying out a risk assessment, having an effective reporting mechanism for staff and monitoring complaints that are received. The Employment Rights Bill, however, includes the following additions:

– A duty to take all reasonable steps to prevent harassment. This is a higher duty than the current duty to take reasonable steps requiring employers to do everything possible to prevent harassment.

– Employers will be liable for harassment by third parties – e.g. suppliers, contractors and customers. This will represent a real change and particular challenge for fish and chip shop sectors, as it is clearly difficult to control the acts of others. When reviewing policies to comply with the current requirements you should bear in mind that liability for third party acts might be imposed in future and should look at where the risks are in your risk assessment. One crucial factor will be how any complaints received are dealt with. It will not be enough to simply have a policy. All staff and stakeholders will need to be engaged, and you will need to demonstrate zero tolerance of harassment as an organisation.