The reforms arriving in April 2026 under the Employment Rights Bill represent one of the biggest shifts in UK employment law in decades. With tight margins, high turnover, and a workforce that often includes students, part‑timers, and seasonal staff, these changes will land differently in hospitality than in many other industries. 

So, here’s what operators need to know – and what to start preparing for now.

Day One Family Leave Rights: No More Waiting Periods

From April 2026, both paternity leave and ordinary parental leave become day one rights. That means: 

• No 26‑week qualifying period for paternity leave 

• No one‑year service requirement for ordinary parental leave 

For hospitality, where many employees are new starters or seasonal hires, this is a significant shift. Operators will need clear processes for handling requests from employees who may have only just joined the team. 

Statutory Sick Pay Reform: Payable from Day One 

SSP will now be payable from the first day of sickness, and the lower earnings limit is being removed. This means: 

• More team members will qualify 

• Absence costs may increase 

• Managers will need to record sickness accurately from the very first shift 

In addition, the SSP rate will be the lower of either 80% of an employee’s average weekly earnings or the flat rate of £123.85. Because the lower earnings limit is being removed, more employees with weekly earnings below the fixed rate will now receive 80% of their average weekly earnings rather than the full flat rate. This is likely to be particularly relevant in hospitality, where many workers have variable or lower weekly earnings. 

Given hospitality’s reliance on flexible and part‑time workers, this reform will likely have a noticeable operational and financial impact.

Higher Penalties for Collective Redundancy Failures

The maximum protective award for failing to consult properly in a collective redundancy situation will double from 90 days’ pay to 180 days’ pay. 

While collective redundancies are less common in hospitality than in some sectors, operators with multiple sites or large teams must take consultation duties seriously. The financial risk of getting it wrong is now significantly higher. 

Hospitality operators can trigger collective redundancy rules more easily than expected, especially when: 

• Closing a site 

• Restructuring across multiple venues 

• Outsourcing functions like housekeeping or kitchen operations 

• Seasonal staffing changes in larger businesses 

Even if redundancies are rare, knowing the threshold helps avoid accidental non‑compliance.

Stronger Whistleblowing Protections

Sexual harassment will become a qualifying disclosure under whistleblowing law. This gives workers stronger protection from detriment or unfair dismissal when reporting concerns. 

For hospitality – where young workers, late‑night environments, and customer‑facing roles can increase vulnerability, this change reinforces the need for: 

• Clear reporting channels 

• Zero‑tolerance policies 

• Properly trained managers

Trade Union and Worker Rights: A More Accessible System

Several reforms will make union engagement more straightforward. The changes include simplified union recognition processes, electronic voting for ballots, and a new Fair Work Agency to enforce rights such as holiday pay and sick pay. 

Hospitality businesses often deal with: 

• High turnover 

• Young workers 

• Multiple sites 

• Varied shift patterns 

These factors make union processes more complex than in other sectors. 

The simplification reforms mean: 

• Less admin when dealing with unions 

• Clearer rules on what you must do 

• Faster processes (no long postal ballots) 

• More transparency for both sides 

• Fewer disputes about technicalities 

Operators should expect more structured interactions with unions and potentially more scrutiny around compliance.

Gender Pay and Menopause Action Plans 

Employers will be encouraged to create action plans on: 

• Gender pay gaps 

• Menopause support 

These will be voluntary at first, but mandatory requirements are expected from 2027. Hospitality businesses with diverse, multi‑generational teams may find early adoption beneficial for retention and culture. 

How These Changes Fit into the Bigger Picture 

April 2026 is just the first phase of the Employment Rights Bill rollout. Further reforms, including fire‑and‑rehire restrictions, extended tribunal time limits, and new harassment prevention duties are scheduled for late 2026 and 2027. 

This is a multi‑year transformation of UK employment law, and hospitality operators who prepare early will be in the strongest position.

What Hospitality Employers Should Do Now 

To get ahead of the April 2026 changes, operators should: 

• Update contracts, handbooks, and policies 

• Train managers on new day‑one rights and SSP rules 

• Review redundancy processes and consultation frameworks 

• Strengthen whistleblowing and harassment reporting procedures 

• Begin conversations with union reps where relevant 

The earlier these steps are taken, the smoother the transition will be. 

How S4labour Can Support 

S4labour supports operators by keeping workforce information accurate and accessible, helping them navigate changing employment requirements with confidence.

The only change being added into S4labour at this stage is the updated SSP functionality. If you’re a customer, we’ll be in touch over the next couple of months to explain exactly how S4labour will support you through these changes. 

Many ops leaders assume their managers are forecasting sales, planning labour to match demand, and reviewing performance daily. But the data tells a different story: 

• Only 46% of managers forecast sales on a day-by-day basis
• 38% of managers don’t deploy their teams to maximise sales
• 41% of managers don’t stagger start and finish times or deduct time for breaks
• 26% don’t formalise their shift allocation when writing their rota
• 15% of managers don’t use quiet periods productively
• 54% do not review sales forecasts and labour schedules daily
• 15% of managers don’t accurately track their hours for payroll

Assuming your managers are doing the right things can be costly. Every missed forecast, every misaligned shift, every unreviewed rota contributes to profit leakage. The gap between the rota and reality is where money is lost — and where service suffers. 

“You can’t manage what you can’t see.” As an ops team, you need tools and processes that give you real-time visibility into what’s happening on the floor. That means: 

• Seeing how labour is deployed hour-by-hour
• Understanding how sales forecasts align with staffing
• Identifying where shifts are overstaffed or underutilised

 Ask yourself: “Do I know what habits my managers are practicing every day?”

The truth is, excellence isn’t built on assumptions – it’s built on habits. That’s why we’ve developed our Operational Excellence Programme: a structured way to benchmark your venues, embed best practices, and turn good intentions into daily behaviours. By engaging with the programme, you’ll be able to:

 

• Gain clear visibility into the habits shaping performance across your venues

• Identify where good habits are strong – and where bad habits exist

• Equip your managers with the tools and training to build consistency across every shift

Peach Pubs began in 2002 with a simple vision: to create gastro pubs that combined fantastic food with outstanding service. Starting with a single tenancy – the Rose & Crown – the founders wanted to build a scalable business that felt personal and welcoming. 

Hamish admits he wasn’t a typical industry insider. “I pulled my first pint at 38,” he says. But his passion for service and culture drove the business forward. From day one, Peach focused on shared ownership, giving general managers equity and encouraging every team member to feel like they owned the pub. This sense of pride became the foundation for exceptional guest experiences. 

Many businesses talk about values, but few make them stick. Peach Pubs embedded its purpose—“Making Life Peachy”—into every aspect of operations. For 15 years, the team lived by a set of values that weren’t just words on a wall. They were front-of-mind every day. Hamish explains: “We taught ourselves to create a structure around the values so people could remember and live them. We even worked with a world-class memory champion to help staff recall them.” 

This commitment meant that even short-term team members could recite the values and share stories about how they applied them. The result? Guests walked into a Peach pub and felt instantly welcomed—because the team knew why they were there and what they stood for. 

Building a culture of great service doesn’t happen overnight. Here are Hamish’s top tips: 

• Define Your Purpose and Values Clearly – make sure everyone knows why they’re in the building. A strong purpose creates alignment and motivation.
• Invest in Training and Reinforcement – don’t just announce values – embed them. Use creative techniques to make them memorable and actionable.
• Create Joy Internally – hospitality is about passing joy to guests. That only happens when your team feels valued and enjoys their work.
• Commit Time and Resources – culture requires meetings, training, and leadership involvement. It’s an investment that pays off in loyalty and reputation.

While service is fundamental, Hamish reminds us that success in hospitality requires more than smiles and great food. Finance, operations, and leadership all play a role. “You spin a lot of plates in this game,” he says. But if you get culture right in the first few years, it becomes easier to maintain – and harder for competitors to replicate. 

At its heart, hospitality is about creating moments of joy. “You pass joy on,” Hamish says, “but only if you’re enjoying yourself and know why you’re there.” When every team member shares that sense of purpose, guests feel it – and that’s what keeps them coming back.