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.