Four priority reforms for hospitality employers
Preventing sexual harassment and managing customer behaviour
From 30 October 2026, employers must take all reasonable steps to prevent sexual harassment at work. They will also have an obligation not to permit employees to be harassed by customers and other third parties.
This is particularly relevant to hospitality and leisure businesses, where employees regularly interact with customers and guests, often in late-night settings or environments involving alcohol.
The practical question will not simply be how the business responded after an incident. Employers may also need to demonstrate what they did to identify and reduce the risk before it happened.
Immediate priorities:
- Assess harassment risks across different venues, roles and working patterns.
- Give managers clear authority to intervene, escalate incidents and remove customers where necessary.
- Make sure employees have accessible reporting routes and confidence that concerns will be taken seriously.
Tipping and service charge transparency
Existing legislation requires qualifying tips, gratuities and service charges to be distributed fairly and transparently.
From 1 January 2027, employers will also need to consult affected workers when developing or reviewing their written tipping policies. Policies must be reviewed at least once every three years, with an anonymised summary of the views expressed during consultation made available to affected workers.
Hospitality employers should consider whether their current arrangements are clear, fair and capable of being explained consistently to employees.
Immediate priorities:
- Review the written tipping policy and how it operates in practice.
- Identify which workers or representatives will need to be consulted.
- Establish how consultation, feedback and future policy reviews will be recorded.
Probation, dismissal and unfair dismissal risk
From 1 January 2027, employees will generally qualify for ordinary unfair dismissal protection after six months of service rather than two years.
The change will apply to dismissals taking effect from that date. It is therefore relevant to existing employees approaching six months of service, not only to people recruited after the new rules take effect.
The removal of the compensatory award cap may also increase potential exposure in some higher-value claims, although compensation will continue to be based on the claimant’s evidenced losses.
Immediate priorities:
- Identify employees who will have at least six months’ service by January 2027.
- Review the timing and structure of probation and performance processes.
- Make sure managers record concerns and follow fair, consistent procedures.
Zero-hours contracts, shift notice and rota planning
Future reforms will introduce rights to guaranteed hours reflecting hours worked during a reference period, reasonable notice of shifts and payments when shifts are cancelled, moved or curtailed at short notice.
The final detail and implementation date remain to be confirmed. However, hospitality employers can begin examining how their current staffing arrangements operate in practice.
The reforms may affect how rotas are prepared, how late changes are authorised and how flexible staffing models are documented.
Immediate priorities:
- Audit the use of zero-hours, low-hours, casual and agency arrangements.
- Compare contractual hours with the hours employees and workers regularly work.
- Review how shifts are offered, changed and cancelled, and what records are retained.