Business Partner News | RWK Goodman: Employment Rights Act 2025 – Key changes hospitality employers need to prepare for

With further changes under the Employment Rights Act 2025 taking effect from 30 October 2026, hospitality employers are being urged to review their policies and procedures to ensure they are prepared for new employment law requirements.

Lauren Harkin, Partner in Employment & Immigration at IoH Business Partner RWK Goodman, outlines the key changes affecting hospitality businesses, including stronger protections against sexual harassment, extended employment tribunal time limits and new trade union rights.

What are the key changes?

Stronger sexual harassment prevention duties

From 30 October 2026, employers must take “all reasonable steps” to prevent sexual harassment, raising the bar for workplace protection. Employers will also become liable for harassment of staff by third parties, including customers and guests, unless they have taken all reasonable steps to prevent it.

Extended employment tribunal time limits

Since 1 October 2026, the time limit for bringing most employment tribunal claims has extended from three to six months. This means hospitality businesses may face claims later, making it increasingly important to maintain accurate records and ensure managers document incidents appropriately. The previous three-month limit may still apply to issues that arose before 1 October.

Changes to trade union rights

From 30 October, trade unions will have strengthened workplace access rights, including the ability to request formal access agreements even where a union is not recognised. Protections for workers taking industrial action will also be extended. From 1 January 2027, employers will have a duty to inform workers of their right to join a trade union.

Tipping policy requirements

Employers will need to consult staff, their union or representatives before introducing or revising a tipping policy, share an anonymised summary of feedback and review the policy at least every three years.

Further reforms are expected in early 2027, including a reduction in the qualifying period for ordinary unfair dismissal from two years to six months, alongside tighter rules around dismissing employees who do not agree to certain contractual changes.

What should hospitality employers do now?

RWK Goodman recommends that businesses take practical steps to prepare, including:

• Reviewing harassment risk assessments across venues, particularly for customer-facing roles, late shifts and lone working
• Training managers to intervene, record and escalate incidents involving guests, and ensuring staff know how to report concerns
• Preparing processes for trade union workplace access requests
• Using probation periods effectively, with clear objectives and regular reviews
• Reviewing proposed contractual changes to hours, rotas and pay against fire-and-rehire rules
• Establishing a consultation process for tipping policies.

Free employment law support for IoH members

To help members navigate these changes, RWK Goodman offers IoH members a complimentary 30-minute strategic review of their employment law issues, including support with understanding the Employment Rights Act 2025. The session provides an opportunity to review your current position, identify potential risks and understand where further legal advice may be beneficial.

Find out more and book your free strategic review