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The Employment Rights Act: what it means for retail and hospitality start-ups
What the Employment Rights Act means for retail and hospitality
Updated 6 November 2026 from public records. 12 items below.
At a glance
- 12 records from the last 120 days, 6 naming retail and hospitality directly
- Next consultation closes 8 January 2027
- Most active: Department for Business, Innovation, Science and Trade
- Latest record: 4 November 2026
The Employment Rights Act 2025 changes the rules on dismissal, sick pay, zero-hours contracts and flexible working, and sets up a Fair Work Agency to enforce them. The changes arrive in stages, with consultations along the way. A small employer has fewer people to absorb them and usually no HR team. The Act on legislation.gov.uk.
What it means for your start-up
Retail and hospitality rely on variable hours, so the changes on zero-hours contracts, guaranteed hours, notice of shifts and pay for cancelled shifts land here first. Sick pay from the first day of absence and the new Fair Work Agency add to it.
What to do now
- Work out how many staff are on variable hours and what guaranteed hours offers would cost.
- Plan rotas with the coming notice and cancellation rules in mind.
- Respond to the consultations on the shift rules, where the detail for your sector is being set.
Open for comment now
- Make Work Pay: employment status reform and protections for the self-employed
We are seeking views on proposals to reform employment status, improve compliance with employment rights and strengthen protections for the self-employed.
Latest from government
- Recovery of £59,000 for five IT Agency Workers
More than £59,000 recovered in unpaid wages following action by the Fair Work Agency - Stronger protections for pregnant women and new parents against unfair dismissal
Tribunals to use a new, stricter, approach for dismissal cases involving pregnant women and new parents from 2027 - Zero hours contracts: guidance for employers
Guidance on zero hours contracts - includes information on how to use them, employment rights and alternatives.
In Parliament
Marked: mentions retail and hospitality directly.
- What assessment his Department has made of the adequacy of existing enforcement powers in holding large online retailers to account for breaches of employment…
Asked by Melanie Onn (Lab). Electronic Commerce: Conditions of Employment — The government keeps enforcement frameworks under review.For employment protections, the Fair Work Agency has powers to inspect workplaces,… - What guidance his Department plans to provide to employers on what constitutes reasonable notice of a) shifts and b) changes to shifts under the proposed…
Asked by James McMurdock (Ind). Zero Hours Contracts: Reform — The government will publish guidance and provide time for employers to adjust to the new rules around shift notice. The guidance will cover how much… - What assessment he has made of the potential impact of proposed shift scheduling and short-notice payment requirements on employees who voluntarily choose…
Asked by James McMurdock (Ind). Working Hours — The government has published its options assessments and concluded consultation on the reforms of zero hours and similar contracts. Through this and an extensive… - What discussions he plans to have with the (a) retail, (b) hospitality and (c) leisure industry on the potential impact of the Employment Rights Act on access…
Asked by Sir James Cleverly (Con). Conditions of Employment — The Government is undertaking an extensive programme of engagement with trade associations and businesses, including in the retail, hospitality and… - Whether his Department plans to review the current framework governing Sunday working arrangements, including the potential merits of a universal choice-based…
Asked by Claire Hazelgrove (Lab). Sunday Trading — The Employment Rights Act 1996 currently provides shop and betting employees in Great Britain with a right to opt out of working on Sundays (unless they are employed… - Why serviced offices which split their hereditament are treated differently to coworking spaces for the purpose of business rates relief.
Asked by Peter Fortune (Con). Flexible Working: Business Rates — The Government has introduced new permanently lower tax multipliers for eligible retail, hospitality and leisure (RHL) properties. These new tax rates… - When the fire and rehire provisions contained in the Employment Rights Act 2025 will come into force.
Asked by Frank McNally (Lab). Re-employment — On 22 October 2026, the Government updated the implementation timeline for the Plan to Make Work Pay and the Employment Rights Act 2025.The Fire and Rehire provisions in the… - How many and what proportion of full-time staff on full pay in his Department work compressed hours over a four day week.
Asked by Mike Wood (Con). Northern Ireland Office: Working Hours — At the Northern Ireland Office, flexible working requests are submitted directly to line managers for discussion and approval. The department does…
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Contains public sector information licensed under the Open Government Licence v3.0. Contains Parliamentary information licensed under the Open Parliament Licence v3.0. General information, not legal advice.