Employee Rights Act 2026 Q&A for Hospitality Employers

Sick pay and SSP 

Do short sickness absences need to be certified by a doctor? 

There is no legal requirement for a doctor’s certificate for short periods of sickness, but any sick pay must follow your organisation’s policy. You should make sure your sickness and absence policies are clear, up to date and consistently applied, and that you have a return‑to‑work process in place to help manage repeat or longer‑term absence. 

Is it still a risk that sick pay moves to 80% of hourly pay? 

Under the new rules, Statutory Sick Pay (SSP) will be paid at the lower of 80% of earnings or the new flat rate (£123.25 per week from 6 April 2026), pro‑rated where appropriate. This means that for some workers, 80% of pay will apply, and for others the flat rate will be the maximum. 

If an employee is only scheduled for part of the week, what hours are covered by SSP? 

The new approach to SSP only applies to scheduled working hours. For example, if an employee is off sick on Monday but their next shift is not booked in the rota until Thursday, they would only be entitled to SSP for the working time they were actually due to work. You should make sure your rotas and records clearly show contracted and scheduled hours. 

How much impact will removing the lower earnings level and moving to day‑one SSP have? 

The impact will vary between businesses, but removing the lower earnings level and introducing SSP from day one is expected to have a bigger effect where you have a high proportion of part‑time or lower‑paid workers. These changes tend to benefit part‑time workers disproportionately, so it’s worth modelling the potential cost using your current absence and pay data. 

Harassment, third parties and workplace protections 

How should businesses prepare for the sexual harassment changes and third‑party liability? 

You should start by reviewing your existing policies, training and reporting procedures around sexual harassment.  

Guidance on the current law is available from sector bodies such as UKHospitality, and much of this will carry across to the extended duty to prevent harassment by third parties such as customers and suppliers. Identify who your “third parties” are, make sure your rules and standards are clearly communicated to them, and ensure staff know how to report incidents and how they will be supported. 

Contracts, closures and working patterns 

We plan to close for two months in winter – can we use fixed‑term contracts? 

The final rules on guaranteed contracts are still to be confirmed. However, it has been indicated that employers will not be obliged to offer hours during periods when there is genuinely no work available.  

In practice, fixed‑term contracts can be a legitimate way to manage seasonal closures, provided they are used transparently, in line with employment law, and with clear start and end dates set out from the outset. 

How should operators manage existing employees who currently have zero‑hours contracts? Do they need to transition them to guaranteed hours immediately? 

You don’t need to move everyone off zero‑hours contracts overnight, but you do need a plan.  

The Act will require employers to offer guaranteed hours contracts to eligible zero‑hours and low‑hours workers whose actual working patterns meet a set threshold over a reference period.  

In practice, hospitality operators should start tracking hours worked carefully, identifying staff who work regular patterns and preparing to offer them contracts that reflect those hours once the detailed regulations and timelines are confirmed. 

Enforcement, timelines and preparation 

Are there any grace periods for compliance, or is enforcement immediate when rules go live? 

Each element of the Act has its own commencement date, and some changes will be phased in, but once a provision is in force there is not usually a formal “grace period” for compliance. Employers are expected to be ready by the relevant go‑live dates, so the focus now should be on understanding the timeline, prioritising high‑impact changes and updating policies, contracts and systems in advance. 

What enforcement action can be taken if operators are not ready by April or October? 

Non‑compliance can lead to a mix of risks: employee claims in the employment tribunal, enforcement action by regulators (for example around SSP and tipping) and potential reputational damage. Depending on the issue, tribunals may award compensation, require policies or practices to be changed and, in some cases, look closely at whether an employer has acted reasonably in handling requests or allocating tips. 

What early challenges are you seeing among operators preparing for compliance? 

Common challenges include understanding the cumulative cost of day‑one SSP, guaranteed hours and tighter tipping rules; adapting rota practices and systems to track hours accurately; and preparing managers to handle more complex conversations about contracts and flexible working. Many hospitality employers are also finding they need better data and reporting to evidence fairness and consistency across multiple sites. 

Flexible working and rota planning 

Can we decline a flexible working request if it impacts service levels or rota coverage? 

Employees already have a day‑one right to request flexible working, but employers can still refuse a request if one or more of the statutory business reasons applies, such as a detrimental impact on performance, quality or ability to meet customer demand.  

You must follow a fair process: consider the request carefully, consult with the employee, and explain clearly and in writing why it is reasonable to refuse based on those business reasons if you decide not to agree. 

With flexible working becoming a day‑one right, how do we manage high volumes of requests fairly and consistently? 

Start by setting out a clear internal process for handling flexible working requests, including timescales, who reviews them and what criteria you will consider. Train managers to apply the same principles across sites, keep a record of decisions and reasons, and where possible explore compromises (for example trial periods or partial adjustments) rather than treating requests as “all or nothing”. 

How do we balance compliance with maintaining service quality during busy periods? 

You’re still entitled to factor in business needs when assessing requests, including peak trading times, rota coverage and customer service standards. The key is to show that you have genuinely considered each request, looked at alternatives (such as shift swaps or staggered start times) and can justify any refusal by reference to clear, objective business reasons – not personal preference. 

Tips and fair distribution 

What counts as a “fair” distribution method under the new rules? 

The law requires tips, gratuities and service charges to be allocated fairly and transparently between workers, and the Employment Rights Act tightens those rules further.  

In practice, “fair” usually means having a clear, written policy that is consulted on with staff, uses objective criteria (such as role, hours worked and responsibility), and is applied consistently and reviewed regularly, with workers able to see how decisions are made. 

If we currently use tronc, what operational changes do we need to make before the deadline? 

If you use a tronc, you will need to make sure your arrangements meet the new standards on transparency, worker consultation and regular review. That may include updating your written tipping policy, formally consulting with worker or union representatives on how tips are allocated, documenting tronc decisions and carrying out a structured review of your tipping policy at least every three years. 

To claim the free tronc review mentioned in the webinar, get in touch with the TiPJAR team here.  

People and change management 

How do you ensure fairness and consistency in applying the new rules across different sites? 

Set group‑wide principles for how you’ll apply the new rights, then support local managers with standard templates, decision‑making criteria and HR oversight.  

Use your workforce systems and reports to spot inconsistencies in how requests, rotas or contract changes are handled between sites, and intervene early where needed. 

Further information and resources 

Where is the best place to see all the new regulations together? 

The Government’s roadmap on implementing the Plan to Make Work Pay and the Employment Rights Act sets out the timetable and overall package of measures.  

Managing compliance with rotas and employment law