10th February 2025 ❘

Employment law changes for the leisure and tourism industry

Employment law changes for the leisure and tourism industry

Recent legal changes have had far-reaching effects on all employers, but these have been particularly felt in the leisure and tourism industry. The introduction of the Worker Protection (Amendment of Equality Act 2010) Act 2023 created new employer obligations on sexual harassment, and Labour’s Employment Rights Bill, which comes into effect in early 2026, is set to bring in at least 28 further significant changes, including day one unfair dismissal rights, reform to zero-hour contracts and flexible working reforms. Our Employment team, discusses the changes…

 

Zero-hour contract reforms

Of the provisions in the Employment Rights Bill, those relating to zero-hour contract workers will have a significant impact on the leisure and tourism sector where over a third of the workforce is employed on zero-hour contracts.

The bill introduces a range of rights, including the right to be offered guaranteed hours reflecting a worker’s average weekly hours, and the right to reasonable notice of a shift, or cancellation of any shift. It also sets out that exclusivity clauses in relation to zero-hour contracts will be unenforceable, allowing those who willingly remain on zero-hour contracts to have more than one job.

The bill proposes that if any of these duties is breached, the employee may bring a claim to a tribunal for compensation. Furthermore, an employer must make a payment to the employee each time they cancel, move or curtail a shift at short notice.

 

Sexual harassment reforms

The Worker Protection Act, which came into force on the 26th October 2024, set out a range of duties on employers to take reasonable steps to protect their staff from sexual harassment.

Particularly significant for the industry, is introduction of a duty on the employer to take reasonable steps to prevent sexual harassment, including harassment done by third parties.  A failure to take reasonable steps to prevent sexual harassment will result in an uplift of up to 25% of any award for sexual harassment. This is a pro-active duty so employers must start taking steps to prevent sexual harassment even before any incidents have occurred.  Employers should start engaging with their staff regularly to provide mandatory training on sexual harassment

The Employment Rights Bill will upgrade the duty on Employers to take ‘all reasonable steps’ to prevent sexual harassment, highlighting that employers are fully liable for preventing any harassment by third parties in the workplace. This potentially creates an even higher onus, particularly for employers in the hospitality sector where there may be a heightened risk from customers who have consumed alcohol.

How can I prepare for these changes?

For more information on the other changes the Employment Rights Bill brings and how you can support your business with upcoming legal reforms, you’re welcome to contact a member of our Employment team – just get in touch. We can also deliver Employment Law Training to help develop businesses, managers and HR professionals, and this can be tailored so it’s bespoke to you and your sector.