The passage of the Employment Rights Act heralds a major change to unfair dismissal laws. In this article, Charlie Rae, Employment Partner at TLT reviews the likely impact on the Pub & Bar sector.
Major changes to unfair dismissal laws are on the horizon, and pub and bar operators should start planning well in advance for that change. Following Royal Assent of the Employment Rights Act 2025, new rules concerning unfair dismissal take effect from 1 January 2027, significantly expanding employees’ rights and increasing risk for employers, particularly in sectors such as hospitality, which are highly people focussed.
While 2027 may feel some way off, operators will need to start focussing in on their recruitment and management practices to help manage some of the risk areas.
A shorter qualifying period and more claims
The most eye catching change to the various employment law developments being introduced by the Government is the reduction in the qualifying period for unfair dismissal. From January 2027, employees will gain protection after six months’ service (including service accrued prior to that date), replacing the current two-year threshold.
Across the economy, an estimated 6.3 million additional workers will gain the right to bring an unfair dismissal claim. For pubs and bars, where staff turnover is often high and many roles are filled by newer employees, the impact could be significant.
The compensation cap is going
Alongside the shorter qualifying period, the...
Times of Malta's editorial team has demanded that alleged money-launderer Chris Spiteri remove false claims posted on Facebook against journalist Jacob Borg. An alert has also been filed with the ...