In brief

• The Employment Rights Act 2025 introduces the biggest changes in employment law in a generation and will require employers to rethink how they employ, manage and part ways with their staff.
• Flexibilities from using zero hours workers will be significantly reduced, as new rights to guaranteed hours and reasonable notice of shifts are introduced, which may be more challenging in the beauty and wellness sector where flexible hours and client-led scheduling are central.
• Greater trade union involvement can be expected, with workers' collective rights being substantially strengthened.
• Unfair dismissal rights will be significantly enhanced, requiring more proactive workforce management from recruitment through to dismissal.
• New liability risks for harassment by clients and other third parties will require careful handling. Staff in this sector are more vulnerable than other sectors given the close physical interaction with clients.

The biggest shake up of employment rights in a generation

The Employment Rights Act 2025 (the Act) rebalances the relationship between employers and their staff, with a marked shift towards greater structure and employer accountability. For beauty and wellness businesses - where flexible hours, client-led scheduling, and client interaction are part of the DNA - the impact will be substantial.

A reduction in workforce flexibility

A major change being introduced by the Act in 2027 is the provision of protections for workers on zero or low...

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