Travel firms urged to ‘act now’ to be ready for new employment rules

Travel firms have been urged to put their houses in order ahead of new legislation under the Employment Rights Act 2025.

The warning came on the latest ABC Webinar, jointly hosted by C&M Travel Recruitment, Travlaw and The Global Travel and Tourism Partnership.

TravLaw partner Ami Naru described planned changes, including the right for employees to claim unfair dismissal after six months instead of two years, as “a generational change”.

She stressed: “Implement these changes now, why wait for the government to tell you to do it? You all need to update your systems, contracts and policies. I’d suggest you start doing that now.”

A new body, the Fair Work Agency, will ensure the law is enforced, issuing penalties for non-compliance and bringing employment tribunal claims on behalf of employees.

A “quite significant” rise in the number of claims and hearings is expected, added Naru, but she insisted: “It can be navigated if you have done your due diligence.”

Naru urged firms to replace three-month staff probation periods with six months in line with the new qualifying period for unfair dismissals.

“Look at your probationary period,” said Naru, adding: “Three months may have worked when everyone was attending the office regularly but with remote working you are not seeing people as often as you did.”

The new six-month qualifying period – originally proposed as a day one right – is expected to become law in January 2027. The law will also remove the cap on damages for unfair dismissals.

Further changes related to zero hours contracts include the obligation for companies to provide guaranteed hours, notice periods for shift changes and compensation for short-notice cancellations. The details, still under consultation, are likely to impact travel firms with seasonal staff.

Key changes due to come in this April include day one rights to Statutory Sick Pay (SSP), elimination of the Lower Earnings Limit for eligibility to SSP, and day one rights for paternity leave and unpaid parental leave.

The act will also strengthen employees’ flexible working rights and require firms to take all reasonable steps to prevent sexual harassment in the workplace, such as training and risk assessments.

“If you haven’t rolled out training, got a policy or done an audit, I strongly recommend you start sooner rather than later,” Naru added.