FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
The UK’s Employment Rights Act 2025 will be phased in over 2026-2027. Changes include banning zero-hours contracts, ending “fire and rehire”, providing day-one rights for sick pay, parental leave, and protection from unfair dismissal (though with a six-month wait). What impact do you foresee the Act having on the facilities management sector?
THE RECRUITMENT EXPERT’S VIEW
COLEEN CLOHERTY,
MANAGING DIRECTOR CPC CONSULTING
The Employment Rights Act 2025 marks a significant shift for the UK facilities management industry, which traditionally relies on zero-hours, agency and flexible staffing models. Its phased implementation will reshape workforce management and compliance strategies. Below are the main changes.
Predictable hours & shift notice
New guarantees for zero-and low-hours workers, such as predictable hours, reasonable shift notice, and compensation for cancelled shifts will require FM providers to overhaul scheduling systems and audit existing contracts. While this may increase labour costs, it could also reduce absenteeism and improve retention, particularly among frontline cleaning and security teams.
Ban on “fire and rehire”
The prohibition of “fire and rehire” removes a mechanism often used to renegotiate terms under tight margins. Organisations will need robust consultation processes and business cases for any contractual changes, slowing restructures but fostering stronger employee engagement.
Day-one rights & shorter dismissal threshold
Immediate entitlement to statutory sick pay, parental and bereavement leave, alongside a reduced six-month qualifying period for unfair dismissal, will increase employer obligations. FM operators must update HR policies, payroll systems, and train managers on absence and performance management within this new framework.
Implementation timeline & flexibility
There has been considerable discussion about the Employment Rights Bill (ERB) coming into force in 2026, so many will be relieved to know that these changes will be phased in during 2026–2027, with further scope for adjustments and amendments. Recent months have shown that the current government is willing to make amendments and even U-turns on key policies, so FM leaders should stay alert for updates and remain agile in their planning.
OVERALL IMPACT
Compliance will raise short-term complexity and costs, but the Act offers long-term benefits: a more stable, motivated workforce, reduced reliance on agency labour, and enhanced reputation. FM providers that proactively adapt by optimising contracts, payroll, and employee relations will gain a competitive edge in securing bids and retaining talent.
Many employers have already approached me for advice, and at this point, we are waiting to see what will happen. We fully expect further changes to come as the legislation progresses.
THE FOODSERVICE INDUSTRY’S VIEW
LAUREN STIRLING,
HEAD OF HR OPERATIONS & PEOPLE DEVELOPMENT, ELIOR UK
The Employment Rights Act 2025 is one of the most significant shifts in the UK employment landscape in recent years. While it will require a complete operational overhaul for some FM organisations, the Act only reinforces the direction we are already taking as a people-centred organisation.
Operating at scale across contract catering and foodservice, our sector is very much people powered. With services delivered daily across thousands of customer-facing sites, consistency matters for colleagues, clients and customers alike. High standards for quality and employee support must be maintained across the board. The Act places greater emphasis on security, fairness and clarity, and for employers with established employment frameworks, the focus should be on pressure-testing existing practices to ensure they remain robust, consistent and fit for a more regulated environment.
One of the most immediate areas of focus is the early employment experience. With the extension of day-one rights around sick pay, parental leave and protection from unfair treatment, strengthening onboarding, induction and early manager-led conversations becomes even more crucial. This is particularly relevant for businesses with high volumes of starters each year. Under these circumstances, getting the first few weeks right is critical, not only for compliance, but for building trust, engagement and long-term retention.
This inevitably places greater responsibility on line managers. Because managers are often promoted for their operational expertise, organisations must also invest in their practical people-management capabilities at the same time. From my perspective, this is where HR adds the most value – equipping managers with the skills to make the right decisions consistently and at pace. Helping them confidently handle absence, performance and wellbeing conversations is central to reducing risk, while ensuring colleagues feel supported and treated fairly.
Workforce planning is another key area of focus. Operating within tight service windows and variable shift patterns requires strong forecasting, clear role design and thoughtful deployment of flexible but secure working arrangements. The Act reinforces the importance of disciplined workforce planning and close collaboration between operations, HR and finance to balance service delivery with evolving employment expectations.
