Following the passage of the landmark Employment Rights Act (ERA) 2025, the most significant modernisation of workers’ rights in a generation, the Government has officially opened five key consultations.
From salon owners to retailers and brand headquarters to therapists, these changes to employment rights will touch every sector of the beauty industry. More than just a legislative update, it is your opportunity to ensure the unique needs of businesses operating in our sector are heard, before these rules are formalised.
A New Era for the Workforce
The Employment Rights Act 2025 will roll out in phases over the next two years, introducing several “headline” shifts:
- Unfair Dismissal: The qualifying period to be slashed from two years down to just six months.
- Day-One Rights: Paternity and Unpaid Parental Leave will become available from the very first day of a new job.
- Ending ‘Fire and Rehire’: New restrictions will make it significantly harder for businesses to terminate and re-engage staff on lesser terms.
Beyond these, the Act will also deliver reforms to zero-hour contracts and strengthen Statutory Sick Pay allowances by removing the Lower Earnings Limit and the three-day waiting period, as well as establish the Fair Work Agency to bring together labour legislation enforcement.
The Four Consultations that Matter: What, Where and Why
The Government is currently seeking genuine business insight into how these policies should function in practice. Here is where you can have your say:
- Tipping Policy & Transparency
This consultation looks at whether employers should consult with staff when creating a tipping policy. For an industry where tips can be a vital part of take-home pay, this is crucial. The Government wants views on the statutory code of practice for fair distribution.
Deadline: 1st April 2026 | Share your views here
- Flexible Working: The New Standard
This consultation asks what support businesses require to handle flexible working requests fairly. The Employment Rights Act introduces a stricter process for employers who intend to reject a request. Whether you’re managing floor rotas or office teams, your input on how to make flexibility work for the beauty industry is vital.
Deadline: 30th April 2026 | Share your views here
- Modernising Agency Work and Umbrella Companies
This consultation explores how regulation should be adapted to include umbrella companies. If you rely on temporary staff or work via an agency, this consultation aims to close loopholes, modernise the temporary labour market and safeguard those working through umbrella companies, to ensure they have the same protections as any other employee.
Deadline: 1st May 2026 | Share your views here
- Defining ‘Fire and Rehire’ Protections
This consultation addresses the benefits and shift patterns that should be protected from “automatic” unfair dismissal. Under the new rules, changing core contract terms by dismissing and replacing staff will be deemed unfair. The Government aims to determine the specific expenses and shift patterns that deserve this protection.
Deadline: 1st April 2026 | Share your views here
Why Your Voice Matters
The beauty industry is a powerhouse of the UK economy, but our workforce structures, ranging from chair renters to large-scale retail teams, are unique. By participating in these consultations, you ensure that the ‘fair work’ regulations of the future work for businesses in the hair and beauty sector.
Further consultations will be released as the April 2026 milestone approaches. Sign up for the British Beauty Council newsletters to stay updated.
