By Ruth Gladwell
As Scotland’s hospitality sector gears up for the Employment Rights Act 2025 – the most significant overhaul of workers’ rights in a generation – now is the time to ensure your people practices are fully compliant.
With the legislation introducing over two dozen major reforms, two areas in particular demand immediate attention: probation periods and performance management.
Probation Periods: Greater Clarity, More Accountability
Probation periods have long been a practical tool for assessing new starters, but the upcoming changes will bring tighter expectations around transparency and fairness.
Employers will need to clearly outline probation terms from day one, including duration, review points, support available and criteria for successful completion.
The unfair dismissal qualifying period reduces to 6 months; it’s currently 2 years. This isn’t simply best practice – it is going to become standard, commercial operating practice.
Within the hospitality industry, where high turnover and fast-paced operations are the norm, investing time in structured probation planning will pay dividends.
Consider introducing template probation plans for every new employee, with scheduled check-ins at set intervals. These should be documented, consistent and focused on both performance and wellbeing.
If an employee is struggling, the Act emphasises early intervention: reasonable adjustments, additional training, and clear guidance on improvements required.
Performance Management: Moving from Reactive to Proactive
The Employment Rights Act 2025 places stronger obligations on employers to ensure that performance processes are robust, transparent and supportive.
For hospitality businesses – many of which rely on seasonal workers, shifting shift patterns and varied team structures – this means rethinking how and when performance conversations happen.
Start by reviewing your existing policies. Are managers trained to give constructive feedback? Are processes the same for all staff, regardless of role, location or hours worked?
The new legislation expects greater consistency, and employees will have stronger protections if they feel they’ve been treated unfairly.
Documenting performance concerns early and clearly becomes even more crucial under the Act. Ad-hoc conversations will no longer be sufficient; instead, employers should maintain written records of expectations, next steps, and agreed review dates.
This not only ensures compliance but also helps managers identify training needs before issues escalate.
What to Prioritise:
- Update your probation and performance policies to reflect the new statutory expectations.
- Train managers – especially supervisors and team leaders – on conducting fair and consistent reviews.
- Strengthen record-keeping practices across the employee lifecycle.
- Communicate changes clearly to staff to maintain trust and transparency.
The Employment Rights Act 2025 ultimately aims to create more secure, fair and supportive workplaces. For hospitality employers, embracing these changes now won’t just ensure compliance – it has the potential to strengthen retention, morale and service quality in the long term.
