The upcoming reforms, part of the Employment Rights Act 2025, will give employees day one entitlements to paternity, parental and bereavement leave, as well as statutory sick pay.
Further changes in 2027 will include unfair dismissal reforms, updated zero-hours contracts and stricter redundancy rules.
Kathryn Walters, a senior associate in the employment team at Clarke Willmott, said: “Retailers already operate in a challenging environment, with tight margins, rising rents and fluctuating footfall.
“These April 2026 reforms will affect day-to-day operations, from managing leave requests to planning staffing and scheduling.
“By reviewing policies, updating contracts and training managers now, businesses can protect their workforce, maintain stability and manage staffing challenges such as high turnover roles, seasonal recruitment and temporary cover.
“This isn’t just a compliance exercise - it helps reduce the risk of disputes or penalties.”
Kathryn advises retailers to:
• review contracts and policies to ensure that these are legally compliant, reflect statutory entitlements and are fit for purpose.
• strengthen recruitment and onboarding processes and procedures - with the impending changes to unfair dismissal rights to have robust screening, induction and probationary practices will be key.
• train managers to ensure that they are aware of and able to consistently apply and enforce policies and procedures across the workforce. Employees are increasingly aware of and exercising their statutory rights, therefore it will be essential that managers understand and implement policies fairly and consistently if employers want to seek to limit exposure to Employment Tribunal litigation.
She continued: “The Employment Rights Act marks the biggest change in employment law in a generation aimed at strengthening employee rights and improving workplace protections.
“Retailers, and indeed all employers are advised to therefore prepare accordingly as these changes start to trickle out over the next 12-18 months.”
