How Will the Employment Rights Bill Affect the Beauty Industry?

The UK's Employment Rights Bill, introduced on 10 October 2024, brings substantial changes to workplace regulations, promising a significant impact on the beauty industry. With its emphasis on protecting workers' rights, enhancing work-life balance, and promoting fair practices, the bill presents both opportunities and challenges for beauty salons, spas, and related businesses.

Key Reforms and Industry Impacts

1. Flexible Working as a Norm

Under the new law, flexible working becomes the default, allowing all employees to request arrangements like part-time work or flexible hours from day one. This shift will likely benefit beauty professionals, many of whom seek flexibility due to childcare responsibilities or secondary employment. However, small beauty businesses may struggle with staffing, as sudden requests could disrupt schedules during peak periods. Salon owners will need to balance employee preferences with client demand, potentially requiring innovative scheduling solutions​

2. Zero-Hours Contracts Phase-Out

The beauty sector frequently relies on zero-hours contracts to manage fluctuating client bookings. The bill’s provisions require contracts to reflect actual hours worked and offer reasonable shift notice. This change will push salons to adopt fixed or minimum-hour contracts, providing employees with greater job security. However, it also limits the flexibility businesses need to accommodate seasonal demand, potentially increasing operational costs​

3. Ban on ‘Fire and Rehire’ Practices

The prohibition of firing employees only to rehire them on less favourable terms will affect salons that occasionally used this method to adjust wages or working conditions. Now, restructuring will require more extensive negotiation and potentially higher severance costs, challenging for smaller establishments already facing tight margins​

4. Day-One Employment Rights

Immediate access to unfair dismissal protection and parental leave from the first day on the job reshapes the probationary landscape. While this benefits beauty industry employees, particularly in high-turnover roles, salon owners will need to adopt more robust hiring practices. Establishing clear performance metrics and investing in training during the probation period may mitigate the risk of early tribunal claims​

5. Enhanced Statutory Sick Pay (SSP)

By abolishing the SSP waiting period and expanding eligibility, more beauty professionals will qualify for sick pay from the onset. For an industry where casual illness cover can be difficult to arrange, salons may face increased costs and operational challenges. Business owners must budget for these expenses or invest in cross-training to ensure staff can cover absences effectively​

6. Strengthening Protections Against Harassment

The new duty on employers to prevent harassment, including third-party harassment, underscores the need for beauty businesses to protect their staff from client misconduct. Salons must adopt comprehensive harassment policies, provide training, and enforce them diligently. This requirement is essential for safeguarding workers in an industry where one-on-one interactions are common, but it may also involve additional administrative responsibilities for salon owners​

7. Supporting Women’s Health and Equal Pay

Large beauty chains with over 250 employees will need to develop menopause support plans and actively address gender pay gaps. This will improve workplace inclusivity but could entail significant administrative effort and cost, especially for businesses lacking HR resources. Smaller salons, though exempt, may still feel pressure to follow suit due to industry-wide expectations​

As the Employment Rights Bill moves through Parliament, beauty industry leaders should consider updating their HR policies and investing in training to ensure compliance. While the reforms may initially strain resources, the increased protections could enhance job satisfaction and reduce turnover, ultimately benefiting the industry. With full implementation anticipated by 2026, now is the time for salons to prepare and adapt, embracing a new era of worker rights and industry standards