Laura Morrison

Key developments include the introduction in April 2026 of day-one entitlements to statutory paternity and parental leave, alongside a doubling of the cap on protective awards for failures in collective consultation.

Statutory Sick Pay (SSP) entitlement is also due to change from April 2026, with the government planning to remove the lower earnings limit and waiting days. This will ensure all workers receive the lower of the flat rate or 80 per cent of normal earnings.

New protections relating to fire and rehire, third-party harassment and an enhanced duty to take allreasonable steps to prevent sexual harassment are due to take effect in October 2026, increasing employers’ compliance obligations and potential exposure in tribunal claims.

The time limit for lodging any tribunal claim will also increase from three to six months from October 2026.

The hospitality and tourism sector, a major part of Scotland’s economy which is characterised by high volumes of young workers, seasonal staff and variable hours roles, will feel several changes acutely. SSP reforms will increase payroll costs, as many workers currently earning below the lower earnings limit will become eligible for paid sick leave.

The longer tribunal time limit may increase HR complexity and require more robust record-keeping.

The enhanced duty to prevent sexual harassment, and reintroduction of liability for third-party harassment, are also particularly relevant for customer-facing environments such as hospitality and tourism, where employees routinely interact with the public.

Employers will need to ensure they provide staff training, have in place clear reporting processes and carry out proactive risk assessments ahead of the October 2026 changes.

Although not due to come into force until 2027, Scottish employers in sectors reliant on zero hours workers, such as hospitality and tourism, and agriculture, will need to factor the forthcoming changes into their workforce planning in 2026. Employers will be required to offer guaranteed-hours contracts that reflect actual working patterns, with compensation for cancelled shifts.

Laura Morrison is a managing practice development lawyer at Dentons