The Employment Rights Act 2025 is the biggest shake up of UK employment law in more than a generation. If you employ people in Torbay, across Devon, or anywhere in the Westcountry, the changes will affect you. Some apply from day one. Others phase in over the coming months. All of them mean your contracts, handbook, and day to day people practices need a careful look right now.
At Westcountry HR we are already working with businesses across Torquay, Paignton, Brixham, and the wider South Devon area to get them ready. This guide pulls together what the Act actually says, what it means in practice, and the steps you should take this quarter so you stay compliant and avoid expensive surprises.
Why this matters for businesses in Torbay and Devon
Devon has one of the highest concentrations of small and medium sized employers in the South West. The local economy leans heavily on hospitality, tourism, care, trades, and seasonal work. Every one of those sectors is touched by the new rules. A seaside hotel in Torquay taking on summer staff, a care provider in Newton Abbot managing rota changes, a Brixham fishery dealing with sickness absence, a Paignton retailer running a probation period. Every one of you will see real changes in how you can and cannot handle employee matters.
The other reason this matters locally is enforcement. The Act creates a new Fair Work Agency that will combine the powers of several existing bodies. It will have stronger investigation rights and more visible activity. Devon employers who have always operated on goodwill and handshake practices will find that approach a lot riskier from now on.
Day one employment rights: the headline change
The single biggest change in the Employment Rights Act 2025 is the move to day one rights for unfair dismissal. Until now, most employees needed two years of service before they could bring an unfair dismissal claim. Under the new framework, that qualifying period is being removed for the main statutory protections.
What this means in practice for a Torbay employer is simple. From the moment a new starter signs their contract and walks through the door, they have far stronger rights than they did before. The old approach of treating the first two years as a no questions asked safety net is gone.
This does not mean you cannot let people go who are not working out. It means you have to do it properly, with a fair process, from day one. That is where a well drafted probation policy, clear performance expectations, and proper documentation become essential.
Probation periods: handle with care
The Act introduces a statutory initial period of employment, often described as a modified probation. During this window employers can still dismiss for capability or conduct reasons with a lighter touch process, but it is not a free pass. You will need:
- A written probation clause in every employment contract
- Documented performance reviews at fixed points during the probation
- Evidence of feedback given, support offered, and concerns raised
- A fair meeting before any decision to dismiss
- A right of appeal, even during probation
If your current contracts say something vague like a three month probation that may be extended at the discretion of the employer, that wording is no longer enough. Every Devon employer should be reviewing their template contract this quarter.
Statutory sick pay from day one
Statutory Sick Pay rules are also changing. The lower earnings limit and the three waiting days are being reformed so that more workers qualify, and they qualify sooner. For sectors like hospitality and retail across Torquay and Paignton, where part time and zero hours arrangements are common, this is a notable cost change.
If you run payroll in house, your software provider should already be flagging this. If you outsource payroll, ask your provider to confirm in writing that they are applying the new rules from the correct effective date. Westcountry HR can review your sick pay policy alongside the changes so your handbook reflects the new position rather than the old one.
Flexible working: a real default, not a polite suggestion
Flexible working has been a day one right since 2024, but the 2025 Act tightens it further. Employers must now respond within a shorter timeframe, can only refuse on a defined list of business grounds, and must be able to demonstrate that the refusal is reasonable. The burden has shifted.
For a Torbay employer this means three things:
- Train your line managers in how to handle a flexible working request properly
- Document any business reason for refusal in writing, in real time, not after the fact
- Treat flexible working as a normal business conversation, not a one off concession
If you have never received a flexible working request, you almost certainly will soon. The cultural expectation has shifted and the legal framework has caught up.
Zero hours and low hours contracts
Anyone running a seasonal business in Devon needs to pay close attention here. The Act introduces a right for workers on zero hours or very low guaranteed hours contracts to request a contract that reflects the hours they actually work over a reference period. There are also new rules on shift cancellation, short notice changes, and compensation when shifts are pulled at short notice.
Hospitality businesses in Torquay, holiday parks in Paignton, and event venues across the bay should be reviewing how they manage their casual workforce. The days of building a rota around the assumption that staff will pick up shifts on demand with no consequences are over. If a shift is cancelled within a defined window, there may be a payment owed.
Fire and rehire: heavily restricted
The practice of dismissing employees and re engaging them on worse terms, often called fire and rehire, is now subject to far stricter rules. In most cases it will only be lawful where the business is in genuine financial difficulty and there is no reasonable alternative. The bar is high and the Tribunal will not be sympathetic to employers who use it as a shortcut to renegotiate contracts.
If you are considering any kind of contract change across your workforce, get advice first. A consultation done properly is almost always cheaper than a Tribunal claim done badly.
Harassment and the duty to prevent
Building on the 2024 changes, employers now have a strengthened proactive duty to prevent sexual harassment and harassment by third parties. For Devon businesses that deal with the public, including restaurants in Torquay, shops along Paignton seafront, and tourist attractions across South Devon, this is significant. You can be liable for harassment of your staff by customers if you have not taken reasonable steps to prevent it.
Reasonable steps include:
- A clear, well communicated anti harassment policy in your handbook
- Documented training for managers and staff
- A defined route for staff to raise concerns without fear
- Evidence of how you respond when issues are reported
- Risk assessments for customer facing roles
Trade union and collective rights
The Act also makes changes to trade union recognition, access to workplaces, and statutory recognition thresholds. Most very small employers will not feel an immediate impact here, but anyone with a growing workforce in a sector where unionisation is rising should be aware. Care, transport, and parts of the hospitality sector are all seeing renewed union activity in the South West.
What Devon employers should do this quarter
If you take one thing from this article, take this: do not wait. The penalty regime under the Fair Work Agency has more teeth than the bodies it replaces, and Tribunal awards under the new framework are not capped in the same way they were before for several heads of claim.
Here is a practical checklist for any Torbay or Devon business right now:
- Review every employment contract template you use and update it for day one rights and the new probation framework
- Refresh your employee handbook to reflect the new statutory sick pay rules, flexible working timelines, harassment duty, and shift change rules
- Train your line managers, because they are the ones who will actually have to apply this on the ground
- Audit your zero hours and casual contracts against the new reference period rules
- Document everything. The Tribunal will ask what you did, when, and why
How Westcountry HR helps Torbay and Devon employers
We are based in Newton Abbot, a few minutes from Torquay, and we work with businesses across Paignton, Brixham, and the whole of South Devon. We know the local economy and we know the practical reality of running a small business through a major legal change.
Every new client gets a free HR Healthcheck. We come in, look at your contracts, your handbook, and your day to day practices, and we tell you honestly where the gaps are. There is no obligation and no hard sell. You get a clear report you can act on.
If you want to make sure your Torbay business is ready for the Employment Rights Act 2025, book your free HR Healthcheck today. Call 01626 367595 or email hello@westcountryhr.com.