Unfair dismissal

Employees currently require two years’ service before they gain protection from being “unfairly dismissed”, which broadly means that a prescribed reason for the termination is necessary, along with a process which must be followed prior to the decision.

Claims are subject to a cap on the compensatory element of any award (the lower of a year’s salary or £118,223). From January 2027, employees will gain protection after just six months’ service and there will be no cap on compensation.

Fixed-term contracts are common in the sports industry, particularly for coaching and playing staff, and often also include early exit mechanisms in exchange for an agreed sum. However, this does not make the arrangement immune from unfair dismissal claims, as the termination of a fixed term contract still constitutes a “dismissal”. The ERA 25 changes will therefore have a big impact on how the negotiation of such contracts and exits are approached, for example:

• Strong mitigation provisions, requiring ex-employees to seek alternative employment, along with periodic reporting requirements, may assist in reducing both contractual termination payments (or payments in lieu of notice) and potential unfair dismissal compensation. Termination payment structures and whether there are any conditions attached, including the waiver of certain claims, should also be carefully considered.
• While it’s generally impractical and unrealistic to performance manage individuals in sporting roles, particularly in circumstances where a swift exit is required, employers should consider at least some level of documented ‘process’, such as records of conversations following poor performance, and evidence of loss of trust from the Board, the team, or fans.

Guaranteed hours

There has been long-standing dissatisfaction from representative bodies and trade unions over zero hours contracts. However, given the seasonal nature of sport and flexible fixture calendars, such contracts are common and there’s often a desire for flexibility from the individual worker’s perspective too.

The ERA 25 introduces a duty on employers to offer a guaranteed number of hours’ work to individuals who have worked, on average, a certain number of hours over a defined reference period. It will apply to zero hours workers, low hours workers and agency workers.

The specific detail, such as the threshold number of hours, the length of the reference period, and the form of the offer, will be set out in future regulations. Compensation for shifts which are cancelled, moved or curtailed at short notice will also be introduced.

These changes are expected at some point 2027, but with a large amount of detail still to be clarified it is difficult to prepare. However, employers may consider auditing their use of zero-hours, casual and agency staff, to gain an understanding of working patterns (especially those who have built up a ‘regular’ pattern over time), so that the potential additional cost can be factored in and other options, such as fully outsourcing certain functions, can be considered.

Third party harassment

The ERA 25 will introduce liability on employers for the harassment of their workers by third parties, unless they have taken all reasonable steps to prevent the harassment from occurring. Harassment is a broad concept and can relate to any protected characteristic under the Equality Act 2010 (such as race, sex, gender, sexual orientation).

The change is expected in October 2026. There is already an obligation on employers to take reasonable steps to prevent sexual harassment of their workers (including from third parties), which will be strengthened at the same time.

This is particularly relevant to the sporting world, where we still often see players, coaches and stewards exposed to hostile environments, including racist abuse incidents involving ‘fans’.

Reasonable steps might include:

• Signage around the stadium and specific training for stewards and match-day staff on how to deal with incidents.
• Clear communication of codes of conduct and ‘zero-tolerance’ messaging (including through ticketing arrangements).
• Swift and appropriate action when complaints arise.

Risk assessments should be used to identify situations where staff may be exposed to an environment in which they are vulnerable to harassment, to guide what additional steps may be reasonable. At a minimum, training should be rolled out and regularly refreshed, policies and incident reporting processes should be clearly communicated, and third parties should be required to sign up to contractual provisions or codes of conduct which govern their interaction with staff.

How we can support you

If you need support with implementing the new employment rights in your organisation, please get in touch with Charlotte Smith or Hugo Adams.