A wealth of proposed employment changes could end up creating “major new costs” for beer and brewing, the British Beer and Pub Association has warned

The Employment Rights Act 2025 received Royal Assent in December 2025 and with it, brings major changes to UK labour laws with the government expected to roll out these rules across 2026 and 2027.

However, the BBPA has urged the government to protect flexibility for both employers and workers. They said the costs from the changes will “further squeeze already wafer-thin margins” as pubs and brewers continue to grapple with eye-watering costs.

The BBPA added that the new changes could not only “undermine growth across the sector” but also potentially end up hurting the workers it’s meant to benefit if, to mitigate the changes, businesses need to restrict job opportunities and hours.

Emma McClarkin, CEO of the British Beer and Pub Association, explained: “This sector is only possible because of the brilliant workforce behind it. Pubs and brewers want to treat their staff fairly but, to do so, they need to be in a position to keep people in those jobs – as well as give opportunities to those who want to work in our amazing industry.

“Not only that, but we know employees value and appreciate the flexibility of their roles, so any changes that stop that might end up backfiring and hurting the people it’s meant to benefit.

“We think a proportionate, request-based system would both help workers and help the sector remain viable and the backbone of the job market.”

The association added that it is calling for a “proportionate response” that would see employees who want guaranteed hours able to request them based on their working patterns, which would preserve operational flexibility for businesses and choice for staff.