The Employment Rights Bill – impact on rural businesses

Employers will face some of the most wide-ranging changes to workplace law in over a decade. While these changes apply across the board – and are covered in our wider article, rural employers, particularly estates, farms, and those reliant on seasonal or casual labour—face some unique implications.

Discover the key changes which are most relevant to rural businesses, with a particular focus on third-party harassment, guaranteed hours for casual staff, the end of “fire and rehire” practices, and the use of contractors or volunteers.

Third-party harassment: estates now liable for guests’ behaviour

One of the most significant developments for rural estates is the enhanced protection for employees against third-party harassment.

Under the new law, employers will now be liable for harassment by non-employees—including guests or visitors.

This is particularly relevant for estates that host events such as shooting parties or wedding functions where external guests or visitors interact with staff. There have already been real-world examples of unacceptable behaviour at such gatherings, and the risk of liability will increase significantly.

In addition to the previously introduced duty to take “reasonable steps” to prevent sexual harassment, the new law ramps this up to require all reasonable steps—both in preventing sexual harassment and third-party harassment more broadly.

What’s the risk?

An estate will be liable if a third party harasses the employee in the course of their employment and the employer fails to take all reasonable steps to prevent the third party from doing so.

While a failure to take all reasonable steps to prevent sexual harassment doesn’t automatically lead to a successful claim, if a tribunal finds harassment took place, the compensation award to an affected employee can be increased by up to 25%. For example, a £100,000 award could become £125,000.

What can you do?

• Conduct risk assessments to identify scenarios where harassment could occur
• Deliver up-to-date training to all employees, especially managers and frontline staff
• Establish clear reporting procedures through contracts and policies
• Post visible signage warning guests that harassment will not be tolerated
• Insert anti-harassment clauses into contracts with third-party suppliers and terminate relationships if they breach them

It’s also worth reviewing your employer’s liability insurance considering this extended responsibility. Speaking to a lawyer early is often far more cost-effective than dealing with a tribunal claim—and legal advice is protected by privilege (advice taken from HR professionals or estate factors won’t have that protection).

Guaranteed hours for casual and seasonal workers

Many rural employers—particularly farms and estates—rely heavily on seasonal and zero-hours staff. The Bill introduces a new duty to offer guaranteed hours contracts to those who regularly work the same pattern over a set reference period.

What does this mean?

If you have casual workers consistently working, say, 20 hours a week over several months, you will soon be legally required to offer them a contract reflecting that pattern.

This could significantly affect staffing costs, as it will guarantee pay and may reduce your flexibility.

“Fire and rehire” will be prohibited

The practice of “fire and rehire”—where staff are dismissed and re-engaged on less favourable terms—will now be considered automatically unfair dismissal, except in very limited circumstances where genuine financial difficulties can be shown and the change was unavoidable.

This is a major change for any employer considering team restructures, altering accommodation arrangements for live-in staff, or tweaking pay and conditions.

Key takeaway: Consider making changes ahead of the new law coming into force, if not you will need to consult with employees to reach agreement, and consider, whether existing employment contracts contain legally robust flexibility clauses that allow for adjustments.

Using contractors or volunteers? It’s not a free pass

Some employers may consider shifting to contractors or volunteers to avoid the reach of employment protections. But classification is not based on what the contract says, but on how the relationship works in practice.

Even those labelled “volunteers” may be deemed workers if they:

• Have a contract to perform services personally
• Receive benefits beyond “reasonable” subsistence or accommodation

So, if your volunteers are regularly performing tasks and receiving more than just meals or a bed, they could be entitled to statutory rights, including holiday pay—and, in some cases, protection from dismissal.

Mitigating this risk could include:

• Drafting volunteer agreements carefully
• Ensuring benefits remain within acceptable boundaries
• Keeping timesheets to monitor the extent and nature of their work

Family workers (e.g., relatives helping on a farm or estate) may be exempt in certain cases, but you should still assess whether their arrangement could inadvertently give rise to employment rights. Many of them won’t fall under this exception because the work they do will be conducted on a commercial basis.

How we can help

The Employment Rights Bill represents a fundamental shift in the obligations of employers. For rural businesses—especially those that rely on hospitality, seasonal workers, or complex staffing models—it is crucial to act now.

Anderson Strathern has a suite of ready-to-use templates and risk assessment tools tailored for the changes and assessment tools for employment status. It’s more affordable than you might think—and far cheaper than a tribunal.

Take proactive steps now and contact a member of our expert team or contact robin.turnbull@andersonstrathern.co.uk.