Last week, Meta confirmed that Instagram will require its US employees to work from the office five days a week in order to create a “winning culture”.

It’s one of the toughest RTO policies in Big Tech, alongside mandates from Amazon and Dell. And while UK SMEs don’t have to follow in US tech giants’ footsteps, the news offers a moment to reassess what’s working, and what workplace supports growth in the new year.

As founders plan their 2026 setups, they might be weighing up the rising costs of office space against the benefits of in-person productivity, and wondering whether their hybrid arrangements still serve them.

The ‘return to office’ panic is over, but the debate isn’t

According to a Business Insider report, Head of Instagram, Adam Mosseri recently circulated an internal memo with the news about the end of WFH. From February, all US employees need to return to the office full-time, despite space constraints in key offices like New York.

The past few years have seen various businesses return to in-person working. Brands such as John Lewis, Lloyds’ Bank, and Morrisons have all decided to call time on homeworking.

SMEs in the UK still seem fond of a moderate approach, with many settling into a happy medium of two to three days per week. According to the ONS, 27% of UK workers work a hybrid arrangement, with a further 13% working fully remotely.

Largely this is due to the culture question. Flexible working has become a firm fixture of the modern workplace, and for many new hires, it’s an expectation. Companies pushing for full-time office presence often face resistance or backlash from employees.

That said, hybrid isn’t without its flaws. Small businesses still run into difficulties onboarding junior staff, keeping culture alive when people rarely overlap, and less-than-ideal collaboration as teams juggle Slack, Zoom and asynchronous tasks.

In an effort to stave these issues and create a “winning culture,” Messori reportedly suggested that Instagram will need to also make other changes, such as scrapping unnecessary meetings and replacing them with clear objectives. He added that 121 meetings should be biweekly, and that staff should be able to decline meetings they feel aren’t necessary.

Forget culture, is office space a cost burden?

One of the major deterrents for UK founders setting up full-time offices remains rising costs. Commercial rents in London and major cities are surpassing pre-pandemic rates and long leases tie up cash flow.

Utilities, service charges and business rates have all risen, with energy bills increasing further this month once the new nuclear levy has come in. For a small business, an office can quickly become one of the heftiest expenses.

But many believe an office is worth the money. A fixed, shared physical space supports stronger team cohesion, faster decision-making, more creative problem-solving, and sets clearer boundaries for newer employees.

So maybe the question isn’t as binary as “office or no office?” but rather, “what type of office makes sense now?”

You might opt for a more modest, yet permanent base, coworking memberships instead of traditional leases, or strategically reserving office space for necessary collaboration.

What should bosses take from Instagram’s decision?

A five-day mandate won’t fit most UK startups, and it doesn’t need to. But the underlying message in Instagram’s announcement remains the same: whatever your decision, be intentional about how and why your team works in person.

Instagram has emphasised fewer meetings, more hands-on collaboration, and more time spent building and testing rather than presenting. Any SME can adopt these benefits, without forcing everyone into the same room every day.

As you plan for 2026, the best strategy is likely somewhere in the middle. Adaptable, cost-effective work models that support culture and collaboration without draining budgets should be the goal for small businesses, rather than keeping pace with tech giants.

Don’t let the name fool you. “Friendly fraud” is anything but friendly.

In fact, it’s something that’s been deeply affecting hospitality businesses across the UK, with firms being hit with high chargeback costs and lost revenue due to dishonest claims.

What might look like a simple dispute on the customer’s end can quickly spiral into lost income, administrative headaches, and hours spent fighting charges that should never have been reversed in the first place.

As the issue grows, hospitality firms are finding themselves forced to balance providing good customer service with the need to protect their businesses from increasingly common — and costly — fraudulent claims.

What is friendly fraud?

Friendly fraud — also known as chargeback fraud or first-party misuse — is a type of scam where a customer makes a purchase with their credit card, receives the goods or services, and then later contacts their bank to dispute the charge, claiming it was fraudulent or unauthorised.

In hospitality, friendly fraud often takes the form of disputed meal charges against a restaurant business, room fees for a hotel, or cancellation and no-show charges.

Sometimes, friendly fraud can be accidental, such as when someone forgets they made a reservation, misunderstands hotel or restaurant policies, or doesn’t recognise a charge from a third-party booking site.

Either way, beyond the direct cost, the increase in friendly fraud can add to more administrative work, strain customer service resources, and even raise insurance or processing fees for the business.

How is friendly fraud affecting hospitality businesses?

The rise in disputes and chargebacks is putting significant strain on businesses that are already operating on tight profit margins, and it’s expected to get worse in the next year.

According to a report by Chargeflow, there is forecasted to be a 40% increase in friendly fraud cases by 2026, with global chargeback volume expected to reach 337 million transactions.

Meanwhile, The Fintech Times reported that just last year alone, UK merchants lost a total of £128m to friendly fraud.

The effects are especially stark for small businesses. Nima Safaei, owner of a local Italian restaurant in Soho, told The Telegraph that chargeback fraud has cost his business £5,000 in just three months.

Hugo Remi, CEO at payment solutions company Cardaq, says the growing volume of chargebacks is creating yet another pressure point for already struggling hospitality firms.

“British high streets are failing amid rising overheads and less expendable income from potential customers,” Remi comments. “For hospitality businesses especially, customers may only visit once. This makes friendly fraud particularly hard to track and dispute.”

How to address friendly fraud in your business

To address friendly fraud properly, businesses should create clear and visible policies outlining cancellation rules and service charges at the time of booking or order, and make sure they are communicated through channels like booking pages and confirmation emails.

You should also keep detailed records of transactions, including receipts, timestamps, and digital logs, so that you have evidence if a dispute arises.

Additionally, secure payment methods like pre-authorisations or 3D Secure can help reduce unauthorised claims, as they add extra verification steps (such as two-factor authentication), creating clearer proof that the customer actively improved the transaction.

And if you are hit with a chargeback, having a proper process that gathers evidence and responds quickly can help improve your chances of winning a dispute.

Remi also added that the financial services industry should collaborate more with hospitality businesses, and have “firmer penalties”, which prohibit bad actors from payment services.

“While not all chargebacks are sinister, we must be hot on the heels of actors that are caught. The patterns are there; a more secure, transparent, business-first payments industry can act on them.”

Discover the ales and ails of hospitality

Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

Read Whining and Dining

Luxury fashion and AI aren’t always a good mix — just ask Valentino.

The brand’s latest Instagram campaign promoting a handbag has sparked a wave of criticism online, due to its peculiar visuals and uncanny effects — which have been labelled “AI slop” by disgruntled viewers.

The Italian fashion giant is just one of many brands to face backlash for the use of AI-generated ads, underscoring the risks that today’s companies take when they make use of the technology in digital marketing.

For smaller businesses, it’s a cautionary tale that taking shortcuts in content creation can have big consequences for audience perception. 

Valentino’s AI ad leaves viewers disturbed

On Monday, Valentino dropped a new Instagram video to promote its Garavani Devain bag. However, viewers were met with something that many described as “disturbing”.

The video starts with people seemingly emerging from a gold version of the handbag. It then transitions into a bizarre montage that splices models with Valentino logos and the bag, ending in an unsettling whirl of merging arms and bodies.

While Valentino labelled the video as AI-generated, it didn’t stop audiences from slamming the ad, with many describing it as “cheap”, “tacky”, and not matching the brand’s core values and typical luxury aesthetic.

One user commented: “They’re supposed to represent craftsmanship and prestige. This doesn’t represent any of that.”

“I wholeheartedly hate everything about this unsettling ad,” another added. “It’s a shame classic fashion brands are using such clumsy and stupid AI advertising now.”

The trouble with AI marketing

Valentino is just one of many brands turning to generative AI in marketing, and like others, it has been met with widespread disapproval from consumers.

In early November, Coca-Cola released an AI-generated Christmas campaign, despite the controversy it faced last year. While the ad required 100 staff members and 70,000 AI clips to produce, it was largely slated as “stiff” and “uncanny”.

Earlier in the summer time, clothing brand Guess also faced backlash for featuring AI models in a Vogue campaign. 

The speed and cost-effectiveness of generative AI are what make the technology attractive to companies, and many UK businesses have naturally bought into these benefits. Research reported by ManagedIT found that over half of UK marketers have used AI generators in the past 12 months, with 39% specifically using video or animation tools.

But as seen in many cases, these developments come with a risk to customer trust. Kantar’s Media Reactions 2025 report reveals that only 38% of consumers are excited about the use of AI in advertising, while 47% simply don’t trust the technology.

AI can help, but humans still hold the key to customer trust

So, what can SMEs learn from this string of AI ad flops? Smaller marketing teams can benefit greatly from generative AI. But it should be used as a tool, not a crutch.

AI tools can help with tasks like drafting social media posts, brainstorming ad ideas, or creating simple visuals — all of which can save time and resources. 

However, being over-reliant on the technology to produce creative assets can make campaigns feel impersonal, which in turn risks alienating customers – particularly at a time when AI is still an emerging technology. 

“The whiff of slop will turn off your audience entirely,” Jake Atkinson, Director of Growth at mortgage technology firm MQube, says. “Why would people engage with a brand if they feel the brand can’t be bothered to engage with them personally?”

Meanwhile, Megan Dooley, Head of Brand at TAL Agency advises that businesses should “focus on gaining a true understanding of your audience” and learn about the channels they use to “deliver meaningful content on a regular basis.”

“Where AI comes in handy here is through saving time or providing inspiration,” Dooley adds. “But it’s that human personal touch that builds trust and long-lasting connections.”

UKHospitality is warning of steep business rates hikes over the next three years as the detailed analysis of the impact of the Autumn Budget is shared.

While the Chancellor did announce a reduced multiplier and transitional relief for business rates, the hospitality body is claiming that the average pub business will still see a 15% rise in their rates bill next year, amounting to an extra £1,400.

This figure is also set to increase each tax year, meaning, in total over the three years, an average pub will pay an extra £12,900.

What did the Chancellor announce for hospitality businesses?

The minimum wage rise of 4.1% was confirmed though this came as no surprise – nor was the re-commitment to licensing law reforms. However, for the majority of businesses in the hospitality industry, the laser focus was on business rates.

There has long been dissent that these rates are crippling businesses; with big names, including Co-op, warning of potential closures and job losses if reform was forthcoming.

In July, the CEO of pub chain, Greene King, urged the Government to rethink how it enforces business rates, and urged for a switch to business rates taxes charged on profits, rather than on property.

This didn’t come to pass. Instead, the Government is to levy a business rate surcharge on large commercial properties. This was blocked earlier this year but is now set to become law.

It will impact commercial properties worth over £500k and will be paid by larger firms, like warehouses and supermarkets. The Government also announced that it will fund a permanent discount for over 750,000 smaller retail, leisure and hospitality (RLH) properties.

What does this mean for businesses?

UKHospitality has crunched the numbers and says that, despite the discounts and relief, hospitality businesses are still in for higher business rates.

It honed in and says that in 2027/28, an average pub’s rates will be £4,500 higher than today, and in 2028/29 £7,000 higher. This is a 76% increase. There are reports too that this is a conservative estimate.

ITV News quoted one west London pub owner who said that his costs “…will increase from around £2,500 to more than £20,000 per year, while another said he will have to pay 92% more in business rates than last year”.

For hotels, it is bleaker with a 115% hike. A hotel will be paying an extra £28,900 in rates next year. In 2027/28, it will be £65,000 higher than today and in 2028/29 £111,300 higher. In total, over three years, an average hotel’s rates bill will increase by £205,200.

The hospitality association argues that businesses with huge spaces – like online retailers and supermarkets – will actually be hit less severely.

“The rates bill for a distribution warehouse, the likes used by online giants, will have only increased by 16%, an office building will have only increased by 7% and a large supermarket by only 4% by 2028/29”, it reports.

What do hospitality businesses want?

UKHospitality is urging the Chancellor to increase the level of business rates discount from 5p to 20p, and says this was previously proposed and would be permitted by law.

Kate Nicholls, Chair of UKHospitality, explained: “The Government promised in its manifesto that it would level the playing field between the high street and online giants. The plan in the Budget to achieve this is quickly unravelling, and will deliver the exact opposite.”

She continued: “We repeatedly warned the Treasury ahead of the Budget that hospitality would be uniquely impacted by significant increases to rateable values, due to the pandemic impacting previous valuations. This had to be factored into the level of business rates discount it offered the sector.”

While business owners now sit down to face what potential costs are incoming, they will be hoping that the Chancellor takes heed and revisits the reforms; as many are concerned that they have not gone far enough to save a beleaguered industry.

Katie Scott - business journalist

Katie is a business and technology journalist with over two decades of experience covering the operational and financial challenges of scaling enterprises. A regular contributor to leading titles including Startups.co.uk and tech.co, her work directly addresses the topics most critical to small business audiences including business finance, operational efficiency, and FinTech innovation.

The shopping frenzy has momentarily calmed down after Black Friday, and businesses from ecommerce to hospitality are now counting their takings to see if it lived up to their hopes.

Good news, a report from Barclays suggests that Black Friday was the busiest day of the year so far for retailers; with transactions on November 28 reaching a 2025-high, and up 62% on the average.

Encouragingly, hospitality businesses, among which confidence has been reported to be low for months, have also enjoyed a boom off the back of the sales, with customers rushing to their high streets to grab a bargain.

Sales draw the crowds

The Barclays report, which saw 2,000 UK adults surveyed between October 24-28, revealed that food and drink transactions saw a Black Friday boost of 28.9% versus the average day this year.

This reflected an increase in footfall, which was supported by data from MRI Software. It shared that UK retail destinations saw a 6.7% boost in visitors in the week of Black Friday as compared to the week before.

This broke down to an 8.2% increase in high street visits, a 6% boost for shopping centres and a 4.1% rise in footfall to retail parks.

Jenni Matthews, senior brand, PR and content manager at MRI, said: “We’ve seen two solid weeks of rising footfall heading into Black Friday, and the energy was unmistakable, particularly between 5pm and 8pm on the day itself, when visits jumped 29.2% week on week as shoppers combined bargain-hunting with festive nights out.”

Confidence still wavering

However, the Barclays report did also reveal that consumers are still nervous of big spending as the cost-of-living crisis rumbles on. This means that Black Friday, while a chance to get a bargain, is not perhaps as exciting as in easier times.

The data revealed a 2.2% decrease in sales for the sales week and 1.9% on Black Friday, as compared to last year. Nearly half (44%) of respondents said that they do not look forward to the day as much as they used to.

Some even questioned the value of Black Friday and Cyber Monday deals with 68% saying that they are doubtful deals are as good as they seem to be.

The results also show that consumers are conscious of over-buying, with 65% stating that they think these sales events encourage unnecessary spending.

Online the big winner

While the MRI Software data painted a positive picture for Black Friday footfall as compared to the week before the sales started, the team also zoomed out and discovered that visitor numbers were down on the previous year.

While it wasn’t a dramatic drop – 2% on Black Friday and 7.2% for the week as a whole – this reflects that the ease of online is still compelling for many shoppers. That and people are still being cautious about spending money.

KPMG confirmed that consumer spending – off and online – is still soft, despite moments of buoyancy. The consultancy has predicted GDP growth of 1% for 2026 and 1.4% for 2027.

“The outlook for growth in 2026 is subdued, reflecting the impact of a cooling labour market and weak household spending,” KPMG’s chief economist, Yael Selfin, told The Guardian.

With confidence still low, and most hospitality businesses expecting a larger tax burden this coming year after the Autumn Budget, many businesses will now be hoping that customers will continue to head to the high street this December.

Despite declining optimism, they will need to catch the attention of those customers who do head out and take advantage of the increased footfall even if it doesn’t hit last year’s figures.

TikTok has launched its new Direct Message AI Chatbot or TikTok Lead Genie to“help businesses turn conversations into conversions more efficiently and effectively”.

The social media platform continues to push hard for eCommerce businesses, launching its AI-powered Symphony Creative Studio in June and the Selling Live tool in September, which gives creators with over 1,000 followers a platform to promote and sell products via live video streams.

This latest tool is also built on immediacy, as it deploys an AI chatbot to respond in real time to customer enquiries in TikTok’s built-in messenger feature.

What is the TikTok Lead Genie?

This tool is essentially an AI-powered customer engagement chatbot. It can reach out to customers 24/7 through DMs “all while maintaining a natural, human-like conversation,” says TikTok. What this means is that businesses can be “always on” to respond to queries.

TikTok adds that the chatbot is trained on “brand content” or a company’s “knowledge base” so this means that it should be on point for brand tone and accuracy of response.

It adds that the chatbot is designed to be “paired with TikTok Direct Messaging Ads and the Lead Optimization Goal,” so that insight can be “captured” from each conversation. This, TikTok says, is then used in “a feedback loop that strengthens Messaging Ads’s targeting and outcomes”.

What are the advantages?

The big draw is time saving. TikTok says that it worked with a leading aesthetics business in Vietnam called DrHoat. It reports that the trial reduced costs per lead by 80%, saved 300 daily manhours and generated more than $23,000 in daily revenue.

TikTok also suggests that the process to set up the chatbot is easy. The SI chatbot can be activated directly in the platform’s Business Suite. Businesses then need to set up “a custom knowledge base tailored to their business”. It states: “The richer the content provided, the smarter the chatbot becomes and the more valuable the leads it generates.”

However, there is no mention in the release as to how this data is used beyond training your business chatbot, which is a little concerning for a company that is well done – like most AI-leaning businesses – to harvest data heavily.

Keep the human touch

As with all AI, there is a chance of it delivering incorrect or hallucinated information. There is also the chance that its “humanness” won’t be as persuasive as TikTok insists, which could put off potential customers.

Brands wanting to deploy the chatbot need to be meticulous about the training data that they supply. After all, mistakes in this will be replicated, and even amplified, by the AI technology.

Business owners will also need to keep a close eye on exchanges to make sure that company voice and standards are maintained. While this may seem to negate the potential time-saving advantage, it is essential to ensure each conversation is on point and reflects the company in a positive light.

If the knowledge base provided is accurate and well-organised, companies will be able to use the AI chatbot to maximum impact; but the human touch will still remain essential.

In today’s uncertain job market, more employees are choosing job security over progression, new research suggests.

According to data from tech talent specialist La Fosse, many workers in the UK are holding onto roles they may have already outgrown, a trend known as ‘job hugging’.

It’s the latest in a string of employment shifts triggered by the tougher hiring climate, rising living costs, and ongoing uncertainty around the effects of AI on jobs.

Similar to the “quiet quitting” wave, job hugging can quietly undermine company culture long before bosses even notice something’s up.

What is job hugging?

Job hugging is when employees cling to their current roles despite having the skills, ambition or potential to move onto pastures new. It’s driven by a desire for security or fear of change – something that employees have buckets of in today’s harsh jobs landscape.

La Fosse found that 55% of workers are holding onto roles they may have outgrown. The younger generation are clinging to their roles even tighter, with job hugging prevalence rising to 65% in 18 to 34-year-olds.

Claudia Cohen, Director of the Academy at La Fosse, says the phenomenon is less about apathy and more a knock-on effect of “broader insecurity”.

“Job hugging isn’t just about people being cautious. It’s about comfort over career,” she adds. “When someone stays in a role they’ve outgrown, it can hold back the rest of the team, block internal opportunities, and slow down innovation.”

Cohen notes that job hugging can lead to teams feeling stagnated, stuck, and negatively affect the company’s ability to adapt to changes.

Why are employees hugging their jobs?

La Fosse notes that rising economic pressure is the biggest factor behind job hugging. With living costs still high, many employees simply can’t risk a move or probation period that isn’t guaranteed to turn into a permanent role. Many feel safer sticking with roles they’ve long outgrown.

There’s also a growing generational divide. Younger workers have fewer entry-level positions to choose from and much slower progression than their predecessors.

With this in mind, it’s perhaps unsurprising that 65% of 18–34s now choose security over taking the next leap in their career.

Another bleak reality is that AI adds another layer of uncertainty. As automation flips roles upside down, career paths feel harder to predict, so employees cling to what they know.

The issue might feel the most pronounced in industries with existing job shortages, like hospitality. With a tight job market, job hugging can compound the pressures hospitality professionals are already facing.

How can employers respond?

Job hugging requires intervention, as when left ignored, it can stall productivity, delay projects, and drain momentum. Claudia Cohen stresses that bosses shouldn’t push loyal people out, but create an environment where growth feels safe and even expected.

Regular career conversations will allow leaders to spot who might be feeling stuck and why. Purposeful upskilling helps experienced employees confidently move into new roles, leaving space for new talent to join the ranks.

Likewise, refreshing team structures, by making new hires, clear lateral moves or defined progression routes can also reignite stagnated energy.

Retaining high-quality talent is still important, but leaders need to balance loyalty with innovation. If a role or team structure is blocking an opportunity, it may need a rethink.

In an innovative company, mobility should be central to the culture, not optional. Even with financial pressures highlighted by last week’s Autumn Budget, organisations that proactively address job hugging will stand a better chance of keeping their teams motivated.

Black Friday is over, which means the Christmas rush has well and truly begun. If the gift-buying panic is creeping in, you’re likely not alone. But don’t worry, we’ve done some of the scouring for you.

Every year, we publish the Startups 100 Index, our ranking of the most promising ‘ones to watch’ startups in the UK.

Based on this year’s list, we’ve put together a collection of 11 innovative gifts you can buy from the UK’s top startups that your loved ones probably never knew they wanted.

1. Gut-loving granola from Bio&Me

For the health nuts, Bio&Me’s gut-friendly granola blends prebiotics, probiotics and tasty ingredients for a breakfast that’s good for your tummy — and your taste buds.

2. Gift card for sustainable fashion from By Rotation

Unlike resale platforms, By Rotation rents out items that are worth over £100, making it an accessible option for high-end pieces.

Sustainable fashionistas can assemble designer looks without the high price tag, while reducing their consumption, a win-win for both wardrobes and the planet.

3. Creepy-crawly pet food from Grub Club Pets

Grub Club Pets is a sustainable pet food brand that creates meals out of insect protein.

Did you know that pet food is responsible for over 100 million tonnes of CO2 equivalent (CO2eq) emissions every year? This makes Grub Club ideal for eco-conscious pet owners who don’t want to compromise on nutrition.

4. Relaxing, alcohol-free beer from IMPOSSIBREW

As seen on Dragons’ Den, IMPOSSIBREW’s alcohol-free lager gives you a social buzz without the hangover thanks to its natural nootropics. And it tastes great.

Ideal for the sober-curious or health-conscious who aren’t ready to hang up their dancing shoes just yet.

5. Personal trainer mirror from MAGIC AI

MAGIC AI brings the gym into your bedroom with a smart mirror that corrects your form in real time.

It’s perfect for getting started on your January bod, without having to brave the winter weather. Heads up, this one isn’t cheap. It’s currently retailing at £949,  so it definitely doesn’t qualify as a stocking filler..

6. Plastic-free cleaning tools from Seep

Seep offers plastic-free sponges, scourers, and cloths. While it may not be the most glamorous Christmas present, it’s a necessity for any eco-warrior loved ones looking to rid their homes of dreaded microplastics.

7. Chef-quality convenience meals from STOCKED

STOCKED takes the stress out of meal prep with chef-cooked frozen food blocks delivered to your door.

Perfect for busy foodies who want tasty, flexible meals without having their fridge dominated by endless tupperware.

8. High-protein nostalgia from SURREAL

SURREAL is a cereal brand that pairs kid-approved flavours with the nutrition needed to fuel a busy adult life.

Perfect for anyone who wants to reconnect with their inner child over breakfast while still hitting their protein goals.

9. Kids’ clothes with Swoperz

Swoperz lets children aged 6-16 safely swap preloved clothes online, with parents managing subscriptions.

This gift will give kids the freedom to customise their own looks, without feeding into fast fashion.

10. Next-gen nappies from Peachies

Peachies nappies are 25% plant-based, ultra-absorbent, and help reduce CO₂ emissions.

Ideal for parents who want to raise little ones with a greener footprint, without compromising on hygiene or comfort.

11. Safe, sustainable women’s health products from Unfabled

Unfabled offers sustainable, non-toxic products designed for women at every life stage.

Think supplements, menstrual products, and self-care. A treasure trove for anyone seeking hormone and planet-friendly products.

We’ll be announcing the 2026 Startups 100 Index in the new year. Keep an eye on our site for the UK’s hottest new business Index, launching in January.

Last week, the government confirmed it will U-turn on its proposed changes to unfair dismissals, a major commitment under its Employment Rights Bill.

The Bill’s original plan was to give employees protection from unfair dismissal from their very first day in the job. But that protection will now kick in at six months, rather than day one.

It’s a major shift, since the Bill represents the biggest overhaul of employment law in years, with new legislation that will affect hiring, firing, sick pay, and parental leave.

Why the Bill is being revised — and what’s changed

While headline reforms, like day-one sick pay and parental leave, remain on track to be delivered, the government has backtracked on one of its most controversial proposals. Instead of “day-one” unfair dismissal rights, employees will first need to work a “qualifying period”.

Employees will need to work for six months continuously to benefit from protection against unfair dismissal, instead of from the first day, as initially proposed.

As it stands now, employees have to work for 24 months continuously to receive protection against unfair dismissal, except in cases of discrimination or ‘automatically unfair’ grounds for dismissal.

The compromise of six months is the result of weeks of negotiation involving ministers, business groups and trade unions.

On one hand, employers warned that day-one rights would make it harder to manage probation periods, while unions argued for stronger job security. The six-month model emerged as a middle ground.

Several other reforms from the original Bill will go ahead unchanged. From April 2026, employers will need to offer their staff:

• Day-one access to statutory sick pay (with no lower-earnings threshold)
• Day-one rights to parental and paternity leave

The Fair Work Agency is a new enforcement body that will serve to deal with breaches of the new Bill and offer combined oversight over regulators that currently work separately

SME bosses will therefore have more responsibility for compliance, but potentially simpler management of new hires in the first six months. Probation periods, performance reviews, and early dismissals will remain workable, though a tad more regulated than before.

What employers and SMEs need to do now

Employers should still start reviewing their HR processes sooner rather than later. The Bill is expected to receive Royal Assent imminently, meaning several elements will take effect quickly.

You’ll need to review your contracts and probation processes to reflect the upcoming six-month qualifying period. And, don’t forget to prepare for the upcoming changes to payroll and benefits.

As of April 2026, employers will owe staff statutory sick pay from day one of illness, with no lower threshold on earnings. Employees will also be allowed to go on parental and paternity leave from day one, which may affect workforce planning, temporary cover, and budgeting.

Small businesses that rely on flexible, seasonal or zero-hours staff should be extra careful. The Bill’s insistence on more predictable working patterns and limits on exploitative scheduling might mean that SMEs need to change how they hire short-term help or offer variable shifts.

That said, as the Bill moves through its final parliamentary stages, there’s potential for further “ping-pong” between the Commons and Lords, which could lead to further changes.

With this in mind, employers should stay tuned for guidance from legal and HR experts on how Acas and the incoming Fair Work Agency will affect hiring and people management.

‘Tis the season for dropshipping. In the run-up to Christmas, there’s no better time for dropshipping businesses to tap into the surging holiday demand.

Shoppers are in full-on gift-hunting mode, impulse buys are at an all-time high, and the right product can blow up overnight.

That said, it’s easy to get caught up in the festive rush. With orders spiking, new products, and competitors popping up left and right, it can feel like a nonstop scramble. 

To help ease the seasonal strain, we’ve rounded up seven of the top products from leading dropshipping suppliers for December — all backed by real search data and market trends — to help you lock in those holiday wins.