October 2026 brings significant reforms to UK employment law under the Employment Rights Act 2025, affecting Employment Tribunal claims, workplace harassment protections, and trade union rights.
Some changes took effect on 1st October 2026, with further measures commencing on 30th October 2026. These reforms form part of a wider government programme to strengthen workplace protections, increasing employer responsibilities and potential exposure to claims. Employers who fail to adapt to these changes may face heightened legal risks, reputational damage, and financial consequences.
Extended Employment Tribunal Time Limits
From 1st October 2026, the standard time limit for most Employment Tribunal claims, including unfair dismissal, discrimination, and unlawful deductions from wages, increases from three months to six months for acts occurring on or after that date.
This extension gives employees more time to seek advice and pursue claims, meaning employers may face proceedings long after disputes appear resolved. The extended timeframe increases the likelihood of claims being brought, potentially leading to higher legal costs and prolonged uncertainty for employers. ACAS Early Conciliation requirements remain unaffected, and some claims retain different time limits.
Key Recommendations: Employers should strengthen record-keeping around disciplinary, grievance, performance, and dismissal matters, ensuring documentation is comprehensive and accessible. Failure to maintain accurate records could weaken an employer’s defence in tribunal proceedings. Employers must also continue addressing concerns promptly using fair procedures to mitigate risks of escalating claims.
Strengthened Duty to Prevent Sexual Harassment
From 30th October 2026, the existing duty to take “reasonable steps” to prevent sexual harassment, in place since October 2024, is strengthened to require “all reasonable steps.” This raises the expected standard and shifts the focus to proactive prevention rather than reactive responses.
Employers must assess workplace-specific risks and implement appropriate measures, with reasonableness depending on factors such as organisational size and resources.
Non-compliance may lead to enforcement action by the Equality and Human Rights Commission (EHRC), which could include investigations, public sanctions, and reputational harm. Additionally, tribunal compensation may increase by up to 25% where the preventative duty is breached, significantly raising the financial stakes for employers.
Key Recommendations: Employers should review policies, provide regular training, conduct risk assessments, and ensure clear reporting procedures. Written policies alone may be insufficient; failure to demonstrate active prevention measures could result in liability.
Protection Against Third-Party Harassment
From 30th October 2026, employers face a new obligation not to permit harassment of employees by third parties such as customers, clients, or contractors. Employers may be held liable unless they can demonstrate that all reasonable preventative steps were taken.
This is particularly relevant to sectors with high public interaction, such as hospitality, retail, healthcare, and education. Failure to comply could result in tribunal claims, financial penalties, and reputational damage, especially in cases where harassment is widespread or systemic.
Key Recommendations: Employers should update harassment policies to address third-party conduct, review customer-facing procedures and contractual arrangements, and consider measures such as warnings or restricting access where necessary. The focus is on prevention rather than post-incident response, and employers who fail to act proactively may face increased liability.
Strengthened Trade Union Rights
From 30th October 2026, reforms strengthen trade union rights, including enhanced workplace access for independent unions (in person or digitally), changes to statutory recognition procedures, and increased protections for union representatives and employees involved in industrial action.
The access framework generally applies to employers with 21 or more workers, with disputes referable to the Central Arbitration Committee. Employers who fail to comply with these enhanced rights may face legal challenges, disruption to operations, and strained employee relations. Managers who are unaware of the strengthened protections for lawful trade union activity may inadvertently breach the law, leading to claims and potential penalties.
Key Recommendations: Employers should review procedures for handling access and recognition requests, ensure managers are trained on the updated rights, and foster constructive engagement with unions to avoid disputes escalating.
Looking Ahead for 2027
Further changes are expected in January 2027, including a reduced unfair dismissal qualifying period (two years to six months), removal of the compensatory award cap, and new restrictions on fire and rehire practices. Employers should prepare for these upcoming changes by conducting regular audits of employment practices and ensuring compliance with evolving legal standards.
Our Employment Law team provides practical advice and support to businesses on employment contracts, workplace policies, disciplinary and grievance matters, Employment Tribunal claims and wider employment law compliance.
If you would like advice on how these changes may affect your business, contact our Employment Law team today.
This article is general information about the law in England and Wales at the date it was published. It is not legal advice on your situation — for that, speak to us.
