The Employment Rights Act 2025 reforms continue to be implemented in phases, bringing significant change for employers across a wide range of workplace issues.

While some reforms have already taken effect, employers should be preparing for the next phases of ramped up changes due to come into force from October 2026 and into 2027. In this article we have outlined the reforms taking effect this October along with a helpful summary of the most impactful changes ahead.

From October 2026:

Employment Tribunal time limits

From 1 October 2026, the time limit on bringing a claim to the Employment Tribunal will increase from 3 months for 6 months. This will create more uncertainty for employers and represents an escalation in risk as employment decisions will remain open to challenge for significantly longer. On a more positive note, the extension will extend the time available for resolving disputes before a claimant’s deadline to submit a claim expires.

The change is likely to cause issues for employers with poor or inconsistent documentation. When informal conversations, performance concerns or customer-related issues are not properly recorded at the time, they may resurface months later when recollections are less clear and key individuals may have moved on. Employers should review document retention practices and ensure management records, investigation notes and correspondence are retained for appropriate periods of time.

Preventing sexual harassment

From 30 October 2026 employers must take “all reasonable steps” to prevent sexual harassment of employees, rather than “reasonable steps”. This represents a more onerous standard than the existing duty (in force since 26 October 2024), requiring employers to demonstrate they have taken every step they could reasonably be expected to take. Employers are expected to show ongoing proactive action such as risk assessments, regular training, clear zero-tolerance messaging, effective reporting mechanisms and evidence that concerns are addressed appropriately.

Preventing third-party harassment

From 30 October 2026, employers will also be under an obligation to not permit employees to be harassed by third parties, such as customers, clients or service users in the course of their employment. This duty applies to harassment related to protected characteristics under the Equality Act 2010. Employers will be required to take “all reasonable steps” to prevent such harassment. This changes how employers must approach harassment related to protected characteristics by third parties, making it a legal compliance issue that requires proactive risk management. Sectors where staff frequently come into contact with third parties, such as hospitality and retail, are likely to be particularly affected. For employees in customer or client-facing roles, prevention measures, training and clear reporting routes will be especially important, Read our article with practical advice on this new employer duty.

Trade union reforms

From 30 October 2026, qualifying trade unions will have a right to access employers’ workplaces for the purposes of meeting, supporting, representing, recruiting or organising workers, as well as for collective bargaining purposes. Trade union officials will not have access to organise industrial action. Trade unions will be able to request access and negotiate with the employer as to the form this takes, such as being digital or in-person. In addition, workers will receive enhanced protection from detrimental treatment for participating in protected industrial action, addressing a gap in existing protection where workers suffered sanctions short of dismissal.

What should employers do now?

These changes carry risks and employers should consider taking proactive steps as follows:

  • Review document retention policies and employment record-keeping procedures.
  • Conduct sexual harassment risk assessments and audit anti-harassment policies, reporting channels and training programmes.
  • Assess exposure to third-party harassment risks, particularly in customer-facing roles and implement measures to prevent this.
  • Identify who will manage trade union access requests and develop an internal response process to handle requests.
  • Review contracts, handbooks and management training to ensure they remain fit for purpose.

If you require any support with these changes please contact our Employment Team. We are already advising clients on these reforms through training, updated policies, contracts of employment and audits of existing documentation and systems.

What employment law changes come next?

Arguably the most significant changes are yet to come and employers should be thinking ahead about how to manage reforms like the reduction in the qualifying period for unfair dismissal to six months, flexible working request obligations and limitations on using zero hours contracts.

By the end of 2026

Changes to strengthening tipping law have been delayed from October 2026 to the end of 2026. Affected employers, such as in hospitality and tourism, will be required to consult with trade unions, workers’ representatives or their workers directly when producing and reviewing their written tips policy. After implementation, the policy will need to be reviewed every three years and employers must allow for an anonymised summary of staff feedback to be available.

January 2027

  • The obligation for employers to notify workers of their right to join a trade union via a written statement has been postponed from implementation on 30 October 2026 to 1 January 2027.
  • Currently bringing an unfair dismissal claim requires two years of qualifying employment, this will be reduced to six months on 1 January 2027. This will require employers to place greater emphasis on recruitment decisions, probation management and early performance management discussions. The reduction of the qualifying period will apply to any case where the effective date of termination (EDT) falls on or after 1 January 2027. 
  • From 1 January 2027 the cap on compensatory awards for unfair dismissal will be abolished significantly increasing potential financial exposure in unfair dismissal claims. This applies where the actual EDT is on or after 1 January.
  • From 1 January 2027, employers will face significant new restrictions on using “fire and rehire” tactics to impose changes to employment contracts. Dismissing an employee because they refuse to agree to changes to key contractual terms, such as pay, hours, pension arrangements, shift patterns or time off entitlements, will be automatically unfair in most cases.

There will be a limited exception where an employer demonstrates the changes are required to deal with serious financial difficulties threatening the future of the business. The Government is intending for this exception to apply in exceptional circumstances. Employers considering contractual changes should therefore focus on meaningful consultation and obtaining employee agreement wherever possible.

Anticipated during 2027

Workforce Planning

  • Guaranteed-Hours and Shift-Notice Rights: Employers will be required to offer qualifying workers a contract that reflects the hours they regularly work in practice as well as rights to reasonable notice of shift cancellations, changes and related compensation. These measures extend to agency workers with adaptations to reflect the tripartite relationship
  • Flexible Working Reforms: Flexible working will be strengthened for employees as employers will be required to identify the statutory ground relied upon and explain why they consider the ground to be reasonable in the circumstances. This change is due to take effect in Autumn 2027.

Family-Friendly Rights

  • Bereavement Leave: Bereavement leave, including for pregnancy loss before 24 weeks, will create an entitlement to two weeks of unpaid leave which must be taken within 56 weeks of the death. It is expected to take effect in April 2027. This includes all types of pregnancy loss before 24 weeks, including IVF embryo transfer loss and terminations, and will be available to the pregnant person, other parent or partner, intended co-parent and intended surrogate parents. This leave would be unpaid.
  • Enhanced Dismissal Protections Before and After Pregnancy: The Employment Rights Act 2025 will strengthen protection against dismissal for employees who are pregnant or have been pregnant, and those taking or returning from a period of statutory family leaveEnhanced protections are anticipated to significantly restrict employers in dismissing employees during pregnancy, maternity leave and a subsequent protected period. This is other than in certain specific circumstances.

Workplace Governance

  • Collective Redundancy: In collective redundancies there will be a new threshold test requiring collective consultation if there are either 20+ redundancies at one establishment or if another new threshold test is met. The new threshold test number of employees will be specified in regulations following consultation and must not be lower than 20 employees.
  • NDA Reforms: Employers will have important restrictions on using confidentiality clauses (often called non-disclosure agreements or NDAs) in relation to workplace harassment and discrimination. Generally clauses that try to prevent a worker from making allegations, or disclosing information, about discrimination or harassment involving their employer, colleagues, or the employer’s response to such issues will be void. Limited exceptions are anticipated to apply where specific statutory conditions are met. Employers will need to review settlement agreement templates, policies and workplace culture to ensure concerns can be raised, investigated and addressed in an appropriate way.

Equality and Inclusion

Mandatory Gender Equality and Menopause Action Plans: Employers with 250 or more employees will be required to have equality action plans in place setting out the steps taken to reduce the gender pay gap and support employees who are experiencing the menopause. Such plans have been encouraged on a voluntary basis since April 2026 and are expected to be mandatory from April 2027 (March 2027 for certain public sector employers). Not publishing a mandatory action plan may result in enforcement action.

Although some of these reforms will not take effect until 2027, employers should not wait until the implementation dates have arrived before preparing for them. Many of the upcoming changes will require amendments to policies, contracts, training and management processes. Early preparation will reduce legal risk and place employers in a stronger position to respond as the reforms come into force.

Please reach out to our Employment Team if you have any questions or if we can help.

This article was written by Amy Fancutt, Trainee Solicitor and Laura McFadyen, Partner in our Employment team.