After months of consultation and phased implementation, some of the significant Employment Rights Act reforms affecting employers and employees will come into effect in October 2026.
Businesses should use the months leading up to implementation to review their policies, procedures and management practices.
October 2026: The Key Changes
Claim Time Limits
The most immediate change for employers is the extension of the Employment Tribunal limitation period. Currently, employees have three months less one day from the “act complained of” (for example, an act of discrimination, or the date of dismissal for unfair dismissal claims) to start the process of taking legal action against their employer.
This limitation period will soon double, though, providing eligible individuals with up to six months to bring most claims. For employers, this likely means retaining employment records and being vulnerable to potential claims for longer.
Trade Union Rights
From 30 October, various measures relating to trade unions will also be implemented. In simple terms, these reforms are intended to make it easier for trade unions to organise workplaces and to give workers and union representatives greater legal protection. For many small businesses that do not currently have a recognised union, the day-to-day impact may be limited, but employers should still understand the changes. In particular, employers will need to prepare for:
- Informing workers of their right to join a trade union
- Strengthened trade union access rights
- Additional protections for trade union representatives
- Greater protections relating to industrial action
- Reforms to recognition and derecognition procedures
Harassment Protections
The protection against harassment for employees is another change that is due to take place on 30 October. Employers will be expected to take “all reasonable steps” to prevent sexual harassment. This differs from the current obligation to simply “take reasonable steps” (which has been in place since October 2024). The word “all” indicates a higher threshold, which would require employers to take proactive, rather than just reactive, measures.
The reforms also introduce an obligation on employers not to permit the harassment of their employees by third parties. Third parties could include customers, clients, suppliers or contractors, for example. The government will have powers to introduce regulations setting out evidence-based preventative measures in the future.
A full timeline of the changes is set out on the government website.
What Should Small Businesses Do Now?
Although many of the Employment Rights Act reforms won’t require businesses to overhaul their operations overnight, the months leading up to October 2026 are an ideal opportunity to review existing employment practices and ensure they remain fit for purpose.
Contract and Policy Reviews
Employers can begin by reviewing their template employment contracts, staff handbook and workplace policies to ensure that they are aligned with the latest legal requirements. In particular, the most relevant policies could include those relating to anti-harassment, grievance, disciplinary and whistleblowing. These should be updated to reflect the enhanced duty to prevent sexual harassment and the new protections relating to third-party harassment.
Companies should also prepare to meet their new duty to inform workers of their right to join a trade union. This could be incorporated into onboarding materials, employment handbooks or other written information provided to new starters.
A Proactive Approach to Preventing Harassment
The government has indicated further guidance about what counts as “all reasonable steps” will be published in 2027, meaning employers will need to comply with this higher duty before full guidance is provided. That said, such wording exists elsewhere in the Equality Act 2010 and could be taken to mean conducting risk assessments, having clear policies, maintaining strong reporting lines and having effective complaints processes. Notably, the Equality and Human Rights Commission has previously published the “Employer 8-step guide: Preventing sexual harassment at work,” and this may well be taken as an indication of what employers would be expected to do.
A good starting point likely includes carrying out a workplace risk assessment to identify where harassment could occur and which employees may be most at risk. For many SMEs, higher-risk situations may include customer- facing roles, lone working, off-site meetings, business travel or work-related social events. The assessment should be tailored to the business rather than adopting a one-size-fits-all approach and should be reviewed regularly as working practices evolve.
Training
Policies alone are unlikely to demonstrate compliance, though. Regular, practical training should be provided to employees at every level of an organisation, including managers and senior leaders, on how to recognise and report harassment, how managers should respond to complaints and the additional responsibilities relating to third-party harassment. Keeping records of when training was delivered and who attended may also help demonstrate that reasonable preventative steps have been taken.
Strengthened Record-Keeping and Reporting Procedures
With the time limit for most Employment Tribunal claims increasing from three to six months, employers should ensure employment records are accurate, consistent and retained appropriately. Records relating to grievances, disciplinary action, investigations and workplace complaints may become even more important if disputes arise several months after an incident.
Keeping Up-To-Date
The measures outlined above should be viewed as good practice rather than a definitive list of legal requirements. What employers are expected to do will vary depending on the size and resources of their business and may evolve as further regulations, official guidance and Employment Tribunal decisions clarify how the new duties should be applied in practice.
While these October 2026 reforms have been confirmed, the Employment Rights Act 2025 is being implemented in stages. Employers should continue to monitor government guidance and any further regulations, particularly in relation to the evidence-based steps that may be introduced to help employers meet their duty to prevent sexual harassment.
Obtaining Specialist Advice
If a business wants to ensure it remains compliant, obtaining specialist legal advice is recommended. Doing so helps ensure that its position is clear and that the most appropriate action is taken in the future.
