Employment Rights Act 2025 - what comes next?

Further changes under the Employment Rights Act 2025 are coming into effect throughout 2026 and 2027. We look at the key reforms’ employers need to know about and what they mean for businesses, from longer employment tribunal claim periods and stronger sexual harassment prevention duties to changes to unfair dismissal and trade union rights.

The first wave of changes under the Employment Right Act 2025 are already with us.  For employers, the story is far from over. If 2026 has been about introducing the new framework, 2027 is likely to be the year in which some of the Act's most noticeable changes reach day-to-day employment practice. 
 
When the Act became law last December, it set in motion one of the most significant programmes of employment law reform in recent years. 
 
Earlier this year, we looked at the first changes that took effect under the Act including changes to statutory sick pay, family leave and collective redundancy protection. 
 
Now as we enter the final months of 2026, the next stage of implementation is beginning. The changes we will face now will be quite significant for both employers and employees, but from an employers' perspective, these changes could place more risks and responsibilities on them. 

What should employers have on their radar? 

More time to bring a claim 

On 1 October, the time limit for bringing many employment tribunal claims increased from 3 months to six months. This change would apply where the relevant act, omission, or other specified date occurs on or after 1 October 2026.  The previous time limit would continue to apply, however, where the relevant date falls before 1 October 2026. 
 
A longer limitation period may mean that disputes remain live for longer before a claim is issued. In this instance, good record keeping and the need to follow process thoroughly becomes increasingly important. 

The employer's duty to prevent sexual harassment gets stronger 

From 30 October 2026. employers will be required to take "all reasonable steps" to prevent sexual harassment of their employees. Employers will also be under an obligation to protect their employees from Third party harassment.
 
There is therefore a greater emphasis on prevention rather than sanction.
 
A policy sitting in the Company's handbook would unlikely be enough and employers would need to think about how their policies apply in practice. Are staff sufficiently trained? How would risks arising from Third parties be managed and considered? 

More development of Trade Union rights

From 30 October 2026, more trade union reforms will take effect.  This will involve strengthened rights of access for trade unions, changes to the recognition and derecognising process, new rights and protection for union representatives, and extended protection against detriment for taking industrial action.
 
This change makes it worthwhile to review existing arrangements and ensure that managers are aware, and understand, the developing framework.

Reduction of the qualifying period for ordinary unfair dismissal

From 1 January 2027, the qualifying period for ordinary unfair dismissal will be reduced from 2 years to 6 months. The statutory cap on compensatory awards for unfair dismissal will also be removed. 
 
For an employer, this will mean that decisions made early in a team member's employment will carry greater potential exposure.  They will need to place more importance on recruitment, probation periods, performance management process, and documentation.

More changes in January 2027

January will also see the introduction of the new fire and rehire protections alongside a duty to inform workers of their right to join a trade union. 
 
January is not the end of the process and further measures are scheduled for 2027. Some of these changes include mandatory gender equality and menopause action plans, enhanced dismissal protection for pregnant women and new mothers, changes to flexible working, changes to bereavement leave to include pregnancy loss, further collective redundancy reforms, and a guaranteed hours’ regime. Changes in the use of NDA’s in harassment and discrimination are also expected during 2027.

Support where needed

With so many changes arriving at different points, employers need to know when each change applies and what needs to change within the business as a result. This may mean updating contracts, policies, and handbooks for some, and reviewing existing management practices and internal processes for others. 
 
HCB Solicitors can help you to prepare, adapt, and remain compliant for the changes ahead.  If you need some guidance, we are here to support. Please get in touch with our team to start the process.