As the Employment Rights Act 2025 (ERA25) reforms take effect, getting the everyday decisions right, and applying them consistently, will become even more important.
Reforms have already taken place, including changes to Statutory Sick Pay (SSP), Paternity leave and the introduction of the Fair Work Agency (FWA). If you have yet to take action against these and don’t know where to start please get in touch.
Assuming there are no changes to the government’s implementation timeline, further changes are due to take effect in October this year and continue into early 2027. As an employer, it’s important to ensure you are fully prepared and compliant ahead of these changes.
To make things simple, we’ve summarised the key changes. This will tell you what actions you must take, when and how as a compliant and caring employer.
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Increases tribunal time limits – 1st October 2026
What’s changing?
The time limit for bringing an employment tribunal (ET) claim will double from three to six months. Claim volumes are likely to increase as a result, and employers may find themselves defending matters where the underlying events occurred much further in the past.
How to prepare:
- Ensure clear, factual documentation and consistent processes
- Focus on early resolution
- Ensure defensible and strong decision making
- Establish robust record keeping practices
Sexual harassment reforms – 30th October 2026
What’s changing?
Employers already have a duty to take reasonable steps to prevent sexual harassment. From October 2026, that duty will increase. Employers will need to take all reasonable steps to prevent sexual harassment, including harassment by third parties. This faces a greater emphasis on preventative duty and action taken.
How to prepare:
- Refresh risk assessments
- Provide training and keep record of training logs
- Ensure safe and effective reporting paths
- Refresh policies – zero tolerance approach
Third-party harassment liability – 30th October 2026
What’s changing?
Employers will also be liable for harassment of their employees by customers, clients, contractors, suppliers and other third parties. This liability covers harassment related to all protected characteristics, not just sexual harassment. The duty is live from day one and employers must therefore proactively take steps to minimise the risk of such harassment occurring.
How to prepare:
- Review and update policies
- Provide training on third-party harassment
- Ensure safe and effective reporting channels
- Consider appropriate signage
Trade Union Changes – 30th October 2026
What’s changing?
A number of trade union changes take effect late October. Key changes include mandatory employer notices on union membership, new digital and physical workplace access for independent unions, expanded rights for equality representatives, and extended protections for workers taking industrial action.
How to prepare:
- Update Trade Union rights
- Update onboarding documentation
Tipping Laws – 30th October 2026
What’s changing?
Employers already need to distribute tips fairly and transparently. Employers will also need to consult workers or their representatives before introducing or changing a tipping policy. Employers will also need to keep their tipping arrangements under review – must be formally reviewed at least every 3 years.
How to prepare:
- Ensure managers are applying and explaining day to day tipping arrangements
- Create a policy
- Ensure policies are understood and adhered to
- Keep up to date records
Unfair dismissal reforms – 1st January 2027
What’s changing?
Employees currently need two qualifying years’ service to bring most ordinary unfair dismissal claims. From January 2027, ordinary unfair dismissal protection will apply after six months’ service. This covers anyone with 6 months service by January 2027; if you are hiring staff and have a 6 month probationary period, this will include them.
How to prepare:
- Refresh probationary period clauses and policies
- Establish robust probationary period processes
- Review onboarding process
- Ensure clear, factual documentation and consistent processes
- Robust record keeping practices
- Train managers on performance management
- Establish clear expectations and standards
Fire and rehire reforms – 1st January 2027
What’s changing?
Employers can currently use dismissal and re-engagement in some circumstances, although it already carries legal, employee relations and reputational risk. From January 2027, dismissal and re-engagement on less favourable terms will become automatically unfair in most circumstances.
How to prepare:
- Document decision making early
- Engage meaningfully with employees
- Plan ahead
- Consider alternative options
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The common thread between all these changes are your managers – they are the key to success. Much of the impact of these reforms comes from your managers and how effectively they handle workplace situations.
We encourage employers to use the few months to strengthen their workplace aligned to these changes to ensure you are best positioned for the reforms that lie ahead.
For more information or support please contact lucy@mcmillanandassociateshr.com
Whether its support preparing for the next wave of changes or around a specific area of change, we are on hand ready to help.
Get in touch:
🌐https://mcmillanandassociateshr.com/
📞 07983494048