In December 2025, the Employment Rights Act 2025 received Royal Assent and became law, promising to deliver some of the largest amendments to employment law in a generation.
Some of these changes have already started to take effect. For example, as of April 2026, there is a duty on employers to keep records in relation to annual leave for six years and paternity leave became a ‘Day One’ right for employees. This means that employers must act now to ensure that their organisation is ready to implement these changes, by taking the necessary steps.
In this article, we look to the year ahead and report on what changes are proposed to be introduced and how businesses can prepare for these.
October 2026
The next tranche of changes is scheduled to be introduced in October 2026 and employers should be prepared for what these entail. We have covered a few of the changes below:
Duty to take all reasonable steps to prevent sexual harassment
This means employers must now take all reasonable steps to prevent sexual harassment of their employees. A new duty will also be introduced which prohibits employers from permitting harassment by third parties. Employers will permit such harassment only if it occurs during the course of employment and the employer cannot show they took all reasonable steps to prevent it.
Considerations: Employers must be alert to this new duty, as it will no longer be enough to merely enrol staff in a training course, for example, to satisfy the test. What is reasonable will likely depend on the size and resources of the organisation but in any event, steps must be consistently taken and kept up to date. This means regular reviews of policies and procedures and ensuring employees are aware of what is expected of them.
Tips
There will be a new requirement for employers to consult with the representatives of recognised trade unions, worker representatives or workers that are likely to be affected by the policy before a new policy is introduced or a current one amended. After this is complete, an anonymised summary must be given to all workers at the business. Employers must also ensure that the policy is reviewed regularly and at least once every three years.
Considerations: Any relevant industry that has a tipping/gratuities policy must ensure that they review this document in line with the statutory requirements and make the relevant consultations when needed.
Employment Tribunals
There will be an increase to the time limit in which certain claims can be brought from three months to six months.
Considerations: Whilst this may not initially appear to be a significant increase, allowing claimants longer to submit a claim means further uncertainty for both parties as the employer awaits to hear whether a claim has been brought and the employee has longer to consider their options and whether they wish to pursue litigation. Employers should be alive to this update and how this can affect their business.
January 2027
Unfair dismissal
Perhaps the most highly anticipated change is that to the regime that governs unfair dismissal, due to come into force on 1 January 2027. The qualifying period of service that an employee must have to bring an unfair dismissal claim is being reduced from two years to six months. In addition, the compensatory cap on unfair dismissal awards granted in a tribunal, is to be removed.
Considerations: Employers must be aware of these new changes, as employees who have started employment before 1 July 2026 will automatically qualify for this protection. This adds a new dimension to importance of a probationary period – employers must now ensure that this is used to its maximum potential and proper process is followed at all stages. Indeed, where potential issues are identified, for example with performance, this must be dealt with properly and in line with company policy.
The removal of the compensation cap is perhaps most significant when considering cases of higher earners bringing unfair dismissal claims, when the cap on earnings will no longer apply.
Next steps
As a starting point, employers should review their policies and procedures, updating these as necessary. Reconsideration should be given, for example, to the way that probationary periods are structured and whether three or six month periods are the most appropriate. Undoubtedly, the best prepared employers will be the ones most equipped to deal with the ongoing changes.
If you wish to discuss this further, please do not hesitate to contact Molly Mackay by email: mxm@cooperburnett.com or tel: 01892 515022.
This blog is not intended as legal advice that can be relied upon
Originally published in Crowborough News: https://crowborough.news/
