Employment Rights Act Watch: October 2026 edition

Compass

Welcome to this month’s edition of Employment Rights Act Watch, bringing you the very latest, hot off the press, on the implementation process, together with practical tips on what you should be focusing on now to prepare for the changes ahead.

For an overview of the key changes under the Act and to access detailed guidance on topics most relevant to you, please browse our Employment Rights Act Hub.

Where are we on implementation?

We are in the thick of the second significant implementation wave – October 2026.

Effective 1 October 2026, Employment Tribunal time limits have now been extended from three to six months (with the exception of breach of contract claims in Scotland – to follow in November).

On 30 October 2026, we will see:

  • Changes to the harassment framework, including the enhanced duty to prevent sexual harassment and the reintroduction of third-party harassment liability for employers; and
  • Changes to trade union laws, notably including the new workplace access right for trade unions.

Other changes previously expected in October 2026 have been delayed. That means that the next implementation date to work towards is now 1 January 2027, when we expect:

  • New duties to review and consult on tips and gratuities policies.
  • Changes to the unfair dismissal framework.
  • The new duty to inform workers of their right to join a trade union.

New restrictions on ‘fire and rehire’ have been deferred to March 2027. Further implementation dates have now been confirmed for 2027 – you can access the updated implementation timeline here, and we will bring you further details in due course.

What should you be focusing on?

October readiness

You should be finalising preparation for 30 October 2026, to the extent not already complete.

Harassment

Initial programmes to review and reinforce anti-harassment frameworks should be nearing completion. Once in place, these should be kept under continuous review. You can read more about the changes and how to prepare in our in-depth articles, available here.

Failure to prepare adequately may expose your business to claims for third-party harassment of staff in the course of employment and compensation uplifts for sexual harassment claims. Some businesses will be more exposed than others. If your staff have extensive contact with third parties as part of their work, for example, putting risk mitigation measures in place should be an urgent priority. However, harassment and sexual harassment (including by third parties) can occur in any business. Putting protective measures in place should therefore be on all employers’ action plan.

Trade union access rights

You also need to be aware of new trade union access rights. A failure to handle an access request from a trade union swiftly and prudently may result in access terms being imposed which are difficult to manage. Where access terms are agreed or imposed through the statutory procedure, rather than informally, there may also be severe consequences to breaching access terms.

It is therefore important to ensure that your business is prepared to respond to an access request quickly and constructively. What preparation is proportionate for your business will depend on how likely you think you are to receive an access request. If you think a request is unlikely, at a minimum, you should ensure that senior staff throughout the business are aware of the new access right and know how to escalate any approach from a trade union (including any informal contact) immediately. Time is often a significant factor, so clear and efficient escalation routes are essential. If you think a request is likely, you may wish to take a more proactive approach.

Read more about the new access rights and how to prepare here.

January readiness

Look ahead to 1 January 2027, when we expect changes to the unfair dismissal framework, the new duty to inform workers of their right to join a trade union and changes to the framework governing tips and gratuities.

Unfair dismissal

The changes to the unfair dismissal framework are highly significant and will materially increase employer risk on ordinary-course terminations. By preparing now, you can mitigate risk and termination costs.

You can read about the changes here. You may also find this piece on the implications for managing fixed-term contracts helpful.

In summary, by mid-December, you should:

  • Manage problem cases proactively, with the aim of concluding any terminations required under the current capped liability regime and well before the end of the year.
  • Ensure that hiring and probation procedures are robust.
  • Review wider procedures around handling terminations, including your procedures for managing the expiry of fixed-term contracts.
  • Consider whether more bespoke risk mitigation strategies for key hires are necessary.

If you would like to discuss your approach, or talk through more bespoke risk mitigation strategies, please contact a member of the team.

Duty to inform workers of their right to join a trade union

The new duty to inform workers of their right to join a trade union, originally due to come into force on 30 October 2026, has been deferred until 1 January 2027. We now finally have the detail on what employers need to do to comply. Read all you need to know about the new duty and how you can prepare in our primer here.

Tips and gratuities

An updated Code of Practice on the distribution of tips and gratuities and on new duties to review and consult on tips and gratuities policies is awaited. We will publish more information as soon as the final detail is confirmed.

The longer view

We are now getting more clarity on further changes expected to come into force in March and April 2027 and beyond, including changes to fire & rehire, collective redundancy consultation, flexible working and a new statutory bereavement leave. We will bring you more information and guidance on how to prepare in due course and as we move into the new year.

For now, a final reminder to take this opportunity to review your holiday pay arrangements. Read more on the changes to the enforcement regime, why they are important, and what you should do here. If you require support carrying out an audit or if you would like to discuss the best approach to remedying any issues identified without generating disputes, please reach out to a member of the team.

What is the very latest on the Employment Rights Act?

Consultations on statutory holiday pay enforcement and the draft revised Code of Practice on distribution of tips have now closed, and The government has just updated the implementation timeline for reforms, giving us a clearer picture of what 2027 will look like for employers. You can access the updated timeline here.

Consultations on statutory holiday pay enforcement and the draft revised Code of Practice on distribution of tips have now closed, and we await a government response.

The government has also issued responses to four consultations:

  1. The consultation on certain points of detail relating to new fire & rehire protections, now expected to come into effect in March 2027. The government has also issued a consultation on a draft revised Code of Practice on Dismissal and re-engagement, not expected to take effect until summer 2027.
  2. The consultation on a new form of statutory bereavement leave, with detail on eligibility, terms and notice requirements. The changes are expected to come into effect in April 2027.
  3. The consultation on flexible working reform. At the same time, ACAS has issued an updated Code of Practice on flexible working for consultation. The changes are expected to come into effect in October 2027.
  4. The consultation on enhanced dismissal protections for pregnant women and new mothers, with changes expected in October 2027.

We will bring you more information and guidance on how to prepare in due course.

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