Employment Rights Act Watch: October 2026 edition

Compass

Welcome to this month’s edition of Employment Rights Act Watch, bringing you the very latest 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 dates to work toward are now:

  • Expected before the end of the year (date TBC) – new duties to review and consult on tips and gratuities policies (if relevant to you).
  • January 2027 – changes to the unfair dismissal framework and to ‘fire and rehire’ (expected 1 January), and new duty to inform workers of their right to join a trade union (January date TBC).

Further implementation dates are expected in April and (likely) October 2027, though the detailed 2027 implementation timeline remains to be confirmed.

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.

Year-end readiness

If changes to the tips and gratuities framework are relevant to you, keep an eye out for the final Code of Practice on tipping. Once that is published, you may need to respond quickly.

January readiness

Look ahead to January 2027, when we expect changes to the unfair dismissal framework and ‘fire & rehire’ as well as the new duty to inform workers of their right to join a trade union.

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, is now deferred until January. 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 to get ready in our primer here.

The longer view

We are beginning to get more clarity on further changes expected to come into force in April 2027 and beyond, including changes to flexible working and a new statutory bereavement leave. We will bring you more information and guidance on how to prepare in due course 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 we await a government response.

The government has issued also responses to two consultations:

  1. 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 autumn 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.

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

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