Employment Rights Act Watch: September 2026 edition
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?
One of the Starmer government’s last acts in office was to update the implementation timeline for the Employment Rights Act 2025. So far, the Burnham government has given no indication that it intends to depart from that timeline. On that basis, we are working toward the next significant milestone in October, with the following implementation dates:
New duties to review and consult on tips and gratuities policies are subject to consultation on a re-issued draft Code of Practice and are expected to be brought into effect by the end of the year.
The next major implementation milestone will be 1 January 2027, with changes to the unfair dismissal framework and to ‘fire and rehire’ anticipated to come into effect.
What should you be focusing on?
October readiness
The October implementation dates are now fast approaching and your main focus should be on ensuring that your organisation is ready for these changes. Note, in particular:
Tribunal time limits
The extension of Tribunal time limits from three to six months will take effect on 1 October (9 November in Scotland). There is nothing you need to do to prepare, but the change may affect the dynamics of early-stage employment disputes and it is important to ensure that team members dealing with contentious exits or settlement discussions are aware of it. Note that the extended time limit will apply in relation to causes of action arising on or after 1 October 2026 – claims presented (after 1 October) in respect of causes of action arising before that date will continue to be subject to the three-month time limit.
Changes to the harassment framework
With changes to the legal framework on harassment expected to come into force on 30 October 2026, you should now be completing programmes to review and enhance preventative measures relating to sexual harassment and to put in place measures to protect employees against broader harassment by third parties (including clients, customers and suppliers). Read more about the changes, what they mean for you and how you can prepare in our in-depth articles, “Raising the bar on sexual harassment prevention: The enhanced duty explained” and “When lines are crossed: Are you prepared for third-party harassment liability?“.
Changes to trade union law
The Act extensively reforms trade union laws. For the most part, these will impact organisations who already recognise a trade union or who operate in heavily unionised environments. If that applies to you, we recommend that you take specific advice on how the changes may affect you.
Two changes expected on 30 October potentially affect businesses outside traditionally unionised environments, and it is important that you are aware of them even if you do not generally deal with trade unions:
- New duty on all employers to inform workers of their right to join a trade union. After a consultation on the detail of this new duty closed in December, we are still awaiting the government’s confirmation as to what employers need to do to comply. You can read more about what we know, and the direction things are likely to take, here.
- New trade union access rights. You can read more about the access rights here. At a minimum, you should ensure that managers and HR professionals throughout your business are aware of these rights and that escalation routes for formal and informal approaches from a trade union are clear and effective. If you think your business is likely to receive an access request from a trade union, you may wish to take a more proactive approach and give thought to how appropriate access arrangements might be designed.
January readiness
You should not lose sight of the next implementation milestone on 1 January 2027 and the changes to the unfair dismissal framework. The changes are significant and will substantially increase risk around ordinary course dismissals. You should use this time to:
- Ensure that hiring and probation procedures are robust.
- Manage problem cases proactively, with the aim of concluding any exit conversations that need to be had before the new regime enters into force.
- 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.
Read more about the changes, what they mean for you and how you can prepare here. You can also read more about managing fixed-term contracts in the brave new world of six-month qualifying periods and uncapped unfair dismissal claims here. If you would like to discuss your approach, or talk through more bespoke risk mitigation strategies, please contact a member of the team.
The longer view
The Employment Rights Act reforms are extensive and implementation will continue into 2027. We are awaiting further detail on many of these changes, so there is a limit to what you can meaningfully do to prepare.
One area where we do recommend you take action is on holiday pay. As of 6 April 2026, employers are under obligations to keep records relating (among other things) to holiday pay compliance, and the Fair Work Agency (FWA) will be given powers to enforce holiday pay compliance from 2027. This will increase risk for employers who do not calculate holiday pay correctly. There is a window of opportunity now to review your holiday pay arrangements and ensure you are compliant. You can read more the proposals, what they mean for you, and what you can do prepare 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?
The government has launched a consultation on a re-issued draft Code of Practice on Fair and Transparent Distribution of Tips. The draft is in substantially the same form as the version previously issued. The consultation will close on 29 September 2026 and we expect new rules on tipping (including a new duty to consult on tipping policies) to be brought into effect by the end of the year.
The government consultation on reforms affecting zero- and low-hours workers closed on 25 August. A new government impact assessment suggests the cost to business of these measures is likely to be between £350 million and £2.9 billion per year. You can read more about the controversial proposals here.
The government consultation on statutory holiday pay enforcement will close on 22 September 2026 – you can read more about this here. We expect the government response over the coming months.
Navigating the Employment Rights Act 2025
An overview of the key changes and some general guidance on steps you can sensibly take to prepare.
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