The Employment Rights Act 2025 is being introduced in stages, and the final months of 2026 bring some of the most practical changes for employers so far. Here's what's changing, when, and the simple steps you can take now to stay compliant.
At a glance
- 1 October 2026: Employment tribunal time limits double from 3 to 6 months.
- 30 October 2026: A stronger duty to prevent sexual harassment, new liability for harassment by third parties, and new trade union rights.
- 9 November 2026: Longer time limits for breach of contract claims in Scotland.
- By the end of 2026: New rules on how tipping policies are created and reviewed.
1. Employees now have longer to bring a claim
Since 1 October 2026, most employment tribunal claims can be brought up to 6 months after the issue happened, rather than 3 months. For example, an employee dismissed in October 2026 could now bring a claim as late as spring 2027.
In practice, this means a dispute can surface long after you thought it was resolved. Clear notes of meetings, decisions and the reasons behind them are more valuable than ever, and grievances are best dealt with promptly and fairly before they escalate.
2. A stronger duty to prevent sexual harassment
From 30 October 2026, employers must take all reasonable steps to prevent sexual harassment at work. This is a higher bar than the previous "reasonable steps". It isn't enough to have a policy in a drawer: you need to show you've actively thought about the risks in your workplace and acted on them.
On the same date, employers also become liable for harassment of their staff by third parties, such as customers, clients, contractors or suppliers, unless they have taken all reasonable steps to prevent it. This is particularly important for customer-facing teams in retail, hospitality, healthcare and events.
Practical steps to consider:
- Review and update your anti-harassment policy so it clearly covers third parties.
- Carry out a simple risk assessment: where, when and by whom could harassment happen?
- Train managers and staff, and make sure everyone knows how to raise a concern.
- Keep a record of the steps you've taken. This is your evidence if a claim is ever made.
3. New trade union rights
Also from 30 October 2026, trade unions have updated rights to access workplaces, some union representatives gain new rights to facilities and time off, and workers taking part in protected industrial action are protected from being treated less favourably by their employer.
If you don't currently have a union presence, the impact may be limited for now. It's still worth making sure your managers understand the new rules, so that any approach from a union is handled correctly.
4. Tipping policies (by the end of 2026)
If your business receives tips, new rules due by the end of 2026 mean you'll need to consult your workers before creating or reviewing your tipping policy, share an anonymised summary of their feedback, and review the policy at least every 3 years. Hospitality businesses in particular should start planning this now.
5. Scotland: breach of contract claims
From 9 November 2026, the time limit for breach of contract claims in Scotland also increases to 6 months, bringing it in line with the wider tribunal changes.
Looking ahead: January 2027
The next wave of changes is close behind, so it's worth preparing now:
- Unfair dismissal: from 1 January 2027, employees will be able to bring an unfair dismissal claim after 6 months' service, rather than 2 years, and the cap on compensation will be removed. Strong probation processes will become essential.
- Trade unions: employers will have a duty to tell workers about their right to join a trade union.
- "Fire and rehire": new restrictions are expected sometime in January 2027 (the date is not yet confirmed).
Key takeaways
- Employees now have 6 months to bring most tribunal claims, so keep clear records.
- Update your harassment policy, assess the risks (including from customers and clients) and train your team.
- If you handle tips, start planning how you'll consult staff on your tipping policy.
- Review probation periods and processes before the unfair dismissal changes in January 2027.
What to do next
These changes don't need to be overwhelming. A quick review of your policies, contracts and processes now can save a great deal of time, cost and stress later. If you'd like support updating your handbook, training your managers or preparing for 2027, get in touch for a free, confidential chat.