Is Your Business Ready for the Biggest Shake-Up in Employment Law in a Generation?
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Employment
September 11, 2026

Is Your Business Ready for the Biggest Shake-Up in Employment Law in a Generation?

The Employment Rights Act 2025 (ERA 2025) is being rolled out in phases, and two of the biggest take effect soon, in October 2026 and January 2027. Together they change how you handle everything from harassment complaints to dismissals, and from trade union access to fire-and-rehire. 

The first two phases (February and April 2026) have already been and gone, reshaping statutory sick pay, paternity leave, whistleblowing protections and annual leave record-keeping. But the changes coming next are arguably bigger and this time, there's very little room for a “wait and see” approach. 

What's landing in October 2026? 

  • Longer time limits for tribunal claims. Employees will have significantly more time to bring a claim, meaning historic issues can resurface long after you thought they were closed. 
  • A stronger duty to prevent sexual harassment. The current “reasonable steps” duty is being tightened and the practical steps you're expected to have taken will come under closer scrutiny. 
  • New liability for third-party harassment. For the first time, you could be held responsible for harassment of your staff by customers, clients or suppliers not just colleagues. 
  • A duty to tell staff about their right to join a trade union. Plus, wider trade union access and protections. 

What's landing in January 2027? 

  • A much shorter qualifying period for unfair dismissal claims. Employees will be able to bring claims far earlier in their employment than today. 
  • No cap on the unfair dismissal compensatory award. This will change the risk calculation on every dismissal decision. 
  • Tight new restrictions on “fire and rehire” and “fire and replace.” Using dismissal to force through contract changes on pay, hours, pensions or leave will become automatically unfair in most cases. 

And that's before you get to what's expected later in 2027: bereavement leave, enhanced pregnancy and family-leave protections, a ban on NDAs in harassment cases, zero-hours contract reform, and more. 

Act now 

Every one of these changes has a practical knock-on effect - contracts that need new wording, policies that need rewriting, and processes (consultation, documentation, dismissal decisions) that need to change before the law does, not after.  

Get the full picture 

We've pulled together a complete, practical breakdown of exactly what's changing, when, and what you need to do about it, including step-by-step employer actions, worked examples, and the policies you'll need to update. It's the fastest way to get from “I've heard the ERA 2025 is a big deal” to “I know exactly what my business needs to do next.” 

Get your copy here: The Employment Rights Act 2025

 

 

Blog
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Employment
Updated: September 11, 2026