Written by Oliver Milton, Lawyer in Employment Law.
From October 2026 and into January 2027, a number of important employment law changes are expected to take effect. These updates will affect how employers manage tribunal risk, harassment prevention, contractual changes, trade union information duties, and unfair dismissal claims.
For employers, the overall direction is clear: workplace processes will need to become more proactive, better documented, and more consistent. Employers should use the period before the changes come into force to review policies, train managers, and ensure key employment decisions are properly recorded when they are made.
Key Takeaways
- From 1 October 2026, employees will have more time to bring an employment tribunal claim, with the relevant time limit increasing from three months less one day to six months less one day.
- From 30 October 2026, a wide range of employment law changes will take effect, covering sexual harassment, third-party harassment, fire and rehire, trade union rights, and other workplace protections.
- From January 2027, further reforms will change unfair dismissal protections, including the qualifying period and the rules around compensation.
1 October 2026 – Employment Tribunal Time Limits
This change will give employees more time to bring an employment tribunal claim.
- What is changing? From 1 October 2026, the ordinary time limit for bringing most employment tribunal claims will increase from three months less one day to six months less one day. The new deadline will apply where the act complained of, or the last act in a continuing course of conduct, occurs on or after 1 October 2026.
- Why does this matter? This is a significant practical change where employees and workers will have longer to take advice, complete Acas early conciliation and decide whether to issue proceedings. For employers, potential tribunal exposure will remain live for longer after dismissals, grievances, pay disputes, discrimination allegations, whistleblowing complaints, and other workplace decisions.
- Practical impact for employers: The longer limitation period means that disputes may resurface months after the relevant decision or incident, when witnesses’ recollections may have faded, and key documents may be harder to locate. Employers should make sure that investigation notes, disciplinary and grievance records, appeal outcomes, dismissal letters, and supporting evidence are complete, accurate and retained for long enough to respond effectively if a claim is later brought.
- What should employers do now? Employers should review document retention practices, remind managers to record the rationale for key employment decisions at the time they are made, and consider whether template letters, policies, and internal guidance should be updated to reflect the new six-month tribunal deadline.
30 October 2026 – Sexual Harassment Prevention
Employers will need to take further steps to protect employees in the workplace.
- What is changing? From 30 October 2026, the existing duty on employers to take reasonable steps to prevent sexual harassment is expected to be strengthened so that employers must take all reasonable steps to prevent sexual harassment of their employees in the course of employment. The exact practical scope of this enhanced duty will depend on the final legislation and guidance.
- Why does this matter? The change reinforces the move towards proactive prevention rather than reactive complaint handling. Employers are likely to face greater scrutiny of whether they have identified harassment risks in their organisation, taken appropriate preventative action, and kept those measures under review.
- Practical impact for employers: While the detail is still developing, employers should expect greater scrutiny of the steps they have taken in practice, including risk assessment, training, reporting procedures, investigations, and workplace culture.
- What should employers do now? Employers should review their current approach to preventing sexual harassment before the new duty takes effect. This should include updating policies, refreshing training for staff and managers, assessing higher-risk areas of the business, checking how complaints are reported and handled, and keeping a clear written record of the preventative steps taken.
30 October 2026 – Third-Party Harassment
The new rules will broaden employers’ responsibilities around workplace harassment.
- What is changing? From 30 October 2026, new employer liability is expected to be introduced in respect of harassment of employees by third parties in the course of employment. Employers will need to look beyond harassment between colleagues and consider risks arising from people outside the organisation, such as customers, clients, service users, suppliers, contractors, visitors, or members of the public. The precise scope of the new liability will depend on the final legislation and guidance.
- Why does this matter? The change is likely to be important for employers whose staff interact with people outside the organisation. It may be particularly relevant in customer-facing, public-facing, or client-facing environments, where employees could be exposed to inappropriate conduct by third parties.
- Practical impact for employers: The detail is still developing, so employers should be cautious about treating any current checklist as definitive. What can be said is that employers should expect greater scrutiny of whether they have considered third-party harassment risks and taken appropriate steps in response. This may include looking at policies, reporting routes, manager training, and escalation procedures, but the precise steps required will depend on the final legal framework and the circumstances of the particular workplace.
- What should employers do now? Employers do not need to wait for complete certainty before preparing. A sensible starting point is to identify where staff may be most exposed to conduct from third parties, check whether existing harassment policies and reporting procedures cover those situations, and make sure managers know how to respond if concerns are raised.
30 October 2026 – Fire and Rehire Restrictions
The changes will place tighter restrictions on certain employment practices.
- What is changing? The Government is expected to introduce tighter restrictions on the use of dismissal and re-engagement practices, commonly known as “fire and rehire”. The intention is to make it more difficult for employers to dismiss employees and offer re-employment on less favourable terms where agreement to contractual changes cannot be reached.
- Why does this matter? Although the precise scope of the new restrictions will depend on the final legislation and any accompanying guidance, employers are likely to face greater scrutiny before using dismissal and re-engagement as a means of implementing contractual change.
- What should employers do now? Employers contemplating significant contractual changes should continue to focus on meaningful consultation, employee engagement, and exploring alternatives before considering dismissal and re-engagement. Until the detail is settled, a cautious and well-documented approach is advisable.
30 October 2026 – Trade Union Reforms
The reforms will introduce several changes affecting trade unions and employers.
- What is changing? From 30 October 2026, employers will be required to provide workers with information about their right to join a trade union. The obligation is expected to apply both at the start of employment and at other prescribed intervals during employment. Unions will also be able to request “access arrangements” whereby they will be able to visit workplaces and speak with employees for several purposes, including recruiting and providing information.
- Why does this matter? This creates a new statutory information duty for employers and reflects the Government’s intention to improve awareness of trade union rights. It could also see union officials entering workplaces more regularly and an increase in union involvement more generally.
- What should employers do now? Employers should review onboarding processes, offer packs, contracts, staff handbooks, and other employee communications to ensure information about trade union rights can be provided at the required times. They should also envisage what a practical access arrangement may look like and ensure managers are trained on how to deal with requests given the tight deadlines.
January 2027 – Unfair Dismissal Protection
The changes will make it easier for more employees to qualify for protection.
- What is changing? From January 2027, the current requirement for most employees to have two years’ continuous service before they can bring an ordinary unfair dismissal claim is expected to be reduced to six months. This represents one of the most significant changes to unfair dismissal law in recent years. While some aspects of the new regime, including any statutory probationary framework, may continue to develop through legislation and guidance, the key change is that employees will gain unfair dismissal protection much earlier in their employment.
- Why does this matter? Many employers have historically viewed the first two years of employment as a period during which dismissals could be managed with relatively lower unfair dismissal risk. The reduction of the qualifying period to six months will significantly shorten that window and could result in an increased number of unfair dismissal claims being brought where processes are not carried out correctly.
- Practical impact for employers: Employers may need to place greater emphasis on performance management, documentation, and procedural fairness at an earlier stage of employment. Decisions relating to performance concerns, conduct issues, capability, and suitability for the role are likely to require more careful consideration once employees acquire unfair dismissal protection after six months’ service. Recruitment, induction, and probationary processes may therefore become even more important.
- What should employers do now? Employers should review probationary procedures, performance management processes, and manager training ahead of the change. Consider whether probation periods remain appropriate and potentially shorten them if they are currently 6 months or more, whether performance concerns are being identified and addressed early enough, and whether managers are adequately documenting concerns and discussions with employees.
January 2027 – Removal of the Compensatory Award Cap
This change will significantly alter how compensation can be awarded in certain claims.
- What is changing? From January 2027, the statutory cap on the compensatory award for ordinary unfair dismissal claims is expected to be removed. This means that, unlike under the current regime, compensation for financial losses arising from an unfair dismissal will no longer be subject to a maximum statutory limit. The basic award will remain separate, but tribunals will have greater scope to compensate employees for losses that are attributable to the dismissal.
- Why does this matter? The existing cap provides employers with a degree of certainty when assessing the potential value of an unfair dismissal claim. Removing the cap is likely to increase exposure, particularly in claims brought by higher earners or employees who experience substantial or prolonged financial loss following dismissal. It may also increase the value of claims generally and influence settlement discussions at an earlier stage.
- Practical impact for employers: The financial consequences of an unfair dismissal finding could be significantly greater than they are now. As a result, employers are likely to face increased pressure to ensure that dismissal decisions are both substantively fair and procedurally robust. The change is likely to be particularly significant when combined with the reduction of the unfair dismissal qualifying period from two years to six months.
- What should employers do now? Employers should review dismissal procedures, manager training, and internal decision-making processes to minimise the risk of unfair dismissal claims. Particular attention should be given to probation management, performance processes, disciplinary procedures, consultation, and appeals.
The upcoming employment law changes are expected to increase employers’ responsibilities across several key areas, including tribunal claims, harassment prevention, contractual changes, trade union information duties, and unfair dismissal rights. Although some detail is still awaited, employers should use the time before October 2026 and January 2027 to review their policies, strengthen internal processes and ensure managers are confident in handling workplace issues fairly and consistently.
How Can Howell Jones Solicitors Help?
If you are an employer and would like advice on how these changes could affect your business, our Employment Law team at Howell Jones, Surrey solicitors, can help you prepare.
To speak to one of our employment solicitors in Surrey, please contact us on 0800 011 9813 or email hello@howell-jones.com.
