A number of significant employment law changes are due to come into force during October 2026, with further reforms following in 2027. While many employers are aware of the headline changes, our experience on the ground suggests that the approach in practice is not always aligned with the new requirements.
We’re certainly not in the business of scaring employers unnecessarily and, of course, the steps an organisation takes might depend on its size, circumstances and the level of risk. However, many of the changes already introduced, as well as those due to come into force over the next 12 or so months, will increase compliance risk for employers of all sizes if not properly considered and implemented.
Recap
The following are some of the changes that have already taken effect (April 2026):
- The abolition of SSP waiting days and the Lower Earnings Limit for Statutory Sick Pay eligibility.
- Day one eligibility for Paternity Leave and Unpaid Parental Leave and the ability for employees to take Paternity Leave after Shared Parental Leave.
- The introduction of Bereaved Partners Paternity Leave under separate legislation.
- A requirement for employers to retain annual leave and holiday pay records for six years - records of holiday taken, carried over, pay calculation (including any commission or bonuses) and any payments in lieu.
- The extension of whistleblowing protections to workers who make disclosures relating to sexual harassment.
April also saw the establishment of the Fair Work Agency, which has enforcement powers across a range of employment rights, including National Minimum Wage, holiday and Statutory Sick Pay, working time compliance and employment records.
Coming up…
From 1 October 2026, the time limit for bringing most Employment Tribunal claims will double from three to six months, significantly extending the period during which claims can be pursued. This will give potential claimants more time to seek advice and commence proceedings, increasing the importance of robust employment practices and record keeping.
From 30 October 2026, further key changes will take effect:
Trade union reforms
- A new duty to inform workers in writing of their right to join a trade union. Whilst not a standalone claim, failure to comply may result in an additional award of between two and four weeks' pay being added to any successful tribunal claim. *UPDATE 25/9/26* the duty to inform workers of their right to join a trade union has now been put back to January 2027. The government have also published their response to public consultation on this, which sets out some of the practicalities.
- For employers with 21 or more workers, strengthened trade unions' rights of access will enable qualifying trade unions to request access to workplaces, both physically and via digital channels, in order to recruit and engage with workers (even where the union has no members within the organisation). Where sufficient workers subsequently join a union, employers may be required to enter into bargaining arrangements over matters such as pay, hours and holidays.
New penalties will apply for non-compliance with access arrangements determined by the Central Arbitration Committee (CAC), with financial penalties starting at up to £75,000 for an initial breach, increasing to £500,000 for more serious or repeated non-compliance.
These reforms have the potential to change the wider employee relations landscape within some organisations and may require employers to review how they engage with and communicate with the workforce.
Harassment measures
- Employers will be required to take "all reasonable steps" to prevent sexual harassment. (i.e. every available, practical preventative measure rather than bare-minimum policies). This means assessing risk and putting measures in place to prevent it. If it has already happened, you must take action to stop it happening again.
- The introduction of employer liability for third-party harassment means employers may be liable where workers experience harassment from customers, clients, contractors, suppliers or members of the public, unless appropriate preventative measures have been taken. Note, this applies to any form of harassment relating to a relevant protected characteristic (age, disability, gender reassignment, race, religion or belief, sex, sexual orientation).
Employment Tribunals may apply a compensation uplift of up to 25% where employers fail to meet their preventative duties in a successful sexual harassment claim. Alongside this, there is also the risk of potential investigation and enforcement action by the Equality and Human Rights Commission (EHRC).
And into 2027…
Looking ahead to January '27, the new year brings another biggie: a reduction in the qualifying service required to claim ordinary unfair dismissal from two years to six months.
When the reforms were first announced, this was billed as a move towards 'day one' unfair dismissal rights. A more pragmatic approach has, however, prevailed, with the Government opting for a six-month qualifying period instead. Although, this does create a much smaller window in which employers can assess suitability for a role, meaning probationary periods and probation management will take on even greater significance. Employers will no longer be able to rely on the relative comfort of a two-year qualifying period. Instead, effective recruitment, clear expectations, regular review meetings, robust performance management and capable line managers will become increasingly important in managing risk and making informed employment decisions.
Alongside this change, new restrictions on dismiss-and-re-engage (commonly referred to as "fire and rehire") practices are also due to take effect in January.
Among the other significant reforms expected during 2027 (timings tbc at time of writing), are the introduction of guaranteed hours, rights to reasonable notice of shifts and payments where shifts are cancelled, moved or curtailed at short notice. These changes will have the greatest impact on employers relying on casual, zero-hours or variable-hours working arrangements.
And that’s not all…
We've taken you through a quick run through of the reforms we believe are likely to affect the majority of employers based on the available information to date. This is in the context of the broader programme of employment law reform which is continuing to roll out, with some changes applying only to larger organisations, particular sectors or specific workforce models. For example, mandatory gender equality action plans and menopause support (expected 2027) affecting organisations with over 250 employees, reforms to tipping legislation, changes affecting public sector procurement and adult social care pay clearly only apply to certain organisations, as well as the even more niche measures, such as new protections for seafarers.
While not every change will affect every organisation, most, if not every, employer is likely to see their compliance obligations increase over the coming months.
A practical starting point
We understand that for many employers, the challenge is not recognising that change is coming, but knowing where to start.
In real terms, compliance with the evolving employment law landscape is about more than just updating contracts and policies (although they are a great starting point). Risk assessment, investment in people management skills and measures to protect the workforce are all likely to come under greater scrutiny in the coming months.
For organisations that haven't reviewed their employment practices recently, this provides a timely opportunity to assess current arrangements, identify any gaps and prioritise action before further changes take effect.
Our Employment Rights Act Compliance Health Check has been designed to give employers an initial steer. It explores the situation as it stands through key areas:
· Workforce structure
· Contractual and procedural compliance
· Management practices
· Trade union obligations
· Specific exposure
Using your responses, we provide a complimentary summary of the areas where your organisation may face increased compliance risk, together with suggested next steps.
Our ERA Health Check considers current compliance levels for the changes already in force and preparedness for reforms still to come, helping you understand where further action may be needed, as well as where you are already well positioned.
If you would like our support in reviewing where your organisation is at currently, as well as your readiness for upcoming changes, please get in touch for an ERA Health Check and we’ll send you a link, completely free of charge: admin@mustardhr.co.uk or via our website contact form quoting “ERA Health Check”.
