What Employers Need to Know Before January 2027
If you've found it difficult to keep up with the Employment Rights Act 2025 reforms, you're certainly not alone. In conversations with clients each week, one of the most common themes I hear is the challenge of keeping track of what is actually changing and when. Since the legislation was passed, employers have had to navigate multiple consultations, revised implementation dates and an increasing volume of online commentary, much of which can create more confusion than clarity. With a number of important changes taking effect from October 2026 and further reforms arriving in January/March 2027, now is a good opportunity to focus on what is actually changing, when it takes effect, and what employers should be doing to prepare. As I explained in August (https://wirehouse-es.com/disciplinary/the-current landscape/) employers are already dealing with increasing workplace disputes, lengthy Tribunal backlogs and growing expectations around workplace culture and compliance; understanding these changes now will help minimise disruption later.
Please note that the information contained within this article is accurate as at 5 October 2026. Employment law continues to evolve and further regulations or guidance may alter some of the provisions discussed
Below is a simple summary of the key changes and what they could mean for your organisation;
1 OCTOBER 2026
Employment Tribunal Claims Double From Three Months to Six Months
From 1 October 2026, the time limit for bringing most Employment Tribunal claims increases from three months to six months.
This means former employees will have considerably longer to commence legal proceedings and employers may need to retain records and documentation for longer periods to defend potential claims.
For employers, this increases the period during which workplace disputes can remain active and reinforces the importance of maintaining thorough records of investigations, disciplinary processes, grievances and dismissals.
Important note for Scottish-based employers: The extension for breach of contract claims in Scottish Employment Tribunals takes effect on 9 November 2026.
For more information on Employment Tribunal time limits, visit the Acas guidance here: https://www.acas.org.uk/employment-tribunal-time-limits
1 OCTOBER 2026
Stronger Duties to Prevent Sexual Harassment
The Employment Rights Act 2025 strengthens the preventative duty introduced under the Worker Protection (Amendment of Equality Act 2010) Act 2023 by increasing the legal standard from "reasonable steps" to "all reasonable steps"
Employers will be required to take "all reasonable steps" to prevent sexual harassment in the workplace. This replaces the previous requirement to take simply "reasonable steps".
The existing duty requires employers to take "reasonable steps" to prevent sexual harassment. Under the new provisions, employers will be required to take "all reasonable steps" to prevent sexual harassment occurring in the workplace.
Tribunals have traditionally scrutinised whether employers have taken reasonably practicable measures to prevent harassment. Moving to an "all reasonable steps" standard is expected to raise the threshold considerably and require organisations to demonstrate a more proactive and comprehensive approach.
While the wording change appears small, the practical impact could be significant. Employers should ensure harassment policies are up to date, managers are appropriately trained and reporting procedures are effective and regularly reviewed.
1 OCTOBER 2026
New Liability for Third-Party Harassment
Employers may also become liable where employees are harassed by third parties, including customers, clients, contractors or visitors, unless they can demonstrate that all reasonable preventative steps were taken.
Third parties may include, Customers, Clients, Service users, Contractors & Visitors.
This change is particularly relevant for customer-facing sectors such as hospitality, retail, healthcare, transport and professional services, where employees regularly interact with individuals who are not employed by the organisation.
30 OCTOBER 2026
Trade Unions Gain New Workplace Access Rights
Under the new framework, qualifying independent trade unions will gain statutory rights to access workplaces both physically and digitally for specific purposes, including meeting workers, recruiting members, supporting employees, facilitating collective bargaining and representing workers. Trade unions cannot use the access arrangements to organise industrial action.
Qualifying independent trade unions will gain legal rights to request access to workplaces, both physically and digitally, for purposes such as meeting workers, recruiting members, representing employees and facilitating collective bargaining.
Importantly, this right is not limited to workplaces where unions already have members or recognition arrangements in place. A qualifying independent trade union can begin the statutory process by serving a formal access request.
The new legislation is expected to apply to employers with 21 or more workers across the organisation, including associated employers and agency workers. Employers receiving a formal access request will generally have just 15 working days to respond. Where agreement cannot be reached, disputes may ultimately be determined by the Central Arbitration Committee (CAC).
For more information on Trade Unions Gain New Workplace Access Rights, please visit https://www.business.gov.uk/campaign/employment-changes/employers/trade-union-reform/
1 JANUARY 2027
Trade Union Information Statements
Employers will also be required to provide workers with written information regarding their right to join a trade union. This requirement was originally expected earlier but has now been delayed until January 2027.
1 JANUARY 2027
Unfair Dismissal Protection Expands Significantly
One of the most significant changes for employers takes effect on 1 January 2027, when the qualifying period for ordinary unfair dismissal claims reduces from two years' continuous service to six months' continuous service. The reduction of the qualifying period for ordinary unfair dismissal claims from two years to six months will apply where the effective date of termination (EDT) falls on or after 1 January 2027, significantly expanding the number of employees eligible to bring unfair dismissal claims
This means employees will gain unfair dismissal protection much earlier than is currently the case. Employees who already have at least six months' continuous service on 1 January 2027 will acquire ordinary unfair dismissal protection immediately, regardless of when they originally started employment.
Employers should not underestimate the practical impact of this change. Matters that may previously have carried relatively low unfair dismissal risk during an employee's first two years of service may now attract much greater scrutiny from an Employment Tribunal. As a result, employers should pay particular attention to probationary reviews, performance management, capability concerns, conduct investigations and dismissal procedures.
An important point to remember is that statutory notice can count towards an employee's length of service when determining eligibility for unfair dismissal protection. This means that some employees who appear to have less than six months' service at the point dismissal is communicated may nevertheless qualify once statutory notice is taken into account, so it is important, say for Wirehouse clients, to always log and take advice before dismissing, even when it appears low risk.
In addition, the Employment Rights Act 2025 removes the current compensation cap for ordinary unfair dismissal claims. As a result, compensation will no longer be subject to the existing statutory limit and tribunals will be able to assess compensation based on what is just and equitable in the circumstances, potentially leading to significantly larger awards in some cases, particularly for higher earners.
MARCH 2027
New Restrictions on "Fire and Rehire"
From March 2027, employers will face significant new restrictions when seeking to change employees' contractual terms through dismissal and re-engagement, commonly known as "fire and rehire".
Whilst often described as a ban on fire and rehire, the legislation does not prohibit the practice entirely. Instead, it makes dismissals automatically unfair in most circumstances where an employee is dismissed for refusing to agree to certain contractual changes and is then re engaged, or replaced, on revised terms.
It is also worth noting that the Government has now confirmed that the existing statutory Code of Practice on Dismissal and Re-engagement will be revoked in March 2027 when the new legislation takes effect. A consultation on a replacement Code of Practice is currently underway and is expected to conclude in December 2026. The proposed replacement code is not anticipated to come into force until summer 2027, meaning there may be a period during which employers are operating under the new legislative framework without a specific statutory code in place. Employers should therefore continue to focus on meaningful consultation, exploring alternatives and maintaining clear evidence of decision-making where contractual changes are proposed.
The new protections are primarily aimed at changes relating to:
• Pay
• Pensions
• Working hours
• Holiday entitlement
A limited exception exists where an employer can demonstrate serious financial difficulties affecting its ability to continue operating and that the contractual change could not reasonably have been avoided. The threshold for relying on this exception is expected to be high.
Employers considering contractual changes should therefore be cautious about relying on dismissal and re-engagement as a means of securing agreement to revised terms and should seek advice before commencing any such process.
Further information can be found in the Government's factsheet: https://assets.publishing.service.gov.uk/media/69a6c0223b5b78231d1a9ae5/factsheet-fire and-rehire-february-2026.pdf
Key Employer Actions
The new wave of changes arriving between October 2026 and January 2027 represent one of the most significant periods of employment law reform in recent years, and I understand this is not easy for employers.
My take is employers should now be reviewing policies, training managers, strengthening documentation practices and auditing existing employee relations procedures to ensure they remain compliant when the new provisions take effect.
For many organisations, particular attention should be given to dismissal processes, workplace harassment prevention measures and employee record keeping, as these areas are likely to attract increased scrutiny under the changes.
Navigating evolving employment legislation can be challenging, particularly where legal obligations are expanding and expectations are becoming increasingly proactive. At Wirehouse Employer Services, our employment law specialists work closely with employers to ensure their policies, procedures, documentation, and workplace practices remain legally compliant and commercially effective.
If you would like advice on how these changes may affect your organisation, please visit our website: https://wirehouse-es.com/, call us on 03333 215 005 or directly email us via: info@wirehouse-es.com.
