The UK Employment Rights Act 2025 – October 2026 Changes Businesses Need to Know

The Employment Rights Act 2025 enacted in December 2025 represents one of the most significant UK workplace reform programmes in decades. Implementation of the changes are beingrolled out in stages across 2026 and 2027 with the next set of changes due to take effect  in October 2026. 

Consequently, the Government published an implementation timetable on 7 August 2026 outlining clear start dates for specific rules. Here are changes taking effect on 1 October 2026: 

Extended Employment Tribunal Time Limits

Under the current framework, an employee or worker who wishes to bring a claim before an Employment Tribunal must file that claim within three months of the event giving rise to it, minus one day. The relevant event is the date the act complained of occurred for unfair dismissal, this is the effective date of termination; for discrimination or harassment, it is the date of the act or the last act in a continuing series of acts. The “minus one day” is a procedural rule that avoids disputes about whether the anniversary date itself is included so a dismissal on 1 October gives the employee until 30 December to file, not 1 January.

From 1 October 2026, that time limit increases to six months less one day for the majority of Employment Tribunal claims. The extended limit applies only where the relevant act or failure complained of occurs on or after 1 October 2026. Any act or event that occurred before that date remains subject to the existing three-month time limit. This is not a retrospective change it does not reopen claims that were previously out of time.

The categories of claim covered by the extension include, but are not limited to: unfair dismissal, constructive dismissal, discrimination, harassment, victimisation, whistleblowing detriment, unlawful deductions from wages, TUPE-related claims, and Working Time Regulations breaches. Breach of contract claims are excluded from the extension in England and Wales and continue to carry the existing three-month time limit.

Before a claimant can file a claim in the Employment Tribunal, they are required to first notify the Advisory, Conciliation and Arbitration Service (Acas) and participate in the Early Conciliation process. Early Conciliation is a pre-claim dispute resolution step administered by Acas  an independent, government-funded body that gives both parties the opportunity to reach a settlement before formal proceedings begin. The tribunal time limit is paused while Early Conciliation is ongoing. Since 1 December 2025, the Early Conciliation period can run for up to twelve weeks. The practical effect is that an employer may not receive formal notice of a tribunal claim until ten to twelve months after the event that gave rise to it six months for the claimant to decide whether to file, plus up to twelve additional weeks during Early Conciliation.

For breach of employment contract claims in Scotland, the six-month time limit takes effect on 9 November 2026 rather than 1 October 2026. The reason for the different date is jurisdictional: the Employment Tribunal’s power to hear contract claims in Scotland derives from a separate 1994 Scottish procedural order, which falls within the competence of Scottish Ministers rather than the UK Government. Amending that order requires a separate legislative step, which has been timetabled for 9 November 2026.

Fair Pay Agreement for Adult Social Care

A new negotiating body representing approximately 1.5 million adult social care workers in England is expected to be formally formed in October 2026. The body made up of trade union and employer’s respective representatives will negotiate on pay, terms and conditions, and training and career progression. The first round of negotiations is due to begin in April 2027, with the first pay agreement targeted for April 2028.

Changes taking effect 30 October 2026: 

Strengthened Sexual Harassment Prevention Duty 

Employers will be required to take “all reasonable steps” to prevent sexual harassment of their employees a strengthening of the existing legal framework. Critically, third-party harassment is also brought within scope, employers must take reasonable steps to prevent harassment by customers, clients, contractors, and other third parties, not only by colleagues. 

The standard of what constitutes “all reasonable steps” will be set out in a statutory code of practice. Tribunals will assess compliance against that code. Employers who cannot demonstrate that they took concrete preventative steps risk assessments, training, clear reporting channels, and prompt responses to complaints will face greater difficulty defending claims. 

Enhanced Trade Union Rights 

Trade union measures have been enhanced to include: 

  • Employers must provide written statements to all new and existing workers, confirming their right to join a trade union 
  • Enhanced protections against blacklisting the practice of maintaining lists of trade union members to discriminate against them in recruitment or employment 
  • New industrial relations framework provisions affecting how trade unions engage with employers 
  • Extended electronic and workplace balloting for certain trade union votes 

Changes coming into force by January 2027:

Reduction of Qualifying Period for Unfair Dismissal Claim

From 1 January 2027, employees will be able to bring unfair dismissal claims after just six months of employment. The current provision is two-year qualifying period. This change applies to dismissals from 1 January 2027 onwards. 

Removal of Compensation Cap

These changes will fundamentally alter how employment disputes are valued and how quickly they arise. Any employee hired from June 2026 onwards will have gained unfair dismissal rights by January 2027. Businesses that have not reviewed their onboarding, probation management, and performance documentation processes are already behind. 

Conclusion

The Employment Rights Act 2025 introduces changes that are significant individually and substantial in combination. Extended limitation periods, a strengthened harassment duty with third-party scope, the removal of the unfair dismissal compensation cap, and a dramatically shortened qualifying period together create a UK employment law environment that is materially more demanding than the one that existed twelve months ago. For businesses operating across multiple jurisdictions including those managing UK employment alongside African and European operations the October 2026 wave is the immediate priority. The January 2027 changes require preparation now.

Legal review: Stella Igidi

Please contact us for more information and/or assistance with all legal matters.

Share the Post:

Related Posts

Scroll to Top