Employment Rights Act: What Changes for Employers on 30 October and 1 January
From 30 October 2026 employers must take "all reasonable steps" to prevent sexual harassment, including by customers. From 1 January 2027 the unfair dismissal qualifying period falls from two years to six months.
By Entrepreneur Group · Published · Updated
The next big changes under the Employment Rights Act 2025 arrive in the coming weeks. From 30 October 2026, employers must take "all reasonable steps" to prevent sexual harassment of their workers, and become liable for harassment by third parties such as customers unless they took reasonable steps to prevent it. From 1 January 2027, the qualifying period for unfair dismissal falls from two years to six months, and the cap on compensation is removed.
These dates come from Acas, whose guidance was last updated on 20 October 2026. The government has revised its roadmap several times since July 2025, as Lewis Silkin notes, so check the Acas page before acting on any date.
What has already changed in 2026
Several changes are already in force. According to Acas:
- 6 April 2026: paternity leave and unpaid parental leave became day-one rights, and statutory sick pay became payable from the first day of illness, with the lower earnings limit removed. Employers must now keep annual leave and holiday pay records for at least six years.
- 7 April 2026: the Fair Work Agency was established.
- 1 October 2026: the time limit for most employment tribunal claims rose from three months to six. Problems that began before that date may still be subject to the three-month limit.
What changes on 30 October 2026
- Harassment. Employers must take all reasonable steps to prevent sexual harassment. They will be liable for third-party harassment, for example by customers or clients, unless they took reasonable steps to prevent it. Acas says the law will later define what "reasonable steps" means.
- Trade unions. Updated rules on union access to workplaces, a new recognition Code of Practice, new rights to facilities and time off for some union representatives, and protection against less favourable treatment for workers taking industrial action.
What changes in January 2027 and later
- 1 January 2027: the unfair dismissal qualifying period drops from two years to six months and the compensation limit is removed. Acas notes the government changed the plan from a day-one right to a six-month period. Employers must also tell workers about their right to join a trade union.
- January 2027 (expected): dismissing and re-engaging staff on worse terms ("fire and rehire") becomes automatically unfair in most cases.
- By the end of 2026: employers must consult workers before creating or reviewing a tipping policy, and review it at least every three years.
- During 2027 (no dates yet): rights to guaranteed hours and compensation for cancelled shifts for zero-hours and low-hours workers, stricter rules for refusing flexible working requests, unpaid bereavement leave, and mandatory menopause and gender pay gap action plans for employers with 250 or more workers.
A checklist for small employers
This section is editorial guidance, not legal advice. Take professional advice on your own circumstances.
- Harassment. Write or update a short anti-harassment policy, train managers, and decide how staff can report harassment by customers or clients. Keep a record of the steps you take.
- Probation periods. With the unfair dismissal qualifying period falling to six months, make sure probation reviews are real conversations with written records, held well before the six-month point.
- Contracts. If you rely on zero-hours or variable-hours contracts, start reviewing them now, even though dates for those changes have not been set.
- Tipping. If you run a hospitality business that shares tips, plan a consultation with staff before the end of the year.
Frequently asked questions
What changes for employers on 30 October 2026?
Employers must take all reasonable steps to prevent sexual harassment of workers and become liable for harassment by third parties, such as customers, unless they took reasonable steps to prevent it. New trade union access and representation rules also start.
When does the unfair dismissal qualifying period change?
From 1 January 2027, the qualifying period for unfair dismissal falls from two years to six months, and the limit on compensation is removed, according to Acas.
How long do employees have to bring a tribunal claim?
From 1 October 2026, the time limit for most employment tribunal claims increased from three months to six months. Problems that began before that date may still be subject to the three-month limit.
Sources
- Acas: Employment Rights Act 2025 (page updated 20 October 2026) (reviewed 27 October 2026)
- Lewis Silkin: Employment Rights Act timeline (23 October 2026) (reviewed 27 October 2026)