A New ERA: Preparing Employers for the October 2026 Changes

The Employment Rights Act 2025 continues to drive significant change across the employment law landscape. Following the first wave of reforms introduced earlier this year, a further package of significant changes will take effect during October 2026, with additional reforms expected throughout 2027. This article looks at the changes coming in this October 2026, and how employers can prepare for this.

The priority should be to prepare as early as possible. Reviewing policies, updating employment documentation and training managers now will help reduce legal risk, avoid costly disputes and ensure your business is ready for the new compliance requirements.

What has already changed?

A number of important employment law changes are already in force. Since April 2026, the government has extended Statutory Sick Pay by removing the lower earnings limit and waiting period, and it has made paternity leave and unpaid parental leave day-one rights. Employers must now also retain holiday entitlement and holiday pay records for at least six years, and the newly established Fair Work Agency oversees compliance.

What comes next?

1 October 2026: Employees have longer to bring Tribunal claims

From 1 October 2026, employees will have six months rather than three months to bring most claims in the Employment Tribunal.

This change has practical consequences for employers. Businesses will need to review their document retention policies and ensure that personnel files, disciplinary, grievance, absence, performance notes and redundancy consultation documents are retained for longer as these documents may well be required to defend claims long after an individual’s employment has ended.

The retention of records will still need to be justified under data protection legislation, so employers will also need to document their reasons for holding such records for a longer period, rather than applying an indefinite retention period to documentation.

Employer action: Review HR record retention periods, and train managers to keep clear, contemporaneous records of workplace issues.

30 October 2026: Stronger duty to prevent harassment

In October 2024, the Worker Protection Act 2023 came into force which required employers to anticipate the risk of sexual harassment occurring and take “reasonable steps” to prevent it. The Employment Rights Act 2025 contains measures to strengthen these protections with the objective to make the workplace safer for everyone.

From 30 October 2026, employers must take “all reasonable steps” to prevent:

• sexual harassment in the workplace, and
• harassment in the workplace from a third party, including customers, clients and contractors. This protection will also apply to harassment related to age, disability, religion or belief, sex and sexual orientation.

The word ‘all’ signals a higher threshold for employers. Regulators have not yet published regulations setting out what counts as ‘reasonable steps’, but they expect to publish them in 2027 after a public consultation.

Employer action: Review and update anti-harassment policies, deliver meaningful refresher training for all staff and ensure reporting procedures are clear, well publicised and consistent across related policies. Carry out thorough risk assessments – be proactive in considering risks, higher risk scenarios and tailor risk assessments according to sector and role. Document actions taken.

30 October 2026: New trade union rights

October also brings substantial changes to trade union legislation, particularly for employers with recognised unions or larger workforces.

The key changes coming into force include:

• A new duty to inform employees of their right to join a trade union.
• Statutory rights for trade unions to access workers both physically and digitally. Businesses employing less than 21 workers are exempt.
• Enhanced paid time off and workplace facilities for trade union representatives, including equality representatives.
• Greater protection from detriment for employees taking part in protected industrial action.

These reforms are likely to increase engagement between employers and trade unions and will require businesses to adopt more structured employee relations processes.

Employer action: Review onboarding documentation, prepare for potential union access requests and train managers on managing industrial relations in line with the new ACAS Code of Practice: Right of trade unions to access workplaces.

Public Sector outsourcing: Ending the two-tier workforce (England only)

Employers delivering outsourced public sector services in England should also prepare for new two-tier workforce protections.

The forthcoming regulations (expected in October 2026) will require contracting authorities to take all reasonable steps to ensure that private sector employees working on outsourced public contracts receive terms and conditions that are no less favourable than colleagues who have transferred from the public sector.

Employer action: Review workforce models, pricing assumptions and subcontracting arrangements before bidding for or renewing public sector contracts.

Contact us

If you need help with the ERA, contact our employment law team.