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Employment Rights Act 2025: What Employers Need to Do Next as More Changes Take Effect
Sarah Marten
For many employers, the Employment Rights Act 2025 can feel like a moving target. Just as businesses have got to grips with the changes introduced earlier this year, another wave of reforms is now on the horizon.
The good news is that most employers do not need to start from scratch. The businesses that are best prepared are focusing on practical steps now: reviewing policies, training managers, strengthening record-keeping, and making sure their people practices reflect the evolving legal landscape.
With further changes due to take effect during 2026 and into 2027, this is a good time to take stock and ask a simple question: is your business ready?
What should employers be preparing for?
Sexual Harassment
One of the most important upcoming changes come into force on 30 October 2026.
Employers will be required to take all reasonable steps to prevent sexual harassment in the workplace. In addition, businesses may be held responsible where employees are harassed by third parties such as customers, clients, contractors or visitors.
This is a significant shift in emphasis. Rather than simply responding to complaints after they arise, employers are expected to take proactive action to prevent issues from developing.
Practical steps employers should consider include:
- Reviewing anti-harassment and dignity-at-work policies.
- Providing up-to-date training for managers and staff.
- Creating clear reporting procedures.
- Risk Assessments, particularly in customer-facing environments.
- Setting clear expectations for customers and clients;
- Displaying zero-tolerance notices
- Recording the preventative measures being taken.
If a claim arises, being able to demonstrate the preventative steps taken before an incident occurred is likely to be just as important as the response afterwards.
Extended the Time Limits for Bringing a Claim in the Employment Tribunal
From 1 October 2026, the time limit for bringing most Employment Tribunal claims is expected to increase from three months to six months.
A longer claim window means organisations may need to retain evidence and documentation for longer periods and be prepared to respond to issues many months after an employee has left or a dispute first emerged.
Now is a sensible time to review:
- Personnel file management.
- Absence records.
- Disciplinary and grievance documentation.
- Investigation notes.
- Holiday and pay records.
Clear records remain one of the strongest tools available to employers when defending workplace disputes.
Trade union rights
From 30 October 2026 any independent trade union can demand access to workplaces with 21 or more employees in order to recruit new individuals for membership.
In addition, from January 2027 there will be a statutory obligation upon employers to give its employees a written statement confirming their right to join a trade union.
Failure to comply can lead to fines up to £500K for repeat offences.
Many employers will not have experience of directly dealing with trade unions. However, organisations with larger workforces, multiple sites, or existing union relationships should pay particular attention.
Employers should consider:
- Understanding how union access rights may operate within their business.
- Decide on a plan for right to access.
- Training managers on appropriate responses to union-related requests.
- Prepare the necessary wording to give to employees regarding their right to join a union.
Preparation is far easier than reacting to a request when it lands unexpectedly.
Unfair Dismissal
Looking ahead to 2027, unfair dismissal reforms are expected to become one of the most significant employment law developments for employers. The qualifying period for unfair dismissal protection will be shortened from 2 years to 6 months and the current compensation cap of 1 year’s salary or £123, 543 (whichever is lower) is to be removed.
Employers should be focusing on:
- Consistent recruitment and probation processes.
- Well-documented performance management.
- Effective manager training.
- Fair and transparent dismissal procedures.
Many businesses still rely on informal management approaches that worked when legal risks were lower. As employee protections expand, that approach becomes increasingly difficult to defend.
What is the biggest challenge for employers under the Employment Rights Act 2025?
The biggest challenge is not any single legal reform.
It is recognising that employment law is moving towards greater worker protection, stronger enforcement and increased employer accountability.
Businesses that treat compliance as a once-a-year exercise may find themselves constantly reacting to change. By contrast, organisations that embed good people practices, maintain accurate records and train managers regularly are far more likely to navigate the reforms successfully.
In many respects, the Employment Rights Act 2025 is not simply changing employment law. It is changing expectations around what good employment practices look like.
How Bermans can help
The Employment Rights Act 2025 continues to evolve, with further reforms expected throughout 2026 and 2027. Keeping up with these changes can be challenging, particularly for growing businesses balancing commercial priorities with workforce management.
If you are unsure whether your contracts, policies, management processes or workplace training are fit for purpose, the Bermans Employment team can help you assess your current arrangements and identify any areas that may need attention before new obligations take effect. A proactive review now could help avoid costly disputes and disruption further down the line.