Employment law in the UK is undergoing some of its most significant changes in recent years. A number of important reforms have already taken effect, with further changes expected in 2027 that will affect how employers manage their workforce and the rights available to employees.
The Employment Rights Act 2025 is at the centre of these developments, introducing changes to unfair dismissal rights, workplace harassment protections, Employment Tribunal time limits and trade union rights.
We examine some of the key developments and what they mean in practice for employers and employees.
Employment Tribunal time limits extended to six months
One of the most significant changes took effect on 1 October 2026, when the time limit for bringing most Employment Tribunal claims increased from three months to six months, less one day.
The change applies to claims arising from acts occurring on or after 1 October 2026. The previous three-month time limit generally continues to apply where the relevant act occurred before that date, making it important to establish precisely when the circumstances giving rise to a claim occurred.
For employees, the extension provides additional time to consider their options, seek legal advice and attempt to resolve disputes before commencing proceedings.
For employers, however, it means that potential claims may arise considerably longer after an incident or dismissal. Businesses should therefore ensure that relevant employment records, correspondence and evidence are retained appropriately. Employers should also consider whether internal grievance and appeal procedures can be concluded within a reasonable period, potentially allowing disputes to be resolved without tribunal proceedings.
Importantly, employees should not assume that every Employment Tribunal claim is subject to the new six-month deadline. For example, employees seeking interim relief following certain automatically unfair dismissals, including whistleblowing-related dismissals, must generally submit their application within seven days of termination.
ACAS Early Conciliation requirements also continue to apply to most other claims, and internal grievance or appeal procedures do not stop the limitation period from running.
Stronger protections against workplace harassment
From 30 October 2026, employers have been subject to strengthened obligations to protect workers from harassment.
Previously, employers were required to take “reasonable steps” to prevent sexual harassment in the workplace. That obligation has now been strengthened to require employers to take all reasonable steps.
The changes also introduce liability for harassment by third parties, such as customers, clients and contractors, unless the employer can establish that it took all reasonable steps to prevent the harassment.
The implications extend beyond having a written harassment policy. Employers should consider whether their existing arrangements adequately address the risks faced by employees, particularly those whose roles involve regular interaction with members of the public.
Employers should identify where harassment is most likely to arise, carry out appropriate risk assessments and consider what preventative measures are necessary. This may include providing training to managers and employees, reviewing reporting procedures and ensuring that complaints are investigated promptly and effectively.
For businesses in sectors involving regular customer contact, particular consideration should be given to how complaints involving customers or other third parties will be managed and what steps can be taken to prevent further incidents.
Unfair dismissal rights to change from January 2027
Further significant reforms are scheduled to take effect on 1 January 2027.
Currently, employees generally need two years’ continuous service before they can bring an ordinary unfair dismissal claim, subject to exceptions.
From 1 January 2027, that qualifying period will reduce to six months for dismissals taking effect from that date.
This represents a substantial expansion of unfair dismissal protection and will require employers to pay closer attention to dismissal decisions involving employees with relatively short periods of service.
Employers should review their probationary periods and consider whether existing arrangements provide sufficient opportunity to identify and address performance or conduct concerns. Setting clear expectations, conducting regular reviews and documenting concerns as they arise will become increasingly important.
Where an employee has acquired unfair dismissal protection, employers will need to establish a potentially fair reason for dismissal and follow an appropriate procedure, even where the employee remains within a contractual probationary period.
Removal of the compensatory award cap
Another significant change is the removal of the statutory cap on compensatory awards for unfair dismissal.
At present, compensation for ordinary unfair dismissal is generally limited to the lower of 52 weeks’ gross pay or the applicable statutory maximum.
Removing that cap could substantially increase an employer’s financial exposure, particularly where a successful claimant has substantial earnings or experiences a prolonged period of unemployment.
Claims may also involve losses relating to pension contributions, bonuses, share incentives and other employment benefits, where recoverable.
However, this does not mean that compensation will automatically increase in every case. Employment Tribunals will continue to assess compensation by reference to the employee’s actual financial losses and the applicable legal principles, including the duty to mitigate loss.
For employers, these changes make it particularly important to assess the legal and financial risks before proceeding with a dismissal. This includes considering whether there is a potentially fair reason for dismissal, whether an appropriate procedure has been followed and the extent of any financial losses the employee might reasonably claim.
The removal of the compensation cap may also influence settlement negotiations. Employers and employees should ensure that any proposed settlement reflects a realistic assessment of the potential claim, taking account of the circumstances of the dismissal, the employee’s remuneration and their prospects of obtaining alternative employment.
Seeking advice at an early stage may help employers identify weaknesses in a proposed dismissal process and, where appropriate, explore alternatives before a dispute arises.
Trade union rights strengthened
Changes introduced on 30 October 2026 have also strengthened aspects of trade union law.
One significant development is the introduction of a statutory framework allowing independent trade unions to request access to workplaces to communicate with workers, provide information and seek support for trade union membership.
Importantly, a trade union does not need to be formally recognised by an employer before requesting access.
Access may be physical, digital or a combination of both. Employers receiving a formal request will generally have 15 working days to respond, with a further negotiation period available to agree appropriate arrangements.
Where agreement cannot be reached, the Central Arbitration Committee may determine whether access should be granted and on what terms.
However, the Committee’s power to impose an access agreement is subject to a threshold of 21 workers, assessed in accordance with the statutory rules. Smaller employers may therefore be outside the compulsory access arrangements, although this does not remove their other obligations relating to trade union rights.
For employers potentially affected by the new access arrangements, it will be important to identify who within the organisation is responsible for responding to requests and consider how access could be facilitated without unnecessarily disrupting business operations. For example, employers may need to consider the availability of meeting rooms or suitable digital communication arrangements.
The reforms also strengthen rights relating to trade union representatives, including provisions concerning paid time off and workplace facilities.
A further change, expected from 1 January 2027, will require employers to provide workers with written information about their right to join a trade union.
Under the Government’s current implementation guidance, new workers are expected to receive this information alongside their written employment particulars, with arrangements for existing workers to receive it by 5 April 2027. Further secondary legislation will confirm the detailed requirements.
Employers should therefore consider how the information will be incorporated into their recruitment and induction documentation and how it will be communicated to their existing workforce.
Supreme Court clarifies protection for part-time workers
Alongside legislative reform, recent case law has provided important clarification of existing employment rights.
In Augustine v Data Cars Limited [2026] UKSC 30, the Supreme Court considered the protection available to part-time workers under the Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000.
The case concerned a part-time driver who was required to pay the same weekly fee for access to a booking system as full-time drivers. Although the fee was identical, it represented a greater cost per hour worked for part-time drivers.
The Supreme Court confirmed that part-time status does not need to be the sole reason for less favourable treatment. It is sufficient for that status to be an effective cause of the treatment.
The judgment is particularly relevant to employers operating arrangements that apply identical conditions to full-time and part-time workers but may disadvantage those working fewer hours.
Employers should consider whether their pay arrangements, benefits and workplace policies treat part-time workers fairly and whether any differences in treatment can be objectively justified.
What should employers and employees do next?
With several important reforms already in effect and further changes approaching, keeping employment practices and procedures under review will be increasingly important.
Employers should prioritise reviewing their dismissal and performance management procedures, ensuring that managers understand the shorter qualifying period for unfair dismissal claims and that relevant decisions are properly documented.
Businesses should also consider whether their existing harassment prevention measures are adequate and whether they have appropriate procedures in place to manage trade union access requests.
For employees, the changes provide additional protections in several areas, but understanding when those rights apply and the relevant time limits remains important.
Where workplace concerns arise, obtaining legal advice early can help both employers and employees understand their options and potentially resolve matters before they escalate into formal disputes.
How Eric Robinson Solicitors can help
At Eric Robinson Solicitors, our Employment Law team advises both employers and employees on a wide range of workplace matters, including unfair dismissal, redundancy, discrimination, settlement agreements and Employment Tribunal proceedings.
Whether you are an employer seeking guidance on the latest legal changes or an employee concerned about your rights at work, we can provide clear, practical advice tailored to your circumstances.
If you require advice on an employment law matter, please contact our Employment Law team to discuss how we can assist.
This article provides general information about employment law in England and Wales as at 2 November 2026 and is not intended to constitute legal advice. Future commencement dates and detailed requirements remain subject to change.
