Updated: 1 October 2026

The biggest employment law changes in a generation are already underway.

And from today, another significant change has taken effect.

From 1 October 2026, the time limit for bringing the majority of Employment Tribunal claims has increased from three months to six months for matters occurring on or after this date.

But this is only one part of a much wider programme of reform.

Further changes arrive on 30 October 2026, followed by significant reforms from 1 January 2027 and further measures throughout 2027.

These changes affect how employers manage sickness absence, workplace harassment, Employment Tribunal risk, probation periods, dismissals, contractual changes and more.

For many employers, particularly SMEs without dedicated HR teams, the biggest challenge isn’t simply understanding what the law says.

It’s making sure your policies, procedures, documentation and managers are ready to apply it correctly while you continue running your business.

Because the reality is simple:

Processes that may have worked in the past may no longer be enough.

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Most workplace disputes don’t begin because an employer deliberately ignores employment law.

They often begin because:

• a policy hasn’t been updated,

• a manager handles a situation informally,

• an important conversation isn’t documented,

• payroll follows an old process,

• a probation review is missed,

• or a business simply isn’t aware that the law has changed.

Under the Employment Rights Act reforms:

• the time limit for the majority of Employment Tribunal claims has now increased,

• employees will gain ordinary unfair dismissal protection much earlier,

• the cap on compensatory awards for unfair dismissal will be removed,

• employers will face stronger responsibilities around workplace harassment,

• and significant restrictions are being introduced around certain fire and rehire practices.

At the same time, changes to Statutory Sick Pay and other employment rights introduced earlier in 2026 should already be reflected in employers’ policies and processes.

For businesses, the issue isn’t simply knowing the dates.

It’s understanding what needs to change inside your organisation.

Across Cumbria, employers should now be asking themselves:

Are our contracts, policies and management processes actually ready?

5 Employment Law Changes Employers Need to Pay Attention To

1. Employment Tribunal Claim Windows Have Increased

From 1 October 2026, the time limit for bringing the majority of Employment Tribunal claims increases from three months to six months.

The new time limits apply where the relevant act, conduct or failure complained of occurs on or after 1 October 2026.

For employers, this means workplace issues could potentially result in a Tribunal claim much further down the line than previously expected.

Imagine:

A performance conversation takes place.

Very little is documented.

A grievance is handled informally.

Managers believe the issue has been resolved.

Months later, the issue develops into a claim.

By that point, memories may have faded.

Managers may have moved roles.

Emails or documents may be more difficult to locate.

And without a clear record of what happened, what was considered and why a decision was made, defending the business’s position can become much harder.

That makes good record keeping increasingly important.

Employers should consider whether they have appropriate systems for recording:

• performance conversations,

• grievances and complaints,

• disciplinary matters,

• absence discussions,

• probation reviews,

• reasonable adjustments,

• decisions to dismiss,

• and the reasons behind significant employment decisions.

The question employers should be asking is:

If a decision we make today is challenged several months from now, could we clearly demonstrate what happened and why?

2. Harassment Responsibilities Become Stronger on 30 October

The next major deadline is already approaching.

From 30 October 2026, employers will be required to take “all reasonable steps” to prevent sexual harassment of their employees.

This strengthens the existing preventative duty introduced in October 2024.

But another significant change is also coming.

Employers will have an obligation not to permit third parties to harass their employees.

Third parties could include:

• customers,

• clients,

• contractors,

• suppliers,

• service users,

• patients,

• visitors,

• or members of the public.

The third-party provisions are not limited solely to sexual harassment. They can also apply to other forms of harassment covered by the Equality Act 2010.

For customer-facing businesses in particular, this creates an important new area of risk.

It may no longer be enough to simply have an anti-harassment policy sitting in an employee handbook.

Employers should be considering whether they have taken appropriate preventative action.

That could include reviewing:

• workplace harassment risk assessments,

• anti-harassment policies,

• reporting and escalation procedures,

• employee and manager training,

• how complaints are investigated,

• how incidents are recorded,

• risks involving customers or clients,

• procedures for dealing with inappropriate third-party behaviour,

• and relevant customer, contractor or supplier arrangements.

Businesses operating in sectors such as hospitality, retail, leisure, healthcare and other customer-facing environments may want to pay particular attention to these changes.

Having a policy is one thing.

Being able to demonstrate that your organisation took all reasonable steps to prevent harassment is another.

With the new duty taking effect on 30 October, businesses have very little time left to review their approach.

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3. Unfair Dismissal Protection Arrives Much Earlier

One of the most significant changes for employers takes effect from 1 January 2027.

Currently, employees generally need two years’ qualifying service before they can bring a claim for ordinary unfair dismissal.

From January, that qualifying period reduces to six months.

For dismissals where the effective date of termination falls on or after 1 January 2027, the new rules will apply.

This means employees who have already completed six months’ continuous service by the start of January could gain ordinary unfair dismissal protection immediately.

The existing cap on compensatory awards for successful unfair dismissal claims will also be removed from 1 January.

This makes the first six months of employment significantly more important.

Employers should be looking closely at:

• recruitment decisions,

• onboarding,

• probation periods,

• performance expectations,

• regular review meetings,

• probation extensions,

• manager training,

• documented performance conversations,

• disciplinary procedures,

• and how decisions to dismiss are reached.

Consider an employee who is struggling during their probation period.

A manager has several informal conversations with them, but very little is recorded.

Objectives are unclear.

Formal reviews are delayed.

The probation period reaches six months without the business making a clear decision.

Under the new regime, that situation could carry considerably more risk.

This does not mean employers will be unable to dismiss employees who are unsuitable for a role.

Employers will still be able to dismiss for legitimate reasons.

But having a fair, consistent and well-documented process will become important much earlier in the employment relationship.

If your current probation process amounts to little more than an informal conversation near the end of six months, now is the time to review it.

4. Changing Employment Contracts Could Carry Greater Risk

Businesses change.

Roles evolve.

Working patterns move.

Responsibilities change.

And sometimes employers need to alter contractual terms to respond to genuine commercial circumstances.

However, new fire and rehire protections are due to take effect from 1 January 2027.

The Employment Rights Act significantly restricts the use of dismissal and re-engagement where an employee refuses to agree to certain changes to core contractual terms.

In specified circumstances, dismissals connected with those changes could be treated as automatically unfair.

There are limited exceptions relating to serious financial difficulties where the employer can demonstrate that making the contractual change was unavoidable.

The legislation also introduces protections relating to certain “fire and replace” situations.

For employers, the practical message is straightforward:

Changing employment contracts is becoming an increasingly sensitive area.

Before making significant contractual changes, businesses should consider:

• why the change is necessary,

• which contractual terms are affected,

• what evidence supports the commercial rationale,

• whether alternatives have been considered,

• how employees will be consulted,

• whether agreement can be reached,

• how the process will be documented,

• and whether specialist advice should be obtained before proceeding.

What may previously have been seen as a practical method of changing working arrangements could create substantially greater employment law risk if handled incorrectly.

If you’re considering significant contractual changes, getting advice before beginning the process could be far safer than trying to resolve a problem afterwards.

5. Statutory Sick Pay Changed in April – Have Your Processes Caught Up?

Not every Employment Rights Act change is still ahead of us.

Some have already been in force for months.

On 6 April 2026, significant changes to Statutory Sick Pay took effect.

Statutory Sick Pay is now payable from the first full day of sickness absence, rather than after a three-day waiting period.

The previous Lower Earnings Limit has also been removed, meaning eligible employees can qualify for SSP regardless of their earnings.

For employees, the amount payable is based on either the statutory flat rate or 80% of average weekly earnings, whichever is lower.

For employers, the question is no longer:

“When does this change?”

It is:

“Did we actually update everything when it changed?”

Businesses should already have reviewed:

• sickness and absence policies,

• payroll procedures,

• employee handbooks,

• manager guidance,

• references to waiting days,

• references to earnings thresholds,

• and internal communications about sick pay.

If those documents still refer to the old rules, employees could be given incorrect information and payroll processes may no longer reflect current legislation.

What looks like a relatively small administrative issue can quickly develop into an employee relations problem.

Do any of these areas need attention in your business?

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And There Are More Changes Still to Come

These five areas aren’t the end of the Employment Rights Act reforms.

The Government’s current implementation timetable includes further measures during 2027 relating to:

• flexible working,

• bereavement leave, including pregnancy loss,

• enhanced dismissal protections for pregnant employees and new mothers,

• guaranteed hours for qualifying workers,

• reasonable notice of shifts,

• payments relating to short-notice shift changes,

• collective redundancy requirements,

• gender equality and menopause action plans for qualifying employers,

• regulation of umbrella companies,

• and further workplace protections.

From 1 January 2027, employers will also begin to face a new duty to inform workers of their right to join a trade union, with further detail being introduced through secondary legislation.

Some of the detailed implementation requirements for measures coming later in 2027 are still being developed through regulations, consultation and official guidance.

That is important.

Businesses shouldn’t assume that every detail of every future reform is already fixed.

But they should make sure they understand the changes that have already taken effect and the confirmed changes immediately ahead.

Employment law is moving quickly.

Relying on the way things have always been done carries increasing risk.

Why Employers Should Be Reviewing Their Processes Now

The challenge isn’t necessarily any single employment law change.

It’s the cumulative effect.

April 2026: Statutory Sick Pay and other reforms.

1 October 2026: longer Employment Tribunal claim windows.

30 October 2026: stronger workplace harassment duties.

1 January 2027: major unfair dismissal and fire and rehire reforms.

Throughout 2027: further changes affecting employment practices.

For an SME without an internal HR or employment law team, keeping track of all of this while running a business can be difficult.

And employment issues rarely arrive at a convenient time.

A manager may suddenly need to know:

Can we dismiss this employee?

Should we extend this probation?

How should we respond to this complaint?

Does our harassment policy go far enough?

Can we make this contractual change?

What happens if an employee refuses?

How should we deal with inappropriate behaviour from a customer towards an employee?

The time to find out that a process is wrong isn’t after a decision has already been made.

Having somewhere to turn for expert support can make a significant difference.

Already a Chamber Member? Use the Support Included in Your Membership

If you’re already a Cumbria Chamber of Commerce member, you don’t need to navigate these changes alone.

Chamber Protect provides members with access to specialist support across HR, Legal, Health & Safety and Tax.

Membership includes:

• unlimited HR advice,

• legal advice,

• tax and VAT support,

• health and safety advice,

• access to an online library of more than 750 template documents,

• and legal expenses insurance providing cover of up to £100,000 per claim and £1 million in total, subject to the terms of the policy.

Members can use the service for support with issues including:

• sickness absence,

• probation and performance management,

• disciplinary procedures,

• grievances,

• redundancy planning,

• workplace disputes,

• harassment concerns,

• employment policies