Updated: 1 September 2026

The 5 Changes Employers Are Most Likely to Get Wrong — And What Could Happen If They Do

The Employment Rights Act is no longer something employers can prepare for “later”.

Implementation is already underway.

Important changes to Statutory Sick Pay came into force in April 2026, with the next major reforms arriving in October 2026 and further significant changes following from January 2027.

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

Some changes are already law.

Others are only weeks away.

And 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 and managers are ready to apply it correctly while you continue running your business.

Because the reality is simple:

Getting it wrong could become significantly more costly.

Get Expert Help Preparing Your Business

Why These Changes Matter Now

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

They often start 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:

• time limits for most Employment Tribunal claims are increasing,
• more employees will gain unfair dismissal protection earlier,
• the cap on compensatory awards for unfair dismissal is being removed,
• employers will face strengthened responsibilities around workplace harassment,
• and significant restrictions are being introduced around certain fire and rehire practices.

A process that may have worked perfectly well in the past may no longer be enough.

And with several major changes arriving within months of each other, now is the time for employers to check that their contracts, policies and management processes are ready.

Across Cumbria, businesses are already asking the same question:

“Are we actually prepared for this?”

What Happens If You Get It Wrong?

Consider a simple example.

An employee is struggling during their probation period.

A manager has several informal conversations with them, but very little is documented. Their objectives are unclear, formal reviews are delayed, and the correct procedure isn’t consistently followed.

Previously, an employee would generally have needed two years’ service before gaining ordinary unfair dismissal protection.

From 1 January 2027, that qualifying period reduces to just six months.

An employee who has already completed six months’ service by that date could gain protection immediately.

Suddenly, the quality of your probation process, performance records and management decisions becomes much more important much earlier in the employment relationship.

The same principle applies across absence management, harassment complaints and changes to employment contracts.

Many disputes don’t begin with conflict.

They begin with outdated information, inconsistent processes or missing documentation.

The 5 Changes Employers Are Most Likely to Underestimate

1. Employment Tribunal Deadlines Are About to Double

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

For employers, that means workplace issues could return much later than you might previously have expected.

Imagine:

• a performance conversation takes place,
• notes aren’t properly recorded,
• a grievance is dealt with informally,
• managers believe the issue has been resolved,
• several months later, a claim is brought.

By that point, memories may have faded.

Managers may have moved roles.

Documents may be harder to locate.

And without a clear record of what happened and why, defending the decisions your business made can become significantly harder.

This makes good record-keeping, documented management decisions and consistent HR procedures increasingly important.

The question employers should be asking now is:

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

2. Harassment Responsibilities Are Getting Stronger

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

The law will also extend employer liability to harassment carried out by third parties — such as customers, clients, contractors, service users or members of the public — unless the employer has taken all reasonable steps to prevent it.

For many customer-facing businesses, this could require a change in approach.

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

Employers may need to consider:

• workplace harassment risk assessments,
• reporting and escalation procedures,
• manager and employee training,
• how incidents are recorded,
• how complaints are investigated,
• risks created by customers, clients or members of the public,
• and whether relevant customer, supplier or contractor terms need updating.

The focus is increasingly on prevention, rather than simply reacting after an incident has occurred.

This is particularly important for businesses operating in hospitality, retail, leisure, healthcare and other environments where employees regularly interact with third parties.

Having a policy is one thing.

Being able to demonstrate that you have taken appropriate steps to prevent harassment is another.

3. Unfair Dismissal Protection Arrives Much Earlier

From 1 January 2027, the qualifying period for ordinary unfair dismissal protection reduces from two years to six months.

Employees who already have at least six months’ continuous service on 1 January 2027 will gain ordinary unfair dismissal protection from that date.

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

For employers, this makes the first six months of employment particularly important.

Businesses should be looking carefully at:

• probation periods,
• onboarding processes,
• performance objectives,
• probation reviews,
• manager training,
• documented performance conversations,
• disciplinary processes,
• and how decisions to dismiss are reached and recorded.

A poorly managed probation period could become significantly more difficult to deal with once an employee reaches six months’ service.

This does not mean employers cannot dismiss employees who are unsuitable for a role.

It means having fair, consistent and well-documented processes becomes even more important.

If your current approach to probation is an informal conversation shortly before the employee’s six-month anniversary, now is a good time to review it.

4. Changing Employment Contracts Could Carry Greater Risk

Businesses change.

Roles evolve.

Working hours move.

Responsibilities change.

Sometimes employers need to vary contractual terms to respond to changing commercial circumstances.

From January 2027, new protections around so-called “fire and rehire” practices are due to take effect.

The Employment Rights Act significantly restricts the circumstances in which employers can dismiss employees who refuse to agree to certain contractual changes and then re-engage them — or replace them — on altered terms.

There are limited exceptions, including circumstances involving serious financial difficulties, but employers will need to approach contractual changes carefully.

That means decisions which might previously have been viewed as a practical way of changing working arrangements could create significant employment law risk if handled incorrectly.

Before changing important contractual terms, employers should consider:

• why the change is necessary,
• what contractual terms are affected,
• whether alternatives are available,
• how employees will be consulted,
• what evidence supports the business rationale,
• and whether specialist advice should be obtained before proceeding.

Changing a contract is not simply an administrative exercise.

For some businesses, it could become one of the most legally sensitive employment decisions they make.

5. Day-One Sick Pay Is Already Here — Have Your Processes Caught Up?

Not every Employment Rights Act change is still in the future.

The rules around Statutory Sick Pay changed on 6 April 2026.

Eligible employees can now receive Statutory Sick Pay 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, widening eligibility for Statutory Sick Pay.

For employers, the question is no longer:

“When does this change?”

It is:

“Have our processes actually been updated?”

Businesses should already have reviewed:

• sickness and absence policies,
• payroll procedures,
• employee handbooks,
• guidance given to managers,
• references to waiting days,
• and references to earnings thresholds.

An outdated policy could lead to managers giving employees incorrect information or payroll applying rules which no longer reflect current legislation.

What appears to be a small administrative mistake can quickly become an employee relations issue.

Do any of these points resonate with your business?

Get Expert Help Preparing Your Business

And There Are More Changes Still to Come

These five areas are not the end of the Employment Rights Act reforms.

Further measures expected during 2027 include changes 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 and payments relating to short-notice changes,
• collective redundancy requirements,
• and further workplace protections.

Some implementation details will continue to be developed through regulations, consultation and official guidance.

That makes it increasingly difficult for business owners and managers to rely on what they have always done.

Employment law is moving quickly — and keeping policies up to date is becoming an ongoing responsibility.

Why Employers Are Seeking Support Now

The biggest challenge isn’t any single change.

It’s the cumulative effect.

April 2026.

October 2026.

January 2027.

And further reforms throughout 2027.

Most business owners don’t have the time to continually monitor legislation, consultations and updated guidance while also running their organisation.

And many smaller businesses don’t have an internal HR or employment law team they can turn to when an issue arises.

That can leave managers second-guessing decisions at precisely the moment they need clarity.

Should we extend this probation?

Can we dismiss this employee?

How should we deal with this complaint?

Does this policy need updating?

What happens if an employee refuses a contractual change?

What should we do about harassment involving a customer?

These are exactly the situations where having access to expert support can make a real difference.

Already a Chamber Member? This Support Is Included in Your Membership

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

Through Chamber Protect, delivered by Quest, Chamber members have access to expert support when HR, employment law and other business issues arise.

Your membership includes access to:

• unlimited HR advice phone support,
• legal guidance,
• tax and health & safety advice,
• more than 750 template documents and policies,
• and up to £1 million legal expenses insurance cover, subject to the terms of the service.

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,
• employee handbook and policy updates,
• and other HR and employment law questions.

Instead of relying on outdated information or second-guessing a difficult decision, you can speak to experienced advisers and get support when you need it.

With major employment law changes approaching, now is a good time to make sure you’re getting the full value from the support already included in your membership.

Not a Member? Employment Law Support Is Just One of the Benefits

If your business employs people but doesn’t have a dedicated HR or employment law team, Chamber membership can provide an additional layer of support and reassurance.

Chamber Protect is included as part of Cumbria Chamber membership alongside a wider package of business support, connections, events, representation and member benefits.

And with employment legislation changing significantly throughout 2026 and 2027, having somewhere to turn before making an important decision could be more valuable than ever.

Don’t wait until something has gone wrong before asking for help. At that point, it’s too late.

Prepare Now — Before the Next Changes Arrive

Employment law doesn’t need to feel overwhelming.

But waiting until a complaint, grievance, dismissal or Tribunal claim appears is rarely the best time to discover that a policy is out of date.

The next major Employment Rights Act changes arrive in October 2026, followed by significant reforms from January 2027.

That allows employers to act now.

Review your policies.

Check your procedures.

Make sure managers understand what’s changing.

And know where to turn when you’re unsure.

With the right preparation and expert support, these changes can be managed with confidence.

Get Expert Help Preparing Your Business

Whether you’re already a Cumbria Chamber member or you’d like to understand the support available through membership, we’re here to help.

Complete the short form below and a member of the team will contact you to discuss your business, the Employment Rights Act changes and the support available to you.

 Fill out the form below and request your Employment Law Readiness Review today.