The next phase of the Employment Rights Act 2025 came into force on 30 October 2026, bringing with it some of the most significant workplace reforms employers have faced in recent years.
Employers will now face enhanced obligations in relation to workplace harassment, including a new duty regarding harassment by third parties such as customers, clients and suppliers.
Employment Tribunal Time Limits Have Doubled
Before turning to the October reforms, employers should be aware that one significant change has already been in force from 1 October 2026. The time limit for bringing most Employment Tribunal claims increased from three months to six months. This applies to a wide range of claims, including unfair dismissal, discrimination and wrongful dismissal claims.
This means that employers are likely to face claims relating to events that occurred much further in the past. Record keeping and appropriate document retention policies will be very important.
A Higher Standard for Preventing Sexual Harassment
The most significant change from 30 October 2026 concerns workplace sexual harassment.
Since October 2024, employers have been under a duty to take “reasonable steps” to prevent sexual harassment. From 30 October 2026, the legislation raised the bar and now requires employers to take “all reasonable steps” to prevent sexual harassment of their workers.
The change may appear modest, but in practice, it represents a material shift in the standards expected of employers. The question will no longer simply be whether an employer took some reasonable preventative measures. Instead, it will be whether there were additional reasonable steps available that should have been taken by the employer.
For example, having a sexual harassment policy and providing annual training may previously have been considered sufficient. Going forward, employers may be expected to consider additional measures such as:
- enhanced manager training;
- anonymous reporting mechanisms;
- third-party conduct policies;
- regular monitoring of complaints and trends;
- refreshed risk assessments; and
- targeted training for specific teams or high-risk workplace environments.
The Government has confirmed that what amounts to “all reasonable steps” will depend on the circumstances of each employer, including its size, resources and working environment.
However, recent Tribunal decisions suggest that employers will need to demonstrate genuine implementation rather than simply relying on policies sitting on a shelf.
Practical Steps
Employers should now consider:
- refreshing workplace risk assessments;
- reviewing harassment policies;
- move towards training programmes;
- maintaining clear training records;
- reviewing internal reporting channels; and
- ensuring senior leadership visibly supports anti-harassment initiatives.
New Liability for Third-Party Harassment
Another significant development is the introduction of employer liability for harassment of employees by third parties. Employers can now be liable where workers are subjected to unlawful harassment by customers, clients, contractors, suppliers or other third parties. This protection extends beyond sexual harassment and applies to all protected characteristics under the Equality Act 2010.
This means that inappropriate conduct by a customer, a discriminatory remark from a supplier or harassment by a contractor could all give rise to legal risk for employers.
Note, there is no requirement for a previous incident to have occurred. The duty applies immediately, meaning employers are expected to take proactive steps rather than waiting until issues arise.
This will be particularly important for employers operating in:
- retail;
- hospitality;
- healthcare;
- leisure; and
- other customer-facing industries.
Practical Steps
To prepare, employers should now consider:
- updating anti-harassment policies;
- reviewing supplier and contractor agreements;
- introducing clear escalation procedures for employees;
- training managers and customer-facing staff;
- incorporating third-party scenarios into training programmes; and
- displaying appropriate behavioural standards in customer-facing environments.
Trade Union Reforms Arrive
A substantial package of trade union reforms has taken effect on 30 October 2026. The most significant change has been the introduction of a new statutory right for trade unions to access workplaces, including through digital channels. The reforms also strengthen protections for trade union representatives, reform recognition and derecognition processes and extend protections for employees participating in industrial action.
Although these changes may have limited impact on some employers in the short term, organisations without an established union presence should not assume they can be ignored.
A more accessible route for trade unions to engage with workers may increase union activity in sectors that have historically experienced low levels of unionisation.
Practical Steps
Employers should consider:
- identifying who will respond to union access requests;
- reviewing employee engagement strategies;
- assessing existing employee consultation mechanisms; and
- preparing for increased interaction with trade unions where relevant.
Looking Ahead
Further changes are expected during 2027, including proposed day-one unfair dismissal rights and restrictions on “fire and rehire” practices.
Employers should now focus on ensuring they have adapted to the changes introduced on 30 October 2026. Organisations should assess whether their existing harassment prevention measures, reporting procedures and workplace policies would withstand scrutiny if challenged before a Tribunal.
The message from the Government is clear: employers are increasingly expected to take proactive steps to prevent workplace issues before they arise, rather than simply reacting after the event.
