EMPLOYMENT RIGHTS ACT 2025
Employment Rights Act 2025: October is here
October brings the next significant phase of the Employment Rights Act 2025 implementation, with employers facing changes to Employment Tribunal time limits, harassment law and trade union rights. HR teams also need to look beyond October, as preparation for the new unfair dismissal regime should already be under way.
From 1 October 2026, the normal limitation period for most Employment Tribunal claims increases from three months to six months. Employment disputes will therefore remain live for longer. Employers should review document-retention arrangements, preserve relevant evidence and avoid assuming that litigation risk has passed simply because three months have elapsed.
A larger package takes effect on 30 October. The existing duty to take reasonable steps to prevent sexual harassment will become a duty to take all reasonable steps. A policy and periodic training may form part of the answer, but employers must consider what other preventative measures are reasonably available.
Employers will also face liability for harassment by third parties where they have failed to take all reasonable steps to prevent it. This could involve customers, clients, patients, service users or contractors. Importantly, the protection extends beyond sexual harassment and can include relevant harassment connected with other protected characteristics.
The trade union reforms include a new statutory framework for physical and digital workplace access, changes to recognition procedures, stronger rights for workplace representatives and protection against detriment connected with protected industrial action. Some final detail remains dependent on regulations and Codes, but employers should begin allocating responsibility for these issues now.
As of 25 September, we have also now learnt that the requirement to inform workers of their right to join a union (which was planned for 30 October) has been pushed to 1 January 2027.
Looking ahead to 2027, then, the ordinary unfair dismissal qualifying period falls from two years to six months on 1 January 2027, while the statutory cap on compensatory awards will be removed. This is not a general day-one right, but it makes effective probation management much more important. The employees who will have six months’ service on 1 January are already in employers’ workforces.
We will be exploring these developments at HR Matters Live in London on 6 October and were discussed in our September Bitesize webinar. Our detailed half-day training session in November will then focus on preparing probation, performance-management and dismissal processes for the January changes.
