LOOKING AHEAD…
In addition to the major changes in the Employment Rights Act 2025 relating to unfair dismissal rights, there are a plethora of other changes coming down the track in 2026. We highlight some key ones here:
1. DAY 1 PATERNITY AND PARETNAL LEAVE (EXPECTED 1 APRIL 2026)
Paternity leave and unpaid parental leave rights will be available from day 1 of employment.
It will be important to update policies and ensure managers are aware of the new rights when they come into force.
2. STRICTER DUTIES TO PREVENT SEXUAL HARASSMENT AND THIRD-PARTY HARASSMENT
The ‘duty to prevent’ will be strengthened further and employers will be required to take “all” reasonable steps to prevent workplace harassment. There is still a lack of clarity over what exactly “all” means, but larger employers are likely to face tougher scrutiny / be expected to have clear preventative measures in place.
To compound matters, making a report of sexual harassment will be added to the list of what constitutes a protected disclosure.
Additionally, employers are set to become liable for third party harassment unless they have taken reasonable steps to prevent this. This covers all types of harassment not just sexual harassment.
In view of this, training staff on what constitutes harassment will be the minimum. Clear policies, proper handling of complaints, and dismissing perpetrators will be other requirements. As will clear indicators that the business takes a zero tolerance to harassment.
We recommend that employers go further and audit commercial contracts with third parties to ensure these contain anti-harassment provisions. Consideration should also be given to what other measures can be put in place (e.g. clear signage, ensuring customer facing staff know who they can speak to if they experience harassment.)
3. BAN ON FIRE AND REHIRE FROM 1 OCTOBER 2026
The government will be imposing a ban on ‘fire and rehire’ (or ‘dismissal and reengagement on new terms’) except where there is no other viable option to ensure the survival of the business and where a proper procedure has been followed.
The statutory code introduced by the previous Government will also be updated.
The ban will make it much riskier to force through changes to contractual terms by terminating and offering re-engagement. Employers should consider implementing any large-scale change processes now (e.g. to shift patterns), prior to the changes taking effect.
4. EXTENSION OF TIME LIMIT FOR ISSUING TRIBUNAL CLAIM – FROM 3 MONTHS TO 6 MONTHS
We expect this change to come into effect in October 2026. This will apply to all types of claims, including discrimination and unfair dismissal. Some are predicting that we might see more claims as a result; however, typically if any individual is going to bring a claim, they are likely to do it within the first 3 months of leaving their employment/ of the act they are complaining about. On the positive side, it is to be hoped that Tribunals will be less likely to exercise discretion to allow out of time claims once the time limit is increased, which may provide for more certainty.
Of course, a 6-month time-limit, plus a longer ACAS conciliation period, means that you might not realise someone is bringing a tribunal claim until you are 9-12 months down the line. Accordingly, keeping employee records for at least 12 months will therefore be justified (and you have an obligation to keep certain data e.g. in relation to pay, for at least 6 years anyway).
