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HR & Employment

UK Employment Rights Act 2025: What Changes for Employers in October 2026 and January 2027

The UK's biggest employment law reform in a generation is arriving in stages. What has already changed, what starts on 30 October 2026 and what employers must prepare for in January 2027.

HR & EmploymentUpdated 21 October 20263 min read
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The Employment Rights Act 2025 is being brought into force in phases through 2026 and 2027. For Pakistani and Gulf groups with UK staff, the next steps are close: a stronger duty to prevent sexual harassment takes effect on 30 October 2026, and from 1 January 2027 employees gain unfair dismissal protection after six months instead of two years. The dates below are from the UK government's timeline update of 14 October 2026; future dates remain subject to Parliament.

Already in force

DateChange
6 April 2026Statutory Sick Pay from the first day of sickness, with the Lower Earnings Limit removed; Paternity Leave and Unpaid Parental Leave as "day one" rights; the maximum collective redundancy protective award doubled; stronger whistleblowing protection for reports of sexual harassment
7 April 2026The Fair Work Agency established
1 October 2026Time limit for bringing an Employment Tribunal claim increased from 3 to 6 months (for breach of contract claims in Scotland, from 9 November 2026)

From 30 October 2026

  • Employers must take "all reasonable steps" to prevent sexual harassment of their employees — up from "reasonable steps".
  • Employers must not permit the harassment of their employees by third parties, such as customers and clients.
  • The government can later make regulations specifying steps employers must take.
  • Trade union measures take effect, including stronger rights of access and new protections for union representatives.

Tipping law is to be strengthened by the end of 2026.

From January 2027

  • The qualifying period for unfair dismissal falls to six months, for dismissals from 1 January 2027, and the cap on the compensatory award is removed.
  • Fire and rehire protections take effect.
  • Employers must inform workers of their right to join a trade union.

Later in 2027 the government plans further measures, including enhanced dismissal protection for pregnant women and new mothers, bereavement leave including pregnancy loss, changes to flexible working, regulation of umbrella companies, and rights to guaranteed hours and reasonable notice of shifts (with timings to be confirmed after consultation).

What UK employers should do now

  • Carry out and document a sexual harassment risk assessment, including risks from customers and other third parties
  • Update the harassment policy, train managers and staff, and set up a clear reporting route before 30 October 2026
  • Review probation periods and performance processes ahead of six-month unfair dismissal protection in January 2027
  • Check that sick pay and family leave policies reflect the April 2026 changes
  • Diarise the six-month tribunal time limit when handling disputes
  • Review any plans to change terms and conditions in light of the fire and rehire rules

Our HR consulting practice drafts UK employment contracts and policies and reviews HR processes for groups with UK staff, working with UK-qualified lawyers where formal legal advice or representation is needed. For Pakistani employment law, see our HR compliance checklist for Pakistan. Book a consultation.

Official sources

Frequently asked questions

When does the UK unfair dismissal qualifying period change?

For dismissals from 1 January 2027, employees qualify for unfair dismissal protection after six months' service instead of two years, and the cap on the compensatory award is removed.

What is the new UK duty to prevent sexual harassment?

From 30 October 2026 employers must take all reasonable steps to prevent sexual harassment of their employees, and must not permit harassment of their employees by third parties such as customers.

Veridian Partners — Knowledge BankWritten by the founding team of Veridian Partners as part of our technical publication programme. Questions about this guide? Contact us.

This guide is general information based on the law as we understand it on the date shown, not advice for your situation. Tax rules change often — please speak to us before acting on it. See our disclaimer.

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