Employment Rights Act 2025 – October changes 

The next tranche of the Employment Rights Act 2025 comes into effect in October. Here’s what Employment lawyer, Alexandra Hubbard, of Thackray Williams, explains what it means for SMEs and their staff – and what you need to do to remain compliant.  

ERA: what’s been implemented so far   

Various stages of the Employment Rights Act 2025 (ERA) have been coming into effect since the beginning of this year. Here’s what has already been implemented:  

• Changes to industrial action rules (February 2026): Requirements affecting trade union activity, industrial action and picketing were simplified.  

• Day one right to Paternity Leave (April 2026): Eligible employees gained the right to access paternity leave from the first day of employment, removing the previous qualifying period.  

• Day one right to Unpaid Parental Leave (April 2026): Employees became entitled to unpaid parental leave from the start of their employment.  

• Statutory Sick Pay waiting days removed (April 2026): Employees no longer have to wait three days before becoming eligible for SSP.  

• Whistleblowing protections (April 2026): Strengthened and clarified for those who ‘blow the whistle’ on sexual harassment.    

• Lower Earnings Limit removed for SSP (April 2026): Employees earning below the previous earnings threshold became entitled to sick pay, broadening eligibility significantly.  

• Increased redundancy consultation penalties (April 2026): The maximum penalty for failure to comply with collective redundancy consultation requirements increased from 90 to 180 days’ gross pay per employee.  

• Union recognition process simplified (April 2026): Changes were introduced to make official trade union recognition applications easier. 

You can read more about these changes in the article we published in February.  

Key changes being introduced by the ERA in October 2026  

October 2026 marks the next significant phase of implementation, with several measures of particular relevance for SME employers.  

Perhaps the most significant practical change is the extension of Employment Tribunal time limits. Currently, most claims must be brought within three months. From next month, that period will double to six months. When combined with the mandatory ACAS early conciliation process, which effectively pauses the clock from the time that ACAS receives the Early Conciliation notification to the time that the Early Conciliation certificate is issued (and other protections that benefit employees with short deadlines following the end of early conciliation), this will result in extended time frames for claimants to begin proceedings.

For SME owners, this means employment records, investigation notes, meeting minutes and disciplinary documentation may need to be retained and accessed for longer periods. It also means employment disputes could emerge months after an employee has left the business.  

October also brings strengthened protections against workplace sexual harassment. Employers will face increased obligations to take ‘all reasonable steps’ to prevent sexual harassment, including harassment by third parties such as customers, suppliers and clients.

Employers will need to demonstrate that they have thought about workplace risks, implemented appropriate policies and procedures, and provided staff with the information and support required to maintain a safe working environment.  

While these October changes may not generate the same headlines as upcoming unfair dismissal reforms, they have the potential to affect the day-to-day running of businesses. Taking action now will help business owners minimise risk and avoid unexpected compliance issues later. 

Future ERA changes to look out for  

The October 2026 changes are not the end of the Employment Rights Act rollout. Several significant reforms remain on the horizon.  

From 2027, employees are expected to gain a day one right to unpaid bereavement leave. Greater protection against dismissal is also expected for pregnant employees and new mothers, potentially extending for up to six months after a return from maternity leave.

Another major development will be enhanced protections for workers on zero-hours and low-hours contracts, including many workers in hospitality, care and platform-based roles. The Government also plans to reinforce flexible working rights. These changes could have staffing, scheduling and workforce planning implications for SMEs that rely on flexible labour models.

Confirmed as of now to take effect in January 2027, employers should also keep an eye on the proposed reduction of the qualifying period for unfair dismissal claims from two years to six months, alongside the planned removal of the current compensation cap for unfair dismissal awards. Both proposals could have significant implications for recruitment, probation management and employment disputes.

What employers need to do now to remain compliant with the ERA  

With employment law changing in stages rather than all at once, SMEs should avoid treating compliance as a one-off exercise. Instead, now is the time to review employment practices and ensure they remain fit for purpose.  

Start by reviewing employee handbooks, policies and procedures to ensure they reflect the rights already introduced this year and the additional responsibilities arriving in October. Particular attention should be paid to sickness absence procedures, family leave policies and anti-harassment measures.  

Managers should also understand the longer tribunal time limits and the importance of maintaining accurate records. Good documentation has always been valuable; with claims potentially emerging later than before, it will become even more important.  

Finally, employers should begin thinking ahead to the changes expected in 2027. Businesses that regularly recruit staff, use flexible workers or manage large teams may benefit from seeking professional HR or legal advice now, giving them time to plan before the next substantial wave of reforms arrives.  

Businesses that prepare early for the upcoming employment law changes will be best placed to remain compliant, minimise risk and build positive workplace cultures. 

If you’re looking for office space from a provider that provides free expert advice to help you succeed, get in touch. 

 

MEET THE EXPERT  

[Alexandra pic] 

Alexandra Hubbard is a solicitor in the employment team of leading South East law firm, Thackray Williams. Dual qualified to practice in England & Wales and Nebraska, USA, she previously spent six years representing both individuals and businesses in a varied practise in the Midwest.