Employment Rights Act – Actions to Take Oct26

Below we have put together some actions below that we think all businesses should review and plan for immediately no matter how large or small.

Tribunal Claim Time Limits to be Extended

It is looking increasingly likely that the claim limit for employees to be able to submit a Tribunal Claim will be extended from three to six months. In addition, the ACAS Conciliation Process time limit is also proposed to be extended from 6 weeks to 12 weeks. This means that employers will need to hold onto data for longer and document incidents such as Grievances, Capabilities and Disciplinaries more rigidly.

• Make sure you have systems in place that can store and file all employment documents effectively and efficiently.

• Review your Data Retention Policy to ensure that you do not discard documentation that could be called upon in a Tribunal Claim.

• Train up your Managers in how to deal with the core employee incident processes so that they record the right information.

• Review any prior cases and think about witness statements or any other information that you may need to gather in advance of any Tribunal Claim.

Sexual Harassment – All Reasonable Steps

Employers are currently required to take “Reasonable Steps” under the Worker Protection (Amendment of Equality Act 2010) Act 2023 to prevent sexual harassment within the workplace. From October 2026, employers are going to need to take “All Reasonable Steps”. This small change has a substantial impact on your organisation’s responsibilities in this area.

• We would advise all businesses to conduct a Risk Assessment, a copy of which can be downloaded at (https://www.hrsmartuk.com/hr-smart-resources/risk-assessment-form-sexual-harassment/). This will guide you as to which areas you need to concentrate on.

• Review your policies and procedures on sexual harassment and update or amend as necessary depending on the Risk Assessment outcome.

• Ensure that all managers, staff and subcontractors are trained on how to spot and deal with sexual harassment in the workplace. This training should be documented and carried out on an annual basis.

• Monitor the workplace to ensure that there are no instances of sexual harassment taking place either between employees/contractors or by third parties i.e. clients, suppliers and associates.

Protection From Harassment  – From October 2026

In addition to the Sexual Harassment changes, the law is also being strengthened around general harassment by third parties. This change to the law covers all three harassment types covers under section 26 of the Equality Act 2010.

• Review policies and procedures to ensure that third party bullying, harassment and sexual harassment are covered and that managers and employees are aware of the complaints procedure.

• Conduct training for all employees concerning third party harassment on an annual basis. You should record that this training has taken place and who has received it.

• Review terms and conditions of working with and for suppliers, associates and clients. These may need to be changed to include third party harassment.

• Risk Assess all areas of the business to ensure that harassment cannot take place and if it does, and there are signage, CCTV or other mechanisms to allow the Organisation to take action against the perpetrator(s) and protect employees and contractors adequately.

New Tipping Code of Practice (Draft) – Expected October 2026

Back in 2025, a new Tipping Code was introduced via the Employment Rights Act. There is now expected to be a new dedicated code of practice, Code of Practice on the Fair and Transparent Distribution of Tips. Employers will be expected to make their tipping calculations and policy complete transparent to all employees. There will need to be a dedicated policy in place and employees will be able to take a Tribunal Claim against the employer for unfair tipping practices.

• If your organisation collects and distributes tips or service charges, then ensure that you have a fully compliant policy in place available to all employees.

• Make sure that this policy is reviewed every three years as a minimum.

• Complete manager training on the tipping policy and process and ensure that everyone understands how to deal with tips and service charges lawfully.

TUPE (Transfer of Undertakings Protection of Employees)

The Government has agreed that it plans to re-instate two-tier workforce terms and conditions for the private sector from October 2026. The details are currently undergoing consultation, but this is expected to conclude in July. This means that if commercial contracts are transferring under the rules of TUPE from Public to Private Sector, it will be possible to have different terms of employment in force on the same contract.

• Check any current tenders for public sector contracts to ensure that you fully understand any cost implications of the transferring employees’ terms and conditions of employment.

• Conduct an audit of any existing contracts to see what terms and conditions are currently in force.

• Ensure that contract and tender managers are aware of this change for new tenders.

• Review policies and procedures in this area to ensure that they reflect the upcoming changes.

Reduction in Length of Service Required to Claim Unfair Dismissal

In January 2027, the Government are reducing the 2 year Unfair Dismissal qualifying period to six months. This will take effect on the 1^st January 2027 and will incorporate new hires from 1^st July 2026.

• Ensure that you review all of your workforce probation periods to ensure that anyone who is not capable of completing their work to a satisfactory standard are managed appropriately before 31^st December 2026.

• Review all recruitment processes to ensure that your new hires are of sufficient quality to satisfy your Organisation’s requirements.

• Train all hiring managers to understand any changes that you need to make to recruitment processes.

Summary

HR Smart has been advising its clients to make themselves aware of the above areas over the last 12 months. We hope that you have this under control and have assessed the major areas of your business likely to be impacted by the Employment Rights Act.

However, if it is still on your list of things to do, we would urge you to take action now to avoid becoming non-compliant with the new proposed laws.

As always, should you need any help or advice, please email Jon at jon@hrsmartuk.com or call 01903 754107 if you think you need any specialist advice on this subject.