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Employment law changes 2026: what employers must prepare for

The Employment Rights Act 2025 is rolling out in stages, and the next set of employment law changes takes effect on 1 October 2026, with dismissal reforms following in January 2027. This guide from Wolf Law's employment law team explains what has already changed this year, what is coming next, and the practical steps your business can take now to stay compliant. From doubled tribunal claim windows to new harassment prevention duties and uncapped dismissal awards, here is what every employer needs to know before the deadlines arrive.

Key takeaways

The change What it means for you
Tribunal claim windows double on 1 October 2026 The time limit for most Employment Tribunal claims rises from three months to six months, so you must keep your records and evidence in order for longer.
Harassment duties tighten on 30 October 2026 Employers must take all reasonable steps to prevent sexual harassment at work, including harassment of staff by third parties such as customers.
Dismissal claims change in January 2027 The unfair dismissal qualifying period drops to six months for dismissals from 1 January 2027, and compensatory awards become uncapped.
Sick pay and family leave already changed Since 6 April 2026, statutory sick pay is payable from the first day of illness and paternity leave is a day-one right.
Fire and rehire protections arrive in 2027 Dismissing staff and rehiring them on worse terms will carry serious legal risk once the new protections take effect.
Preparation costs less than claims A free initial consultation with an employment solicitor helps you plan ahead and avoid tribunal disputes.

The government’s implementation timeline sets out the biggest shake-up of workplace law in a generation. The Employment Rights Act 2025 is arriving in stages, and the next deadlines fall in October 2026 and January 2027. If you employ people, you need to know what is coming and when.

At Wolf Law’s employment law team, we help employers get ahead of these changes rather than react to them. This guide walks you through the employment law changes already in force, the deadlines around the corner, and the practical steps you can take now.

What has already changed in 2026

Several major employment law changes took effect on 6 April 2026. Statutory sick pay no longer has a waiting period or a lower earnings limit, so more workers receive payment from the first day of illness. Paternity leave and unpaid parental leave are now day-one rights, meaning staff can use them from the start of their employment rather than after a qualifying period.

Whistleblowers who expose sexual harassment at work gained stronger protections. The maximum protective award for failing to consult properly on collective redundancies doubled, which raises the cost of cutting corners during restructures. Bereaved fathers and partners can now take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child’s life.

Sick pay and family leave from day one

The day-one sick pay change matters for your payroll and contracts. Review your sick pay policies so they reflect the new rules, and make sure line managers know that staff can claim from the first day of illness. The Employment Rights Act 2025 also created the Fair Work Agency, which began operating on 7 April 2026 and now enforces workplace rights across the country.

The October 2026 employment law changes

Two deadlines land in October 2026. On 1 October, the time limit for bringing most Employment Tribunal claims increases from three months to six months. For breach of employment contract claims in Scotland, the change takes place on 9 November 2026.

Longer tribunal claim windows

The longer window means former employees have more time to bring claims against you. Keep recruitment records, appraisal notes, disciplinary files and dismissal paperwork for at least six months after any employment relationship ends. Good record keeping now forms the backbone of any successful tribunal defence, as Citizens Advice guidance on workplace rights makes clear.

New harassment prevention duties

On 30 October 2026, employers must take all reasonable steps to prevent sexual harassment of their employees. The duty extends to harassment of staff by third parties, such as customers, clients and suppliers. Trade union measures also take effect on the same date, including a duty to inform workers of their right to join a union. Practical preparation includes staff training, clear reporting routes and a documented harassment policy that covers third-party behaviour.

January 2027: dismissal claims change

The biggest shift for most employers arrives in January 2027. The unfair dismissal qualifying period falls to six months for dismissals from 1 January 2027, and compensatory awards become uncapped. This combination means more staff can claim, and successful claims can cost far more.

Uncapped awards raise the stakes

Fire and rehire protections also take effect in 2027, restricting the practice of dismissing staff and re-engaging them on worse terms. Later in 2027, expect further measures on non-disclosure agreements, guaranteed hours and flexible working. The government has published detailed guidance for employers alongside the timeline, and we track each stage as it lands.

Every dismissal decision you make after the January 2027 deadline needs a fair process behind it. That means documented warnings, genuine consultation and a clear paper trail from the first conversation to the final decision.

How employers can prepare now

Start with a contract and policy review. Check that your contracts, staff handbooks and settlement templates reflect the new rules, and update anything that relies on the old qualifying periods. Train your managers on the harassment duties before October, and audit your record keeping before the tribunal window extends.

Small and mid-sized businesses can spread the work over the autumn rather than facing everything at once. Prioritise the October deadlines first, then move on to dismissal processes ahead of January 2027. If you employ people on zero hours contracts, review how guaranteed hours rules will apply when they arrive later in 2027.

You do not have to work through this alone. Wolf Law offers a free initial consultation for employers who want to understand their duties before the deadlines arrive. Our employment law specialists review your current position and set out the steps you need. You can get in touch through our contact page, and our commercial team can also review your wider business arrangements. Early advice costs far less than a tribunal claim, as our regular employment law updates explain.

Frequently asked questions

When do the main employment law changes take effect?

Key dates include 1 October 2026 for longer tribunal claim windows, 30 October 2026 for the new harassment prevention duties, and January 2027 for the shorter unfair dismissal qualifying period and uncapped awards. Several family leave and sick pay changes already took effect on 6 April 2026.

Do these changes apply to small businesses?

Yes. The changes apply to employers of all sizes. Small businesses often feel the impact most because they have less HR support, which is why early preparation and a free initial consultation can save money later.

What happens if my business misses the new harassment duties?

Failure to take all reasonable steps can lead to tribunal claims, financial penalties and reputational damage. Employment tribunals can also uplift compensation where an employer ignored its prevention duties, so training and clear policies matter.

How does the six-month tribunal window affect my record keeping?

You should keep all employment records, including appraisals, disciplinary notes and dismissal paperwork, for at least six months after a member of staff leaves. Strong records make the difference between a strong defence and an expensive settlement.

Will the new unfair dismissal rules affect existing staff?

The six-month qualifying period applies to dismissals from 1 January 2027. Staff already in post will reach the threshold sooner than under the old two-year rule, so every dismissal process from that date needs to be fair and documented.

How can I check whether my contracts are ready for 2027?

A contract review by an employment solicitor is the fastest way to find gaps. Wolf Law offers a free initial consultation, and we will tell you plainly what needs updating before the January 2027 changes arrive.

Legal disclaimer

This article is for general information only and does not constitute legal advice. Employment law changes frequently, and your circumstances may affect how the rules apply to you. For advice on your specific situation, contact Wolf Law for a free initial consultation with a qualified employment solicitor.

author avatar
Jayson Sloss
Employment Law Specialist

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