The Employment Rights Act 2025 has already introduced several important changes for employers, but another significant stage of reform is approaching.

With further changes taking effect from October 2026, followed by the reduction in the qualifying period for ordinary unfair dismissal from two years to six months from 1 January 2027, now is the time for employers to make sure their HR processes, policies and managers are ready.

Our Head of HR Services, Kathryn Gilbert, recently spoke to Better Retailing about what the next phase of the Employment Rights Act means for employers, particularly smaller businesses where HR responsibilities often sit alongside the day-to-day demands of running an organisation. You can read Kathryn’s comments in the original Better Retailing article here.

What Employment Rights Act changes are coming next?

Employers have already had to adapt to changes introduced earlier in 2026, including reforms to Statutory Sick Pay and family-related leave.

However, there is more to prepare for.

Some of the key areas employers should now have on their radar include:

• Changes affecting Employment Tribunal claims
• Stronger requirements around preventing sexual harassment at work
• New rules affecting trade unions and workplace access
• Restrictions around fire and rehire practices
• The reduction in the qualifying period for ordinary unfair dismissal to six months from 1 January 2027

These reforms make good HR processes and accurate record keeping increasingly important.

Good record keeping will matter more than ever

As Kathryn highlighted when speaking to Better Retailing, employers need to make sure they can evidence the decisions they make.

This includes keeping appropriate records such as:

• Employment contracts.
• Notes from meetings.
• Performance and capability records.
• Absence records.
• Rotas and working arrangements.
• Records of conversations and actions taken by managers.

Good documentation is not simply an administrative exercise. If a workplace dispute develops, being able to demonstrate what happened, when it happened and why a particular decision was made can be extremely important.

Managers should therefore understand not only the processes they are expected to follow, but also what should be documented along the way.

Sexual harassment: consider risks involving third parties

Preventing sexual harassment should also be high on employers’ agendas.

From 30 October 2026, the preventative duty on employers will be strengthened, requiring employers to take all reasonable steps to prevent sexual harassment. Employers will also need to consider harassment involving third parties, such as customers, clients, contractors and visitors.

This is particularly important for organisations where employees regularly interact with members of the public.

Employers should consider carrying out a sexual harassment risk assessment and identifying situations where employees could be particularly vulnerable.

Depending on the workplace, risks might include lone working, late-night working, dealing with intoxicated customers or clients, attending events, travelling for work or working closely with members of the public.

Policies should also make it clear how employees can report concerns, how the organisation will respond and what action may be taken where inappropriate behaviour involves a third party. Find out more here. 

Six-month unfair dismissal protection: review probation now

One of the biggest changes approaching employers is the reduction in the qualifying period for ordinary unfair dismissal.

From 1 January 2027, employees are expected to gain ordinary unfair dismissal protection after six months’ service, rather than the current two-year qualifying period.

This makes effective probation and performance management particularly important.

Employers should review their current probation arrangements and ask:

• Are expectations made clear from the beginning of employment?
• Are probation meetings actually taking place?
• Are performance concerns raised promptly?
• Are managers keeping appropriate records?
• Are employees given clear feedback and opportunities to improve?
• Are decisions being made before probation periods simply roll over?

Waiting until the end of a six-month probation period before addressing concerns could leave employers with very little time to properly manage performance and make decisions.

For some organisations, it may therefore be sensible to consider whether shorter probation periods, with regular review points, would provide a more effective framework.

The important point is not simply the length of the probation period. It is making sure probation is actively managed. Find out more here. 

Don’t wait until January to review your workforce processes

The January 2027 change may feel some way off, but employers should not wait until the new qualifying period takes effect before acting.

Reviewing recruitment, onboarding, probation and performance management processes now gives organisations time to identify weaknesses and make improvements.

It also gives managers time to become comfortable having performance conversations, setting expectations and documenting concerns appropriately.

Employers should avoid seeing the change as a reason to rush through dismissals before January. Decisions should continue to be made fairly, carefully and with appropriate advice, particularly because employees may have other legal protections regardless of their length of service. 

What should employers do now?

The next few months provide an opportunity to check that your organisation is prepared.

Consider reviewing:

• Probation and performance management processes.
• Employment contracts and HR policies.
• Sexual harassment policies and risk assessments.
• Manager training.
• Record-keeping procedures.
• Trade union arrangements and manager awareness.
• Current workplace issues that have been allowed to drift.

For smaller organisations in particular, getting these foundations right can make managing the Employment Rights Act changes considerably easier.

Preparing Your Workplace for What’s Next

We know employers have been hearing about the Employment Rights Act for a long time. Some reforms are already in force, others are arriving shortly, and further changes will continue into 2027.

Our Employment Rights Act 2025 – Preparing Your Workplace for What’s Next training programme has been designed to move beyond simply explaining what the law says and help organisations prepare for the practical impact.

Our specialist workshops cover:

• Working with Trade Unions – Is Your Workplace Ready for the New Rights?
• Probationary Periods and Unfair Dismissal – Getting Ready for the Six-Month Rule
• Preventing Sexual Harassment – Are You Taking All Reasonable Steps?

Find out more about the training programme here.

How Bhayani Law can help

Preparing for the Employment Rights Act is not just about changing policies when new legislation comes into force. Employers also need to make sure their managers understand those policies and that the right processes are being followed in practice.

Our combined HR and employment law team can help you review your existing arrangements, identify areas of risk and put practical measures in place before the next changes take effect. Find out more about our ERA Audit & Impact Assessment.

Whether you need support reviewing probation procedures, training managers, updating documentation, carrying out a sexual harassment risk assessment or understanding how the Employment Rights Act affects your organisation, we can help.

Don’t wait until a problem arises to find out that your processes aren’t ready.

Speak to Bhayani Law about preparing your workplace for the next phase of the Employment Rights Act 2025. Call 0333 888 1360 or email [email protected].