26 Oct 2026
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Employment law is changing, and employers need to look beyond updating their staff handbook. How you manage probation, respond to complaints and support employees facing harassment will all come under closer scrutiny.
The Employment Rights Act 2025 introduces a programme of reforms affecting businesses of all sizes. With changes being introduced in stages, the priority is to understand what has already changed, what comes next and where your existing processes need attention.
From 1 January 2027, the qualifying period for ordinary unfair dismissal protection is scheduled to fall from two years to six months. The cap on compensatory awards is also due to be removed. Compensation will still depend on the losses established in the individual case; removing the cap does not create an automatic entitlement to a large award.
This change will affect existing employees as well as new recruits. Someone whose continuous employment began on or before 1 July 2026, and who remains employed on 1 January 2027, will already have reached the new qualifying period when the change takes effect.
For employers, this makes effective probation management particularly important. Set clear expectations, hold regular reviews, raise concerns promptly and record the support offered and the employee’s response.
Consider whether a standard six-month probationary period still works for your business. A shorter period of three to five months could help ensure reviews take place and concerns are addressed well before employees reach six months’ service, allowing time for a fair process and any applicable notice period. Leaving everything until the final probation meeting will make it harder to demonstrate how a decision was reached.
A probation clause does not override statutory rights. Discrimination claims and many automatically unfair dismissal claims already require no minimum length of service.
Review your contracts and procedures too. If a performance or disciplinary procedure is contractual, failing to follow it may create a separate contractual issue. Seek advice before making a dismissal decision where service dates, notice periods or protected rights may affect the position.
From 30 October 2026, the duty to prevent sexual harassment will increase from taking “reasonable steps” to taking “all reasonable steps”. Employers will also face liability for harassment by third parties, such as customers, clients and contractors, unless they have taken all reasonable steps to prevent it. This extends beyond sexual harassment.
The practical question is whether there were further reasonable measures your business could have taken.
Start by assessing the risks in your workplace. Consider customer contact, lone working, late shifts, work events and situations where there is an imbalance of power. Then put appropriate measures in place:
These measures should reflect the risks your employees actually face. A policy nobody reads or training that is never refreshed will provide limited reassurance. Employees should also know how to obtain support when a customer or client behaves inappropriately.
Several reforms took effect in April 2026, so employers should check that their payroll arrangements and policies already reflect them.
Statutory Sick Pay: since 6 April, the waiting period and lower earnings limit have been removed. Eligible employees can receive SSP from their first qualifying day of sickness, regardless of earnings. Other eligibility conditions still apply.
Family leave: paternity leave and unpaid parental leave became day-one rights on 6 April. The right to paternity leave should be distinguished from statutory paternity pay, which has separate eligibility requirements.
Collective redundancy: the maximum protective award for failing to meet collective consultation obligations doubled to 180 days’ pay.
Whistleblowing: sexual harassment became an express category of wrongdoing that can form the basis of a protected disclosure, provided the legal conditions are met.
The Fair Work Agency, established on 7 April, brings together enforcement functions within a broader framework for enforcing employment rights. Employers should keep accurate records and monitor guidance as its responsibilities develop.
From 1 October 2026, time limits for most employment tribunal claims increased from three to six months. Transitional rules mean the shorter limit may still apply to earlier events. This reinforces the need to preserve relevant documents and seek advice promptly when a dispute arises.
With Statutory Sick Pay now payable from the first qualifying day of sickness, employers should review how they record and manage absence.
Monitor both the total days lost and the frequency of individual absences. Repeated one-day absences can present different challenges from a single extended period of illness. Record dates, duration and reported reasons, and look for patterns, such as absences regularly falling on Mondays, Fridays or alongside annual leave. A pattern should prompt a conversation, rather than an assumption that sickness is not genuine.
Regular return-to-work meetings provide an opportunity to discuss concerns, understand any underlying health or workplace issues and identify support. Where short-term absences recur, follow your absence management procedure, explain the concerns, agree appropriate next steps and set a review date.
Any absence review points should trigger an individual assessment, rather than automatic disciplinary action. Consider disability-related adjustments and the protections applying to pregnancy-related absence, and obtain medical or occupational health advice where appropriate.
Repeated absence can also increase colleagues’ workloads, disrupt client service and place pressure on team wellbeing. These effects make timely management important. Supporting the employee who is absent and addressing the impact on the wider team should both form part of a fair, consistent approach.
Stronger restrictions on fire and rehire are scheduled for January 2027. Dismissals connected with certain changes to contractual terms will generally be automatically unfair, subject to a narrow exception involving serious financial difficulties and unavoidable changes. Businesses considering changes to pay, hours or other contractual terms should obtain advice early and explore consultation and agreement.
Further measures expected during 2027 include:
Details and implementation dates remain subject to regulations and parliamentary processes.
Union access reforms are scheduled for 30 October 2026, while the duty to inform workers of their right to join a trade union is scheduled for January 2027.
The growing use of AI to prepare grievances and responses presents another practical challenge for employers.
A complaint may be lengthy, repetitive or contain legal references that do not fit the circumstances. That does not mean the underlying concern should be dismissed.
Meet the employee early to clarify what happened, when it happened, who was involved and what outcome they are seeking. Confirm your understanding in writing and give them an opportunity to identify anything missing.
Respond proportionately to the material issues. Keep clear records of the evidence considered, your findings and the reasons for your decision. Apply the same care to an employer response prepared using AI: polished wording is no substitute for accurate facts and sound judgment.
Employees should have a fair opportunity to appeal. Consider their grounds and whether further investigation is needed, rather than assuming an appeal can be rejected because it repeats earlier concerns.
The most useful preparation is to strengthen the processes managers use every day: regular probation reviews, clear records, consistent absence management, effective harassment prevention and fair handling of complaints.
Review these arrangements now, identify gaps and make sure managers understand what is expected of them. Taking advice before a difficult decision can help resolve concerns earlier and reduce the risk of a dispute.
Hegarty can help you review employment contracts and policies, prepare for the changes and manage workplace issues. Contact our employment team for practical advice tailored to your business.
Information correct as at 19 October 2026. Future implementation dates and details may change.
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