Early Changes
Employment Tribunal Limits
From 1 October, the time limit for bringing a claim in the employment tribunal will be increased from three to six months.
The six-month limit is intended to extend the time available for employers and employees to resolve disputes, but it will inevitably create more uncertainty for employers, who may not know whether a claim is being pursued until 6 – 12 months after the act that led to the claim.
There is also a concern that the extension of time to bring a claim coupled with the existing backlog in the employment tribunal may result in claims being heard a long time after events have taken place, increasing the risk of faded memories, witnesses leaving the business and evidence being lost. Employers should consider taking steps to prepare for potential claims by collecting key evidence at the relevant time (for example, when dismissing an employee or taking disciplinary action) rather waiting until proceedings are brought.
Changes from 30 October
There are several changes coming later in the month. These include changes to the law on sexual harassment in the workplace and changes to employers' duties in relation to trade unions.
Harassment
From 30 October, employers must take 'all reasonable steps' to prevent the sexual harassment of their workers from other employees and third parties. Under existing legislation, employers must just take 'reasonable steps' to prevent this.
Employers should, if they have not already, carry out a sexual harassment risk assessment for the workplace and consider any steps that can be taken to lower this risk.
The ERA 2025 gave the government the power to make regulations specifying what 'reasonable steps' are expected of employers. Rather unhelpfully, these are not expected to come into force until 2027/2028 despite the obligation to take all reasonable steps being effective from October 2026. It is expected that the regulations will specify steps such as recording incidents and actions taken/not taken; training workers; ensuring that a sexual harassment policy is in place and followed where they are issues; providing employees with appropriate safety equipment; and ensuring employees know how to raise concerns.
Trade Union Changes
Also from 30 October, employers will have a duty to inform workers of their right to join a trade union. There will also be changes to trade unions rights which includes a general right to access workplaces, both physically and digitally, to recruit, organise and represent members. Employers who breach access rights could risk a penalty issued by the Central Arbitration Committee of up to £500,000.
The ERA 2025 also introduces rights to reasonable accommodation, facilities and time off for trade union representatives when carrying out their duties or undergoing training, as well as an updated Code of Practice on trade union recognition.
In preparation, employers could also consider appointing someone to deal with access requests; consider terms that the organisation will/will not agree on and review their current internal communications strategies and procedures for visitors attending workplaces.
Industrial Action Protections
New protections will be introduced to make it unlawful for employers to subject workers to detriment where the sole or main purpose of this is to deter workers from taking part in industrial action or penalise them for doing so.
'Detriment' could include disciplinary action, changes to promotion opportunities and any other treatment which puts an employee at a disadvantage due to their participation in industrial action. This change is intended to close a loophole in the legislation that meant employees could not bring a claim where they were subject to detriment short of dismissal.
Whilst industrial action within SMEs is currently uncommon, it is likely that the unions will have considerably more power under the Labour government with these new rights being introduced. It is possible that there will be an increase in industrial action and employers should be mindful of the additional protections for those taking part.
Negotiating Body for Adult Social Care
Lastly, regulations are expected to be introduced in October to set up a negotiating body representing social care workers in England. This will be formed from trade unions and employers and will negotiate on pay, terms and conditions and other matters such as training and career progression for social care workers in England. Once agreements are reached on terms, they will become legally enforceable through workers’ contracts.
This is the first step of the process, and it is expected that the first round of negotiations will take place in April 2027 and the first fair pay agreement will come into force in April 2028.
In short, the many upcoming changes are likely to require a thorough review of existing policies, contracts and working practices. Please contact us to discuss these changes further and what they may mean for your organisation.
For any queries regarding these topics and any other employment matters, please contact our Employment team.