October 2026 legal changes: What SMEs need to do now
October 2026 will bring more significant employment law changes under the specific Employment Rights Act 2025 changes. These changes are to extend tribunal time limits, strengthen duties around preventing sexual harassment, introduce liability for third-party harassment, and expand trade union rights. Businesses that delay preparation could face increased legal, financial and reputational risks.
Longer Tribunal Time Limits
From 1 October 2026, the limitation period for most Employment Tribunal claims (including unfair dismissal and discrimination) is expected to increase from three months to six months.
This effectively doubles the period during which employees can pursue claims. Employers may therefore find themselves defending cases relating to events that occurred much further in the past.
Key actions:
- Review document retention arrangements and keep employment records for longer
- Ensure investigations are well documented and capable of standing up to scrutiny months after the event
- Train managers to create clear, contemporaneous notes of meetings, complaints and performance discussions
Failing to strengthen record-keeping now may make it much harder to defend future claims.
Sexual harassment prevention requirements
From 30 October 2026, employers will be required to take “all reasonable steps” to prevent sexual harassment, a significantly higher standard than the current duty. Employers that cannot show proactive prevention measures may face tribunal compensation uplifts and regulatory scrutiny.
Key actions:
- Refresh workplace risk assessments
- Move beyond generic e-learning and ensure training is regular and up to date
- Review reporting channels, making sure options are available and clear
- Demonstrate visible leadership commitment to prevention
Policies alone are unlikely to be sufficient to demonstrate compliance with the ‘all reasonable steps’ duty.
Manage the new third-party harassment risk
From 30th October, employers will become liable for harassment of employees by customers, clients, contractors and suppliers. Importantly, employers cannot rely on the fact that there have been no previous incidents. Liability may arise following a single incident of harassment where the employer cannot demonstrate that reasonable preventative measures were already in place.
Key actions:
- Update policies to cover third-party harassment
- Introduce clear reporting and escalation procedures
- Review supplier and contractor agreements to communicate behaviour requirements
- Implement training for customer-facing employees on dealing with inappropriate behaviour
Trade Union rights
From 30th October, employers will be required to provide workers with a statement informing them of their right to join a trade union. The specifics of what the statement should include are due to be confirmed.
In addition, Trade Unions will have enhanced workplace access rights (in person or digitally), trade union recognition and derecognition procedures are being reformed. Union equality representatives will also be entitled to reasonable paid time off to carry out duties and representatives will have reasonable access to facilities to carry out their duties.
Key actions:
- Update onboarding documentation when details of right to join statement are confirmed
- Identify who will manage trade union communications and access requests
- Review employee engagement mechanisms before union activity increases
Don’t wait until October
The employers best placed to respond to these reforms will be those that treat the coming weeks as a preparation period rather than a countdown. Stronger governance, better record-keeping, updated policies and targeted training will not only reduce legal risk but also help create a more resilient and compliant workplace ahead of the wider employment law reforms expected throughout 2027.
If you would like support preparing for these changes, get in touch.