Employment Rights Act Reforms Introduce New Employer Obligations
New Legislation Enacted
Author: Emily Bodger, Knowledge Lawyer
The next phase of reforms under the Employment Rights Act 2025 will take effect in October 2026. Key changes include longer time limits for bringing Employment Tribunal claims from 1 October 2026, enhanced employer obligations to prevent sexual harassment, and potential liability for third-party harassment from 30 October 2026. Employers must also prepare for significant trade union reforms taking effect on 30 October, including new workplace access rights for trade unions.
The UK Government has also published further consultation responses clarifying planned reforms under the Act. These include proposals relating to trade union rights, flexible working requests, and a new entitlement to unpaid bereavement leave. While the requirement for employers to inform employees of their right to join a trade union appears to have been postponed until January 2027, additional major reforms, including changes to unfair dismissal and fire-and-rehire practices, are expected to take effect during 2027.
Right-to-Work Compliance Obligations Expanded
New Legislation Enacted
Author: Ben Maitland (Consultant)
Effective 1 October 2026, Section 48 of the Border Security, Asylum and Immigration Act 2025 expanded the definition of “employment” for purposes of illegal working liability. The changes extend right-to-work compliance obligations beyond traditional employment relationships to include certain worker contracts, subcontracting arrangements, and online matching services that connect service providers with clients.
The new rules apply to relevant contractual arrangements entered into on or after 1 October 2026. To reduce exposure to civil penalties, businesses that use subcontractors, permit substitution arrangements, or operate online matching services must incorporate prescribed right-to-work compliance measures into their contracts. These include obligations to conduct right-to-work checks, restrictions on further subcontracting without consent, audit rights, cooperation with Home Office investigations, and, verification procedures confirming that the individual performing the work is the same individual whose right to work was verified.
The reforms significantly broaden the scope of right-to-work compliance and require coordination beyond HR functions, including among legal, procurement, vendor-management, and operational teams responsible for managing contractors and service providers.
Acas Consults on Revised Code for Disciplinary and Grievance Procedures
Proposed Bill or Initiative
Author: Emily Bodger, Knowledge Lawyer
The Advisory, Conciliation and Arbitration Service (‘Acas‘) concluded a public consultation on 23 September 2026, on a substantially revised Code of Practice on disciplinary and grievance procedures. The draft Code places greater emphasis on early and informal resolution of workplace concerns and expands guidance on issues such as mediation, reasonable adjustments, suspension, grievance handling, and manager training.
The proposed Code would also extend its scope to workers, rather than employees alone, and encourage employers and workers to address concerns at an earlier stage before formal procedures become necessary. The revisions could become particularly significant from January 2027, when the removal of the unfair dismissal compensation cap is expected to increase the potential impact of the existing 25% tribunal uplift for unreasonable noncompliance with the Code.
Government Consults on the Use of Workplace Monitoring Technologies
Proposed Bill or Initiative
Author: Hannah Drury, Associate
On 8 July 2026, the UK Government launched a consultation on the use of workplace monitoring technologies (‘WMT‘), seeking views on current workplace practices, decision-making processes, and whether additional regulation is needed. The consultation closed on 30 September 2026.
The consultation outlines three possible regulatory approaches:
- A statutory code of practice supported by guidance;
- A new legal duty to consult and negotiate with trade unions or elected staff representatives before introducing WMT; or
- The issuance of nonstatutory guidance alone.
While no immediate legal changes are proposed, the consultation reflects the government’s broader focus on transparency, accountability, and employee involvement in workplace decision-making, particularly where workplace technology is used to monitor or manage workers.
Government Launches Consultation on Equal Pay Reforms
Proposed Bill or Initiative
Author: Georgia Fisher, Associate
The UK Government has launched a consultation on wide-ranging reforms to the equal pay framework in England, Scotland, and Wales. The proposals are divided into two phases and would significantly expand pay transparency, enforcement mechanisms, and equal pay protections:
- Phase 1 – focuses on strengthening the existing framework and includes proposals requiring employers to disclose pay information in job advertisements, mandating equal pay audits and job evaluation schemes following certain findings of pay discrimination, reintroducing statutory questionnaires to assist claimants in obtaining pay information, and creating a new.
- Phase 2 – would broaden protection beyond sex-based equal pay claims by extending aspects of the equal pay framework to race and disability discrimination. Proposed measures include expanded tribunal remedies, broader comparator rules, more flexible limitation periods, equal-value claims for race and disability pay disparities, and a new duty on parties involved in outsourcing arrangements to take reasonable steps to promote pay equality.
The consultation remains open until 27 October 2026.
