Employment Rights Act 2025 – revised timeline for key changes

Mark McKeating, Partner

Contributors: Biba Metcalfe, Trainee Solicitor

The Department for Business and Trade has published an updated timeline for the implementation of key measures under the Employments Right Act 2025.

Trade union reforms

The first of the forthcoming changes will take effect on 31 August 2026, when electronic workplace balloting for statutory trade union ballots is introduced.

A broader change of trade union reforms is also scheduled to come into force on 30 October 2026:

• A new duty of employers to inform workers of their right to join a trade union.
• Enhanced rights to trade union access to the workplace.
• Reforms aimed at improving access and addressing unfair practices during the recognition and derecognition process.
• Additional recognition measures, including the freezing the bargaining units upon receipt of a recognition application.
• New rights for trade union representatives.
• Extended protections against detriment for workers participating in industrial action.

The above reforms were previously earmarked to come into effect on 1 October 2026.

These changes are expected to have a significant impact on industrial relations and workplace engagement practices, and employers should begin considering how they will meet their new obligations.

Protection against workplace harassment

Also due to take effect on 30 October 2026 are important reforms to workplace harassment protections. This is a change from the previous plans to introduce these measures on 1 October 2026.

Employers will be required to take all reasonable steps to prevent sexual harassment in the workplace. In addition, employer liability for harassment committed by third parties will be reintroduced.

Although primary statutory provisions are expected to come into force on this date, the supporting regulations are likely to follow later in the year. Employers should continue to review their policies, training programmes and reporting procedures to ensure they are well positioned to demonstrate compliance.

Two-tier workforce code

The Government has also confirmed the proposed “two-tier workforce code” will be introduced in October 2026, although the precise commencement date is yet to be announced. The code is intended to ensure that outsourced private sector employees are not employed on less favourable terms than employees who transferred from the public sector.

Further guidance is expected in due course and affected employers should monitor developments closely.

Reform of tipping legislation

The planned reforms to tipping legislation have been delayed, originally expected to take effect in October 2026, the changes are now scheduled for December 2026.

Employers operating in sectors such as the hospitality sector, where tipping forms a significant part of the employee’s remuneration should review the forthcoming guidance once published and prepare for any changes to existing arrangements.

Extended employment tribunal time limits

From 1 October 2026, Claimant’s in England and Wales will have 6 months rather than 3 months to bring claims before the Employment Tribunal. For Scotland, the extension will apply to breach of employment contract claims from 9 November 2026.

These changes are likely to increase the period during which employers may face potential claims and may require employers to review document retention and record keeping practices accordingly.

Reforms expected in 2027

Several of the most significant Employments Right Act reforms remain scheduled for implementation during 2027.

In January 2027 the Government currently plans to introduce:

• A reduction in the qualifying service requirement for unfair dismissal claims from 2 years to 6 months.
• The removal of the cap on compensatory awards for ordinary unfair dismissal claims.
• New restrictions and protections relating to “fire and rehire” practices.

The following measures remain expected in 2027 but do not yet have confirmed implementation dates:

• Menopause action plans.
• Changes to collective consultation threshold.
• Guaranteed hours provisions.
• Regulations to prevent the misuse of Non-Disclosure Agreements (NDAs) in harassment and discrimination cases.

What should employers do now?

Whilst many of the reforms are months away, it is important for employers to begin workplace planning and review policies, procedures and contracts in advance of the changes.

The Employment Rights Act 2025 represents a substantial shift in the employment law landscape and organisations that prepare early will be better placed to manage compliance risks and implement the necessary changes effectively.

For further assistance, please contact our Employment team on 0161 832 3434.