October 2026 introduces further reforms that directly affect how employers manage contractual change, workplace conduct, and employment disputes.
Fire and Rehire Restrictions
The Employment Rights Act 2025 significantly restricts the use of “fire and rehire” practices. From October 2026, dismissals arising from an employee’s refusal to accept contract changes will be automatically unfair unless the employer can demonstrate that the changes were necessary due to serious financial difficulty.
This marks a major shift in how contractual variations must be approached. Employers will need to rely more heavily on consultation, agreement, and contractual flexibility rather than dismissal and re-engagement strategies.
New Duty to Prevent Sexual Harassment
Employers will also be placed under a statutory duty to take all reasonable steps to prevent sexual harassment and third-party harassment in the workplace. While further guidance is expected, employers should not wait to act.
Clear policies, regular staff training, effective reporting channels and prompt investigation procedures will all be critical in demonstrating compliance with this new duty.
Extended Tribunal Time Limits
Another important change is the extension of time limits for bringing certain Employment Tribunal claims. From October 2026, the standard time limit will increase from three months to six months. This gives employees more time to pursue claims and increases the likelihood of historic workplace issues resurfacing.
What Employers Should Do Now
To prepare for these changes, employers should review contractual variation processes, harassment prevention measures and internal dispute resolution systems. Early legal advice and proactive policy updates will help minimise exposure as the law continues to evolve.