Employment Law: What Changes in August and October

The Employment Rights Act 2025 became law on 18 December 2025 and is being brought into force in phases across 2026 and 2027.

Several significant changes have already taken effect this year, and the next substantial phase arrives in August and early October 2026, with further reform following in January 2027.

For employers across the North East, the practical work is happening now, before the duties bite.

Here is the timeline.

What has already happened this year.

On 6 April 2026, rules simplifying the process by which trade unions gain statutory recognition came into force.

On 7 April 2026, the Fair Work Agency began operating as the enforcement body for employment rights in the UK. It has powers to investigate and take action against employers for breaches of employment law, consolidating enforcement functions previously spread across several bodies.

Changes to family leave have also formed part of the reforms, including making paternity leave and unpaid parental leave available from the first day of employment rather than after a qualifying period.

August brings union balloting changes.

Electronic and workplace balloting for trade union votes is being introduced in August 2026, replacing the requirement for postal ballots in industrial action and recognition votes.

The practical significance is that electronic balloting is generally expected to increase turnout, and turnout thresholds have been a decisive factor in whether industrial action is lawful.

Employers in sectors with union representation should expect this to change the dynamics of ballots.

October is the larger set of changes.

From October 2026, a series of duties take effect together.

Employers will have a legal duty to inform employees of their right to join a trade union. Unions will have a strengthened right of access to workplaces, subject to a defined process.

New rights are introduced for trade union representatives, including facilities and time off. Protections are strengthened against unfair practices during the recognition process and against detriment for taking part in industrial action.

Alongside the union provisions, the duty on employers to prevent sexual harassment is being significantly strengthened, and liability for harassment by third parties is being introduced. Those changes are substantial enough to warrant separate attention.

January 2027 brings unfair dismissal reform.

The most commercially significant change for many employers arrives in January 2027.

The qualifying period for protection against ordinary unfair dismissal is due to reduce from two years to six months, and the compensation cap is due to be removed.

Changes to fire and rehire practices, formally dismissal and re-engagement, are also expected at that point.

Together these substantially alter the risk profile of dismissals, particularly for smaller employers who have historically relied on the two-year qualifying period.

Regulations are lagging behind.

A recurring difficulty for employers is that detailed regulations specifying exactly what compliance requires have in several cases not been published ahead of the duties commencing.

That means employers are being asked to prepare for obligations whose precise scope is not yet defined, and existing guidance from bodies including the Equality and Human Rights Commission is being relied on in the interim.

Where regulations are outstanding, the sensible approach is to work from the statutory wording and existing good practice rather than waiting.

What employers should be doing now.

Review contracts, staff handbooks and policies against the new framework, particularly anything referencing qualifying periods, family leave eligibility or harassment.

Train managers. A great many employment claims arise from how a manager handled a situation rather than from policy content, and the reduction in the unfair dismissal qualifying period increases exposure to that.

Review probation and performance management processes. With protection applying from six months, decisions previously taken informally within the first two years will need to be evidenced and procedurally sound.

Check union-related processes, including how requests for recognition and access would be handled, even if you have no current union presence.

Support for smaller employers.

Smaller businesses across the region are the least likely to have in-house HR and the most exposed to the changes.

The North East England Chamber of Commerce, the Federation of Small Businesses and Acas all provide guidance, and Acas offers free advice and templates covering most of the relevant processes.

Employment law specialists across Newcastle are running briefings on the reforms, and several are free to attend.

What has changed for families already.

Family leave reforms formed part of the earlier phase, making paternity leave and unpaid parental leave available from the first day of employment rather than after a qualifying period.

Previously, fathers and partners generally needed 26 weeks of service before qualifying for paternity leave, and unpaid parental leave required a year.

For employers, this means checking that eligibility criteria in policies and payroll systems have been updated, since a system still applying the old qualifying periods will be refusing leave unlawfully.

Where to check the current position.

Commencement dates have shifted during the passage of these reforms and could change again, particularly following the change of government in July 2026.

Gov.uk publishes commencement regulations, Acas maintains updated guidance, and the House of Commons Library produces impartial briefings on the Act.

Anyone acting on a specific date should confirm it rather than relying on coverage published months earlier.

Share your thoughts.

Is your business ready for the October changes?