October 2026 employment law changes (what’s changing, what SMEs should do
Who this is for
UK SME owners and managers who want a clear, practical summary of what’s changing in October 2026 and what to do next.
Quick summary (the changes that matter)
Based on the Employment Rights Act 2025 timeline, key changes due in October 2026 include:
· New/stronger duties around harassment (including steps to prevent sexual harassment, and changes around third-party harassment)
· Employment tribunal time limits increasing to 6 months for most claims (from 3 months)
· More changes to trade union rules and increased protection against detriment for industrial action
These changes are important because they affect:
· how long you may be exposed to claims
· how you document decisions and manage risk
· what “good practice” looks like in investigations, grievances, and conduct issues
1) Tribunal time limits: most claims go from 3 months to 6 months (from 1 October 2026)
What’s changing
The time limit for most employment tribunal claims is expected to increase to 6 months (currently 3 months).
Why SMEs should care
This is not just a legal technicality. It changes your risk window.
· A dispute that feels “done” after a few months may still come back.
· You may need to keep evidence and notes more carefully, for longer.
What to do now (practical steps)
· Tighten your record-keeping: meeting notes, investigation notes, evidence, outcomes.
· Use consistent templates for performance, sickness, disciplinary, and grievances.
· Do a “case file” habit: if it’s contentious, store everything together.
2) Harassment: stronger prevention expectations (from 30 October 2026)
What’s changing
From 30 October 2026, changes are due around:
· sexual harassment prevention duties (including what “reasonable steps” means, with detail expected to develop)
· third-party harassment (for example, harassment by customers/clients)
Why SMEs should care
Even if you have a policy, the real question is: what did you actually do to prevent it?
What to do now (practical steps)
· Add a short anti-harassment action plan (even 1 page) covering:
o reporting routes
o how you investigate
o what training/managers need
o how you manage customer/client behaviour
· Make sure managers know:
o how to spot harassment
o how to respond in the moment
o how to record concerns properly
3) Industrial action and trade union changes (from 30 October 2026)
What’s changing
The Act sets out further changes to trade union rules and protections, including increased protection against detriment for industrial action.
What to do now
If you have a unionised workforce (or could in future):
· review how managers communicate during disputes
· avoid knee-jerk actions that could look like retaliation
· get advice early if you’re unsure
Where AI helps (and where it doesn’t)
AI can help with:
· drafting a first version of letters
· creating checklists and investigation plans
· turning notes into a clean timeline
AI is risky when:
· the issue involves protected characteristics, whistleblowing, or likely litigation
· facts are disputed
· you need judgement calls with legal consequences
How Phronesis fits
Phronesis is built for UK SME HR scenarios. It helps you:
· follow an ACAS-aligned process
· separate facts vs assumptions vs judgement
· see confidence labels so you can spot risk early
· keep a downloadable Q&A log for consistency and audit trail
Important note
This is general information, not legal advice. Some October 2026 changes are subject to consultation and how they’re implemented may evolve.
Helpful links
· ACAS Employment Rights Act 2025 timeline: https://www.acas.org.uk/employment-rights-act-2025
· GOV.UK Make Work Pay consultations: https://www.gov.uk/government/collections/make-work-pay
· GOV.UK Working, jobs and pensions: https://www.gov.uk/browse/working