Employment Law Changes: What Small Employers Must Do Now

Employment law changes are approaching in stages, not all at once. For a small employer, the sensible response is to put the confirmed dates in the diary, check the decisions most likely to create risk and leave room to adjust as the remaining regulations are finalised.

The government updated its implementation timetable on 25 September 2026. The first changes are expected on 1 October, followed by further measures on 30 October and in January 2027. The government says future dates remain subject to parliamentary processes and may change.

What changes first?

1 October 2026: The normal time limit for bringing an Employment Tribunal claim is due to increase from three to six months. The change for breach of employment contract claims in Scotland is scheduled for 9 November. An extended claim window does not mean employers should retain every piece of employee information indefinitely. It does make prompt investigation, accurate notes and a defensible records policy more important.

30 October 2026: Planned changes include stronger trade union access and representative rights. Employers are also expected to have to take all reasonable steps to prevent sexual harassment of employees, with a new obligation concerning harassment by third parties. There is already a duty to take reasonable steps: the new wording strengthens it. A customer facing business should examine what happens when a complaint involves a customer, supplier or visitor, not just another employee.

January 2027: The timetable includes a duty to inform workers of their right to join a trade union, a reduction in the ordinary unfair dismissal qualifying period to six months for dismissals from 1 January 2027, removal of the cap on compensatory awards and protections relating to fire and rehire. The exact operational detail of some measures still depends on further regulations and guidance.

Why this matters to a small business

The biggest mistake would be to treat this as a paperwork project. A policy can say the right things while a line manager makes an inconsistent decision, fails to record a concern or promises that a probation period removes all risk. In a small team, those decisions are often made quickly and informally. The cost of a dispute can be disproportionate even when the employer ultimately defends it.

My view is that the useful preparation is a short review of real management decisions: how you recruit, set expectations, handle complaints, document performance and approve a dismissal. This is not an argument to avoid hiring. It is an argument to make the people process as deliberate as the financial case for a role.

A practical 90 day employer checklist

1. Put the dates and owners in one place

Assign one person to track the government timetable and Acas guidance. Note what is already law, what has a commencement date and what is still awaiting detail. Review the list monthly rather than forwarding every headline to the team.

2. Audit the decisions that would be difficult to explain later

Look at recruitment promises, probation reviews, performance conversations and dismissal approvals. Is there a clear reason, a fair process, a record of what was discussed and a named decision maker? A probation clause is useful for setting expectations, but it is not a substitute for fair management or advice on the applicable law.

3. Test your harassment response in a real scenario

Ask managers what they would do if a customer repeatedly made inappropriate comments to an employee. Check the reporting route, how concerns are recorded, what immediate protection is available and how the business would respond to the third party. Training should give people a procedure they can actually use.

4. Prepare neutral communication about union rights

The government has published its response on the planned duty to inform workers, but standard wording and implementation details are still being set through regulations. Make room for the statement in your onboarding and annual communication process. Do not draft a restrictive message or assume the duty is already in force.

5. Get specialist advice before a high stakes decision

If you are considering a dismissal, restructuring, contractual change or response to a union access request, seek employment law or HR advice on the facts. Small businesses should build a simple escalation point before a problem arises, not only after a claim arrives.

What not to do

Do not rewrite every contract this weekend, assume every proposed measure has already commenced or copy a generic policy that managers cannot follow. Equally, do not wait until January to review weak processes. The strongest preparation is proportionate: a current timetable, clear responsibility and better evidence of how decisions are made.

Owners weighing a new role may also find our small business hiring decision guide useful. Employment obligations are one part of that decision; demand, capacity and cash flow matter too.

Sources and scope

Dates and legal changes are based on the government’s 25 September 2026 timetable, Acas guidance and the government response on the planned union statement. This article is Julian Frincu’s operational analysis for Skills 2 Grow Business Journal, not legal advice. Check the latest official guidance and obtain qualified advice for a specific employment issue.