UK employment law reforms

The United Kingdom is implementing a series of legislative reforms to its employment laws, affecting workplace protections, dismissal procedures, and tribunal processes.

Under the Employment Rights Act 2025, the legal standard for preventing sexual harassment will shift from taking ‘reasonable steps’ to taking ‘all reasonable steps’ starting 30 October 2026. This update includes making employers liable for harassment committed against staff by third parties, such as customers or clients, unless they can prove they took all reasonable preventative measures.

Further reforms scheduled for late 2026 and early 2027 target unfair dismissal and tribunal timelines. Effective 1 October 2026, the timeframe for most Employment Tribunal claims, including discrimination, will extend from three months to six months. Additionally, starting 1 January 2027, the qualifying period for ordinary unfair dismissal will be reduced from two years to six months. During this same period, the statutory cap on compensatory awards will be abolished, with awards instead being limited by an employee’s actual and projected financial losses. Protections against unfair dismissal regarding spent convictions are also set to be removed.