Employment · Polar Small Business Update

Employment law changes in October 2026: a small employer checklist

The government has updated its Employment Rights Act timetable. Two dates now matter for small employers: 1 October and 30 October 2026.

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From 1 October, the usual time limit for bringing an Employment Tribunal claim increases from three months to six months. From 30 October, employers must take all reasonable steps to prevent sexual harassment and must not permit harassment by third parties such as customers, clients or contractors. Small employers should review their policy, reporting route, training and records now.

Who needs to act?

Any UK small business with employees should review these changes. The third-party duty is particularly relevant to customer-facing businesses including shops, cafés, pubs, salons, trades, care providers and professional services.

The new timetable also contains trade-union measures. Even where a business has no recognised union, it is sensible to make sure managers understand how to respond if staff raise questions about representation or workplace rights.

What changes on 1 October?

The time limit for bringing a claim to an Employment Tribunal increases from three months to six months. The government says breach-of-employment-contract claims in Scotland move on 9 November 2026 instead.

This does not make every complaint valid, but it gives a worker longer to start a claim. For an employer, that makes clear notes and securely kept records even more important. Keep the documents behind recruitment, performance, disciplinary, grievance and dismissal decisions together rather than relying on memory or scattered messages.

What changes on 30 October?

Preventing sexual harassment

Employers will be required to take “all reasonable steps” to prevent sexual harassment of employees. A policy sitting unread in a folder is unlikely to be the whole answer.

Third-party harassment

Employers will have an obligation not to permit employees to be harassed by third parties. That can include customers, clients, suppliers and contractors.

Trade-union rights

Further measures cover union access, recognition procedures, representatives and protection from detriment connected with industrial action.

A practical checklist for a small employer

  1. Name a reporting route. Staff should know exactly who they can speak to, including an alternative if the normal contact is involved.
  2. Update the policy. Include examples, customer and supplier behaviour, online messages, work events and the consequences of misconduct.
  3. Assess the real risks. Look at lone working, alcohol, late shifts, home visits, customer complaints and power imbalances.
  4. Brief managers. Give them a simple process for recording, escalating and responding to concerns.
  5. Set expectations for third parties. Make acceptable behaviour clear and decide when service should be refused or a contract escalated.
  6. Keep evidence of prevention. Record training, policy reviews, risk decisions and action taken after concerns.
  7. Check record retention. Tribunal time limits are longer, so make sure relevant employment records are not being deleted too early.
Do not wait for a formal complaint. The duty is about prevention. A short, business-specific risk review is more useful than copying a generic policy and filing it away.

What should you do this week?

Start with a one-page gap check: current policy, reporting contact, manager briefing, customer-facing risks and where evidence is stored. If any situation is sensitive, disputed or already active, take advice from an employment-law professional rather than relying on a general article.

Keep the wider changes on your radar

The updated timetable also points to further changes at the end of 2026 and in 2027, including tipping law, unfair dismissal, fire and rehire, flexible working and guaranteed-hours measures. Read our broader employment-law preparation guide and check the official timetable as dates approach.

Official sources

This article is general information, not legal advice. Employment decisions depend on the facts and the law applying at the time.

Prepare for the wider employment changes

The government timetable checked on 15 October 2026 distinguishes measures already introduced from future changes. It lists a shorter unfair-dismissal qualifying period and fire-and-rehire protections for January 2027, with further changes during 2027. Future dates remain subject to the legislative process.

Use a written process for recruitment, terms, probation reviews, performance, complaints and decisions. Set a review reminder instead of allowing a probation period to pass without discussion. Keep a factual record and obtain advice before a sensitive dismissal or contract change.

Businesses using irregular hours should review the official detail as it develops. Do not assume that a future proposal is already the law, or that a short-serving worker has no existing protection. Employment law can differ in Northern Ireland.

Follow the official implementation timetable and return to the compliance hub. Use Document Vault to organise the records.