Employment Law - Looking Ahead

To help you navigate employment law reforms during the next quarter and beyond, we have updated our Employer Guide to the Employment Rights Act 2025.

Our updated Employer Guide can be viewed online here or downloaded here.

Coming in on 25 August 2026

The government intends to introduce modern and secure electronic balloting for statutory trade union ballots and for recognition and derecognition ballots.

According to the recently updated government webpage, electronic and workplace balloting will be introduced for statutory trade union ballots from 25 August 2026, with electronic balloting to be extended to statutory recognition and derecognition ballots during 2027.

For more information on the reforms to workplace and electronic balloting, and what you can do to prepare, see our recent Bitesize ERA episode here.

Coming in on 30 October 2026

According to the government's updated timeline the following reforms will come into effect on 30 October 2026:

The duty to inform workers of their right to join a trade union

Employers will be required to give workers a written statement advising them of their right to join a trade union. This will need to be given at the same time as the worker's section 1 statement, and at "other prescribed times" (which will be set out in secondary legislation).

How should employers prepare?

You should start to review current onboarding process and documentation, prepare template statements and update HR systems to ensure compliance ahead of 30 October 2026. You should also ensure that HR and/or relevant managers are informed of the changes and are prepared for potentially higher union membership, particularly in non-unionised sectors.

Strengthening trade unions’ right of access

Qualifying trade union officials will have the right to request access to workplaces (whether that be in person or via digital communication) to meet, support, represent, recruit or organise workers (regardless of whether they are members of a trade union) and/or to facilitate collective bargaining – but not to organise industrial action.

There will be a process for trade unions and employers to agree "access agreements" for this purpose and an application to determine access can be made to the Central Arbitration Centre (CAC) by the union if the employer fails to respond or negotiations are not successful.

If an access agreement is breached, a party may complain to the CAC and there may be financial penalties for employers.

Note that this new right is likely to lead to greater union activity and presence, and unions are likely to target larger employers who do not currently recognise a union, or who have previously refused a recognition request.

How should employers prepare?

The government published its response to its consultation on 6 July 2026, and the final statutory Code of Practice: Right of trade unions to access workplaces was laid before Parliament on the same day.

You should now review the Code of Practice and identify what changes you need to put in place ahead of 30 October 2026. Pease keep an eye out for our briefing on the key aspects of the new code and what you need to do, which we will publish shortly.

Unfair practices in the trade union recognition and derecognition process

The existing provisions on unfair practices during trade union recognition or derecognition will be strengthened. Key reforms will include, for example:

• Employers will be required to provide the Central Arbitration Committee (CAC) with information about workers in the proposed bargaining unit within five working days of being notified of a union's recognition application or be subject to a remedial order from the CAC.
• New provisions will establish a structured timetable for agreeing arrangements for the union to access workers in the proposed bargaining unit (with a 20-day negotiating period).
• The prohibition on unfair practices (currently limited to the ballot period only) will be extended to cover the entire recognition process from the point at which the CAC accepts the union's application.
• The time limit for bringing unfair practice complaints will be extended from one working day to five working days after the ballot closes. The ballot outcome will not be notified to the parties until that period has expired.
• The number of workers in the bargaining unit will be "capped" at the point the CAC receives the union's application. Employers may continue to recruit, but new starters will not count towards the bargaining unit during the recognition process and will not be entitled to vote in any recognition ballot. A similar cap will also apply where the appropriateness of a bargaining unit is reviewed within three years of a recognition declaration.

How should employers prepare?

You should begin reviewing your internal processes now to ensure you are ready to comply with these reforms ahead of 30 October 2026. Consider whether refresher training is required on unfair practices and how to avoid them. You should also review the revised Code of Practice: Access and Unfair Practices During the Recognition and Derecognition Process, which provides practical guidance on how to comply with these changes. A final draft version of the Code was laid before Parliament on 6 July 2026 and is expected to come into force on 30 October 2026.

New rights and protections for trade union representatives

Generally, where trade union officials are entitled to take time off for duties or training, employers will be required to provide reasonable accommodation and other facilities for the same. Employers will also be required to allow trade union equality representatives reasonable time off for specific equality-related activities (where certain conditions are met) and to provide reasonable accommodation and other facilities for the same.

How should employers prepare?

Ahead of 30 October 2026, you should assess current time off and facility provisions for union representatives and then consider whether (i) any employees are also union equality representatives; and (ii) further provision or budgets are required. Ensure that HR and/or managers are trained as appropriate.

Extending protections against detriments for taking industrial action

Workers will be protected from detriment (i.e. a sanction short of dismissal) for taking part in industrial action.

How should employers prepare?

Ahead of 30 October 2026, you should review current policies on sanctions short of dismissal during industrial action and ensure adequate training is provided to HR and managers.

Coming in 30 October 2026

The new harassment measures include:

Employers to take ‘all reasonable steps’ to prevent sexual harassment of their employees

Employers will be under a duty to take "all reasonable steps" to prevent sexual harassment of their employees during the course of their employment. This is wider than the current duty to take "reasonable steps". The government will have the power to specify in regulations what is meant by "all reasonable steps" but has indicated that this will depend on the specific circumstances of the employer.

How should employers prepare?

Ahead of 30 October 2026, you should review your current sexual harassment risk assessment (in accordance with the EHRC's existing guidance – see here) and consider if there are additional steps you should be taking. You should also consider (i) revising relevant policies and procedures e.g. equal opportunities policy / bullying and harassment policy / grievance procedures; (ii) and/or rolling out further sexual harassment training to all staff; and (iii) ensuring that managers and HR are trained on the correct procedures for responding to incidents of harassment.

Obligation on employers not to permit the harassment of their employees by third parties

Employers will be under a duty to take "all reasonable steps" to prevent third party harassment of their employees; this includes sexual harassment and harassment in relation to relevant protected characteristics under the Equality Act 2010.

How should employers prepare?

Ahead of 30 October 2026, you should carry out risk assessments and identify and implement steps needed to mitigate those risks, engaging with staff to identify any potential problem areas and feed this into any risk assessment. You should also update any existing policies and procedures to reflect the new duty and consider including appropriate wording in any supplier/customer contracts. Management and HR training should be scheduled to cover the new changes and how to manage escalations, and all staff should be trained on identifying and reporting third party harassment.

Coming in on 1 October 2026

The time limit within which someone can bring an employment tribunal claim will be increased from 3 to 6 months. The increased limit will only apply where the relevant date (i.e. the date of the infringement, as applicable) falls on or after 1 October 2026.

This increase also applies to breach of contract in employment tribunals in England and Wales (for breach of employment contract claims in Scotland this change will take place on 9 November 2026).

How should employers prepare?

Given that this change will mean employees have longer to bring a claim, witnesses may face challenges remembering events that happened further back in the past. Ahead of 1 October 2026, you should consider revising your record systems to ensure witnesses have accurate information to draw on in the event of their memories fading. You may also want to ensure that adequate notes are taken during witness investigations, and that detailed outcome letters are given so that important considerations are not lost. You may also consider reviewing your early dispute resolution mechanisms to try and encourage early resolution.

The government has updated its guidance on gender pay gap reporting to confirm that employers must base their reports on employees' biological sex rather than gender identity, reflecting the definitions under the Equality Act 2010. The guidance also addresses employees who hold a Gender Recognition Certificate (GRC), directing employers to use the employee's biological sex for reporting purposes, whilst reminding them that disclosing an individual's pre-GRC gender may constitute a criminal offence, subject to limited exceptions including where disclosure is required by law.

How should employers prepare?

In light of these changes, you should review your internal HR and payroll processes this quarter to ensure they hold reliable biological sex data and that reporting mechanisms align with the updated guidance. Appropriate confidentiality safeguards (including restricting access to sensitive data and anonymising information to prevent identification of individual employees) should also be put in place.

Open Consultations:

• Reforms of zero hours and similar contracts - closes 25 August 2026

• Employment rights for unpaid carers and parents of seriously ill children – closes 1 September 2026
• Time off for public duties - closes 4 September 2026
• Holiday pay compliance and enforcement – closes 22 September 2026
• Equal pay and pay discrimination - closes 27 October 2026

Outcomes from concluded consultations may also be published this quarter. These will be available via the Government's Make Work Pay page.

Draft updated Employer's guide to right to work checks - expected 1 October 2026

The Home Office has published a revised Employer's guide to right to work checks, alongside a draft Code of Practice on preventing illegal working, expected to take effect on 1 October 2026.

The updated guidance reflects the changes brought about by section 48 of the Border Security, Asylum and Immigration Act 2026 (the 2026 Act) which is to come into effect from 1 October 2026. The implementation of this section will expand the illegal working regime beyond traditional employment contracts to capture a wider range of working arrangements, including those involving workers, individual sub-contractors, and work sourced through an online matching service. The 2026 Act also extends civil penalty liability to more contractual arrangements, including where a business is not directly employing a worker, to increase right to work checking responsibilities on employers.

Key features of the revised guidance include:

• "Extended liability": civil penalty liability for illegal working will no longer rest solely with the direct employer. Liability may also extend to other parties in a contractual chain, operators of an online matching service, or employers who permit substitution, where such a party may be regarded as employing the individual who personally performs the work or services unless the "prescribed requirements" have been complied with. This is reflected in the guidance where there is now repeat reference to worker as opposed to employee.

• "Prescribed requirements": to secure a statutory excuse against civil penalty, employers and other relevant parties must satisfy certain prescribed steps as set out within the guidance. For direct engagements, this means completing a right to work check before employment commences. Where "extended liability" applies in indirect contractual arrangements, the relevant party must have suitable contractual terms, substitution controls and identity verification systems in place before the work or services begin.

• Real life examples of the working arrangements: demonstrating how the expanded regime will operate in practice, and the circumstances in which right to work check obligations may not arise.

It is important for employers to understand that both the Code of Practice and Guidance are currently in draft form. As such, we may see this clarified and amended over the coming months. However, there are steps employers can take now to best prepare for the upcoming changes:

• Consider whether right to work policies and processes are up to date and able to cope with the incoming changes
• Identify any areas of the business which may be impacted by the expanding scope of the right to work regime and ensure policies are amended to capture right to work checks for workers and sub-contractors
• Update relevant contracts to ensure they contain appropriate right to work check clauses
• Ensure the teams who deal with right to work checks are appropriately skilled and aware of the incoming changes

These changes will have a significant impact on all businesses who employ staff throughout the UK. Our business immigration team offer bespoke training on right to work compliance and we'd urge companies to consider whether their teams could benefit from this given the overhaul of the current right to work regime.

Other notable changes

Whilst the key change will be to the right to work guidance, there are also some other notable changes in the pipeline for immigration including:

• Graduate visa reduction: from 1 January 2027, the standard duration of the Graduate visa will drop from two years to 18 months. For PhD holders, they will retain the three-year duration.

• New settlement regime: The Government's proposed "Earned Settlement" model would extend the qualifying period for indefinite leave to remain from five years to ten years. It would also introduce a contribution-based settlement system, requiring migrants to demonstrate good conduct, meaningful contribution, and integration into UK society before becoming eligible for settlement. Further details on how the scheme will operate are expected later in 2026, following the public consultation that closed in February. Businesses should be alert to upcoming amendments to this regime, and consider how best they can prepare. You can read more on the changes here.

• Changes to the Temporary Shortage List (TSL) and Immigration Salary List: the latter Immigration Salary List is due to be abolished from 31 December 2026. However, the 'TSL' may also see changes as the Migration Advisory Committee published their findings on which occupations should be included on the future TSL. Their recommendations were that only 28 (down from 52) SOC codes should be retained on the TSL for an initial period of 18 months. Examples of codes they recommend are included are:
  
  • 3113 Engineering technicians
  • 3116 Planning, Process and Production Technicians
  • 3133 Database administrators and web content technicians
  • 3544 Data analysts
  • 3512 Ship and hovercraft officers

All of the above codes were said to have some evidence of historical shortage whilst being in industries which also show signs of growth and future demand. If your business has staff sponsored in TSL SOC codes, you may wish to consider extensions to visas now if possible. Given the significant implications changes to this list may have for recruitment, retention, workforce planning and sponsorship costs, this remains a critical issue for large employers to monitor closely.