DC Forward Focus – Q3 2026

Key dates this quarter

Open Government consultations

Employment Rights Act 2025 (ERA 2025)

A whole series of changes will come into force this quarter under the ERA 2025, including:

Increase to employment tribunal time limits

From 1 October 2026 (or 9 November 2026 for breach of contract claims in Scotland), the limitation period for employment tribunal claims will increase from 3 to 6 months. This follows the extension of the Acas early conciliation period to 12 weeks last year.  The new time limit will apply where the act relied upon takes place on or after 1 October 2026 (or 9 November 2026, as applicable).

Employees and workers will have longer to decide whether to pursue claims, potentially increasing the number of tribunal cases and prolonging uncertainty for employers. In unfair dismissal cases, for example, an employer may not be aware of a claim for several months after the employee has left. We can expect to see an increased focus on mediation and settlement as employers seek to avoid disputes remaining unresolved for long periods.

Action points: Review tribunal and litigation strategies and your document-retention policies.

Sexual and third-party harassment

From 30 October 2026, an employer must take ‘all reasonable steps’ to prevent the sexual harassment of its employees in the course of their employment (wider than the current duty to take ‘reasonable steps’). From that date, an employer will also be liable for the harassment of its employees by third parties (in relation to all forms of harassment under the Equality Act 2010), unless it can show that it took ‘all reasonable steps’ to prevent it.

In relation to sexual harassment, the Government intends to publish regulations specifying what are to be regarded as ‘reasonable steps’, but these are not anticipated until 2027/2028 so there will be a period of uncertainty for employers. In the meantime, the Government has confirmed that what is ‘reasonable’ will depend on an employer’s particular circumstances.

The Equality and Human Rights Commission (EHRC) will enforce the preventative duty in relation to sexual harassment. In addition, where an employer has failed to comply and an employee succeeds in a sexual harassment claim, tribunal compensation may be increased by up to 25%. Given that compensation for discrimination claims is uncapped, financial exposure could be significant. We may see an increase in claims for harassment in the employment tribunal.

Further detail on this reform is discussed in our webinar: A new era of accountability: sexual harassment prevention, third party harassment risks and the changing regulatory landscape.

Action points: Review the existing EHRC Sexual Harassment and Harassment at Work: Technical Guidance, the EHRC: Employer 8-Step Guide: Preventing Sexual Harassment at Work and the Acas guidance, revisit risk assessments and reporting lines, update relevant policies and procedures, and ensure that staff receive appropriate training. Seek to deal now with any existing cultural issues.

Industrial relations

A number of trade union reforms will take effect from 30 October 2026, including:

• • Informing workers of trade union rights: Employers will be required to notify workers in writing of their right to join a trade union. The Government has yet to confirm what form the statement must take and what information must be included. We can expect to see increased union membership in certain sectors.

Action points: In due course, update onboarding documentation and, if required, prepare communications for existing staff.

• • Trade union access rights: Trade unions will gain a statutory right of access to workplaces (both physically and digitally) where an ‘access agreement’ is in place. The Government’s Code of Practice: Right of trade unions to access workplaces is currently being laid before Parliament. We can expect to see increased union visibility and activity. Further information on this reform can be found in our previous article.

Action points: Consider how access agreements might operate in practice and whether existing union and/or employee engagement needs to be strengthened.

• • Time off and facilities for trade union representatives: Rights for trade union officials and trade union learning representatives, who already have statutory rights to paid time off, will be expanded to include additional rights to reasonable facilities. New rights to reasonable paid time off and facilities will also be introduced for trade union equality representatives. Acas has produced a Code of Practice on Time Off for Trade Union Duties and Activities which is currently being laid before Parliament and will also take effect on 30 October 2026. As above, this reform may also lead to increased union activity.

Action points: Consider whether additional facilities, processes or budget may be required in light of the Acas Code.

• • Protection from detriment: Workers will have the right not to be subjected to a detriment by any act (or failure to act) by their employer, if the act (or failure) is for the sole or main purpose of preventing or deterring the worker from taking protected industrial action, or penalising them for doing so. The Government has confirmed that all forms of detriment will be prohibited, although proportionate deductions from pay during industrial action will not amount to a detriment. We can expect to see increased scrutiny of employer actions short of dismissal and possibly more tribunal claims.

Action points: Review industrial relations policies and manager training. Ensure that decisions affecting employees involved in industrial action are well-documented and supported by legitimate business reasons.

Tips & gratuities

The Government has delayed its proposed reforms to tips and gratuities while it consults on a revised Code of Practice on Fair and Transparent Distribution of Tips (see above for a link to the consultation). The reforms are now expected to take effect by December 2026.

Under the new regime, employers will need to consult either recognised trade union representatives, appointed worker representatives, or workers directly (where there are no such representatives), before preparing the first version of a written tips policy.  The policy must then be reviewed at least once every three years, with such consultation forming part of the review process. An anonymised summary of the views expressed in the consultation must be made available to all workers at the place of business.

Further details can be found in our previous article: Employment Rights Act 2025: Upcoming changes to tips and gratuities legislation.

Action points: Where relevant, consider responding to the consultation on the revised Code of Practice.

Right to work checks

From 1 October 2026  significant changes to the UK’s right to work regime are due to come into force. These changes will affect all employers and organisations who engage workers.

The key changes to the regime will be as follows:

• • liability will be extended to more business models beyond the traditional employer-employee relationship; and
  • the concept of ‘extended liability’ will be introduced where there is a chain of contracts involved in the supply of goods or services.

You can read more about this reform in our insight, ‘Expansion of Right to Work regime from 1 October 2026 – What should businesses be doing now?’. Our immigration experts will also be presenting a webinar on Wednesday 16 September 2026 at 12.30pm where they will examine the upcoming changes in more detail, explain what they mean in practice, and share the key steps organisations should be taking now to ensure they are compliant.

Action points: Review workforce arrangements now to ensure your organisation is ready. Understanding where potential risks exist, identifying affected worker populations, and implementing robust processes ahead of the deadline will be critical to avoiding compliance issues and potential penalties.

Further insights

Further detail on many of the above reforms can be found in our previous article: ‘Autumn 2026 is closer than you think: Is your organisation ready?’.  We will also be presenting a webinar, ‘Let’s get ready for October’s ERA changes’ on 23 September 2026 at 12pm in which we will unpack the key changes and share practical tips to help your organisation stay compliant.

If you would like to discuss any of the above reforms further, please contact a member of the Doyle Clayton team.

The articles, webinars or podcasts published on this website are current at the date of publication and are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. We cannot assume legal responsibility for the accuracy of any particular statement. Specific legal advice about your own circumstances should always be sought separately before taking any action.