A series of employment-law changes take effect during late 2026 and early 2027. Three are particularly relevant to small and medium-sized employers because they increase the importance of good HR administration, consistent management processes and reliable records. The principal changes covered here apply in Great Britain (England, Scotland and Wales); employment law in Northern Ireland is separate.
Nov 9, 2026: employment tribunal time limits increase
For most employment tribunal claims, the normal time limit will increase from three months to six months where the problem at work happens on or after Nov 9, 2026. This gives employees and employers more time to try to resolve disputes, but it also means that an employment issue can remain capable of becoming a tribunal claim for longer.
For employers, this makes record retention and disciplined case management more important. Notes of meetings, correspondence, decisions, warnings, grievance records and supporting documents should be stored consistently and remain accessible. Relying on an individual manager’s memory is increasingly risky.
Oct 30, 2026: stronger duty to prevent sexual harassment
From Oct 30, 2026, employers will be required to take “all reasonable steps” to prevent sexual harassment of workers. The current duty refers to “reasonable steps”. The change means employers should be able to demonstrate that they have considered the risks relevant to their organisation and taken all reasonable preventative measures available to them, rather than reacting only after an incident.
What is reasonable will depend on the organisation, including its size, sector and the nature of employees’ work. Acas guidance emphasises preventative action across the organisation, supported by appropriate policies, reporting arrangements, training and records.
Oct 30, 2026: third-party harassment becomes an employer risk
From the same date, employers can also be liable where a worker is harassed by a third party unless the employer has taken all reasonable steps to prevent it. A third party can include a customer, client, service user, contractor, consultant, supplier or member of the public, and harassment can occur online as well as in person.
This is particularly relevant to businesses whose staff have regular contact with customers, clients, visitors or contractors. The issue should therefore form part of normal workplace risk management, not sit only within an employee handbook.
Five practical actions to take before October
- Review exposure to third parties. Identify which employees regularly interact with customers, clients, service users, contractors, suppliers or members of the public, and where problems could arise.
- Review policies and reporting routes. Make sure harassment, bullying and grievance procedures are current, easy to find and clear about who an employee should contact if they have a concern.
- Train managers and employees. A written policy is unlikely to be enough on its own. Managers should know how to respond to a complaint, and employees should understand expected standards and reporting arrangements.
- Keep evidence of preventative action. Retain training records, policy review dates, risk assessments, incident logs and notes of actions taken. Where relevant, review customer or supplier terms and conditions and operational procedures.
- Strengthen probation and performance records. From Jan 1, 2027, the qualifying period for ordinary unfair dismissal protection is due to reduce from two years to six months for dismissals from that date. Employers should use probation periods properly and document performance, conduct and management decisions from the outset.
Why payroll and HR administration need to work together
These changes do not turn payroll into an employment-law function, but they do reinforce the value of connected payroll and HR administration. Starter dates, contractual information, probation dates, absence records, employee changes, leavers and supporting documents should be controlled through a consistent process rather than being scattered across emails and spreadsheets.
For a growing business, a simple HR system with clear responsibilities and reliable records can reduce administrative risk and make it easier for managers to deal with issues promptly. Where a matter requires interpretation of employment law, investigation support or legal advice, that work should be referred to an appropriate HR or employment-law specialist.
Where Ardein fits
Ardein can support the financial and administrative side of the employment process, including accurate payroll records, starter and leaver information, structured HR-system workflows and dependable record keeping. Employment-law advice remains a specialist legal or HR function.
Important note
This article provides general information only and is not legal or employment-law advice. Employers should obtain specialist advice where a particular employment issue or complaint requires it.
Sources
Acas – Employment Rights Act 2025 guidance
GOV.UK – Plan to Make Work Pay and Employment Rights Act timeline update