Employment Rights Act: What Changes from October 2026 for Tech Employers

What changes, and when

The Employment Rights Act 2025 is coming in over several stages. Some changes are already in force: since April 2026, statutory sick pay has been payable from the first day of sickness and paternity leave has been a day-one right. The next two stages affect almost every employer, including small and mid-sized tech teams.

• 1 October 2026: the time limit for most employment tribunal claims rises from three months to six. In Scotland, the change for breach of contract claims follows on 9 November.
• 30 October 2026: the duty to prevent sexual harassment becomes a duty to take all reasonable steps, and employers become liable for harassment of their staff by third parties unless they have taken all reasonable steps to prevent it.
• 1 January 2027: the qualifying period for unfair dismissal falls from two years to six months, the cap on unfair dismissal compensation is removed, and dismissing staff to rehire them on worse terms becomes automatically unfair in most cases.

Six-month time limits: keep hiring records for longer

Job applicants are protected by the Equality Act from the moment they apply, so a candidate who believes they were turned down for a discriminatory reason can bring a claim. From 1 October they will have six months to do so, rather than three.

In practice, the evidence behind a hiring decision needs to be kept for longer. For a tech role that usually means:

• the job description and the criteria you shortlisted against
• interview notes and scores from each interviewer
• technical test results and how they were marked
• the reason each finalist was or was not offered the role

Check your retention policy allows for this. UK GDPR does not allow records to be kept indefinitely just in case, but keeping them for a defined period to defend a possible claim is a legitimate reason. A period a little longer than the new time limit, allowing for Acas early conciliation, is a sensible starting point. Update your candidate privacy notice to match.

Harassment: all reasonable steps, and third parties

Since October 2024, employers have had a duty to take reasonable steps to prevent sexual harassment of their staff. From 30 October 2026 that becomes all reasonable steps, which is a higher bar. If a sexual harassment claim succeeds and the tribunal finds the duty was breached, compensation can be increased by up to 25%, and the Equality and Human Rights Commission can take enforcement action.

The same date brings employer liability for harassment of staff by third parties, such as clients, customers and suppliers, unless all reasonable steps were taken to prevent it. This goes beyond sexual harassment to harassment related to other protected characteristics.

This matters more in tech than many employers expect. Consultants and contractors often work on client sites or inside client teams, support engineers deal with customers every day, and project teams regularly include staff from suppliers and partners. Practical steps include:

• a written harassment policy that covers third parties, not just colleagues
• a risk assessment that includes client-site and customer-facing work
• training for managers and interviewers, refreshed regularly
• a clear way to raise concerns that contractors can use too
• agreeing with clients and suppliers how a complaint about their staff will be handled

Candidates are protected from harassment under the Equality Act as well, so brief everyone who interviews on your behalf.

January 2027: why probation matters more

From 1 January 2027, employees can claim unfair dismissal after six months' service rather than two years, and the compensation cap is removed. Someone you hire in the next few weeks will pass six months' service in spring 2027, so the probation period becomes the point where the real decision is made.

• Set clear objectives in writing at the start.
• Keep probation to six months or less, with documented reviews along the way, for example at months one, three and five.
• Raise concerns early and record the support you offered.
• Make the decision to confirm or end employment before the six-month point.

It also raises the cost of a poor hire, which puts more weight on selection: a clear brief, a structured interview, a relevant technical assessment and proper checks on right to work, employment history and qualifications. Our article on CV fraud in tech recruitment covers the checks worth doing on every hire.

What it could mean for the candidate market

At the moment, a developer with two years' service gives up their unfair dismissal protection by moving job. From January, that protection returns after six months in a new role. We expect this to make some candidates more willing to move, particularly those who have stayed put through a quieter market. It may also make them look harder at an employer's probation process and track record before accepting an offer.

Contractors and umbrella companies

Later changes, expected in 2027, bring umbrella companies under the same regulation that already applies to employment agencies. If you use contractors paid through umbrella companies, ask your agency how they check the umbrellas in their supply chain.

A short checklist

1. Extend your retention period for recruitment records to cover six-month claims.
2. Review your harassment policy, risk assessment and training before 30 October, including third parties.
3. Agree with the clients and suppliers your staff work with how complaints will be handled.
4. Tighten probation: written objectives, scheduled reviews and a decision before six months.
5. Make sure your hiring process is structured and documented from brief to offer.

This article is a summary for employers, not legal advice. For the full detail, see the Acas guide to the Employment Rights Act 2025, and take advice from an employment solicitor on your own situation.