HMRC's Employment Law Changes: What Employers and Workers Need to Know:
Employment law is changing, with several important measures being introduced during 2026 and 2027.
Whether you are an employer or an employee, understanding these changes can help you know what action may be required.
Employment Tribunal Time Limits – From 1 October 2026
From 1 October 2026, the time limit for bringing most Employment Tribunal claims has increased from 3 months to 6 months.
The exact time limit can depend on the type of claim, so it is important to check the rules for your particular situation.
What is an Employment Tribunal?
An Employment Tribunal is an independent body that deals with certain disputes between workers and employers.
Claims can include matters such as:
Unfair dismissal
Discrimination at work
Unpaid wages
Breach of employment rights
Before making most Employment Tribunal claims, a person must contact Acas (Advisory, Conciliation and Arbitration Service). Acas offers a free Early Conciliation service to help the parties try to resolve the dispute before it reaches a tribunal.
Sexual Harassment – From 30 October 2026
Employers will be required to take “all reasonable steps” to prevent sexual harassment of their employees.
Employers will also have an obligation not to permit harassment of their employees by third parties, such as customers or clients.
Employers should review their workplace policies, procedures and training.
Unfair Dismissal – From 1 January 2027
For dismissals from 1 January 2027, the qualifying period for ordinary unfair dismissal protection will reduce from 2 years to 6 months.
The statutory cap on the compensatory award for unfair dismissal will also be removed.
Where Can Workers Get Help?
If a worker has a workplace concern, they can first raise it with their employer through the workplace grievance procedure.
They can also contact Acas for guidance and Early Conciliation before making most Employment Tribunal claims.
What Should Employers Do Now?
Employers should consider:
Reviewing workplace policies and procedures.
Reviewing their approach to preventing sexual harassment.
Making sure managers understand the upcoming changes.
Reviewing dismissal and disciplinary procedures.
Providing appropriate training to employees and managers.
Key Takeaway
Employment law is changing in stages throughout 2026 and 2027.
Employers should review their policies and procedures, while workers should understand where they can get help if they have a workplace concern.
If you need help understanding how these changes may affect your business, ASESA Solutions Ltd is here to help.
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