Employment Law Senior Paralegal Jack Cooper examines two key developments employers should be preparing for now.
Extension of employment tribunal limitation periods
One of the most notable changes is the extension of the time limit for bringing most employment tribunal claims. The limitation period has now increased from three months to six months.
This sits alongside the existing ACAS Early Conciliation process, which can effectively pause the limitation clock while conciliation takes place. In practice, an employee may have significantly longer to bring a claim than employers have previously been used to.
Although six months may not seem like a substantial increase, it can create practical challenges when defending claims. For example, an employee who leaves a business following a disciplinary process in October 2026 may not bring a claim until many months later. By that time, the manager who conducted the investigation may have moved on, key witnesses may struggle to recall events accurately, and important documents may be harder to locate. Defending the claim becomes more difficult, regardless of its merits.
For this reason, I would encourage employers to place even greater emphasis on their record-keeping practices. Clear, contemporaneous records can often make the difference between successfully defending a claim and struggling to evidence what happened.
Employers should consider:
- Keeping detailed investigation notes and meeting records
- Documenting the reasons behind key management decisions
- Ensuring personnel files are complete and up to date
- Reviewing document retention policies to ensure records are retained for an appropriate period
- Training managers on the importance of creating and preserving accurate records
It’s worth noting that the new six-month limitation period will only apply where the relevant act, omission or dismissal takes place on or after 1 October 2026. Claims relating to events before that date will remain subject to the current three-month time limit.
Stronger duties to prevent harassment
Another significant change concerns employers’ obligations to prevent harassment in the workplace.
Employers are now required to take all reasonable steps to prevent harassment, including sexual harassment and harassment related to protected characteristics.
For sexual harassment in particular, the wording has changed from ‘reasonable steps’ to all reasonable steps.
In my view, this shift in wording is important. Employment tribunals are likely to scrutinise more closely what proactive measures employers have taken, rather than simply whether a policy exists.
The standard will vary depending on factors such as the size of the organisation, its resources and the nature of its operations. However, employers will need to demonstrate that they have actively considered risks and implemented appropriate preventative measures.
Businesses that fail to meet this standard could face significant consequences. If a tribunal finds that an employer has breached its duty, compensation awarded to a successful claimant may be increased by up to 25%.
Liability for third-party harassment
The changes also broaden employers’ responsibilities in relation to harassment carried out by third parties such as clients, customers, contractors or suppliers.
Many employers already focus their workplace training on interactions between colleagues. However, organisations should also consider situations where employees regularly interact with members of the public or external contacts.
For example, a retail employee may be subjected to discriminatory comments from customers, or a receptionist may experience inappropriate behaviour from a visitor. Employers should consider what steps can reasonably be taken to reduce these risks and support employees if incidents occur.
Simply responding after an incident has taken place may not be enough. Employers should be able to demonstrate that they have thought about these risks in advance and taken preventative action where appropriate.
What should employers be doing now?
With the Employment Rights Act changes now in effect, I would advise employers to review their existing practices and identify any gaps to ensure they remain compliant.
Practical steps include:
- Reviewing and updating anti-harassment, equality and dignity at work policies
- Providing meaningful and regular training for both employees and managers
- Ensuring reporting procedures are clear and accessible
- Carrying out workplace risk assessments to identify situations where harassment may arise
- Keeping records of training, complaints and any actions taken
- Displaying appropriate guidance and reminders throughout the workplace
- Reviewing supplier, contractor and client arrangements where employee interactions with third parties are common
The importance of taking a proactive approach to the Employment Rights Act 2025
The implementation of these changes is likely to have a significant impact on how employers manage workplace issues and defend employment tribunal claims. Longer limitation periods mean employers may need to retain records for longer and be prepared to deal with claims arising many months after events have occurred.
At the same time, the strengthened duty to prevent harassment will require businesses to take a more proactive approach to protecting their workforce.
In my experience, employers who regularly review their policies, train their staff and maintain clear records are generally in the strongest position if issues arise. Taking steps now to assess your organisation’s current practices can help reduce risk and ensure compliance with the new legal requirements.
If you are unsure whether your business is prepared for these changes, seeking legal advice at an early stage can help identify potential areas of risk and ensure appropriate measures are in place.
Contact our Employment team on 03456 465 465 or email enquiries@rotherabray.co.uk.
