Employers face a fast-moving employment landscape in 2026 and cannot afford to treat the year as a pause before new rules take effect. According to Acas, the Employment Rights Act 2025 received Royal Assent and its provisions will be rolled out in stages through 2026 and 2027, creating a sequence of duties and timelines that firms need to assimilate now.

Broad Workplace Impact

The legal overhaul will touch wide areas of workplace practice: changes include earlier protection from unfair dismissal, reforms to flexible working, extensions to tribunal time limits and heightened duties on harassment prevention, among other measures that will alter employers’ responsibilities. Acas has signalled it will publish guidance and codes to support implementation.

The Risk of Waiting

For many organisations, the practical gap between announcement and enforcement is where risk grows. Employers who wait for commencement dates rather than updating day-to-day processes risk inconsistent decision-making by line managers and reactive, last-minute fixes when statutory changes bite. Acas has emphasised both the scale of the reforms and the need for employers and workers to prepare collaboratively.

Key Changes Coming in October 2026

Some of the Act’s most consequential provisions will start in October 2026, including an extended six-month window for most tribunal claims and a strengthened duty requiring employers to take “all reasonable steps” to prevent sexual harassment, plus potential liability for harassment by third parties. Legal advisers warn these duties will be onerous and likely to require substantive policy, training and process updates.

Stronger Expectations Around Flexible Working

Flexible working is another area where statutory expectations are shifting. Employers will need to treat requests with greater formality, consult with employees and reach timely, reasoned decisions; Acas guidance already sets out operational standards that go beyond informal practice, signalling that casual or inconsistent handling will be risky.

Absence Management as a Strategic Issue

Absence has moved from administrative record-keeping to a strategic people issue. Survey and sector data show sickness absence has risen in recent years, and both employers and workers view changes to statutory sick pay as among the most impactful measures in the new Act; Acas polling highlights sick pay and unfair dismissal protections as top concerns. Employers should therefore treat absence management as an early-warning system for workload, wellbeing and managerial issues.

The Role of Manager Training

Improving manager capability is central to reducing legal and cultural risk. Policies alone will not prevent disputed outcomes if managers lack training to hold fair, consistent conversations about performance, absence, flexible working and conduct. Legal commentary notes that the extended obligations under the Act increase the expectation that employers demonstrate meaningful, documented steps were taken.

Preparing Ahead of Implementation

There is a clear advantage to acting ahead of statutory commencement. Organisations that refresh policies, embed clear processes, invest in manager training and build harassment-prevention systems now will be better placed to meet the tougher statutory tests and avoid rushed compliance exercises. 

“This is a once-in-a-generation change to employment law in Britain and an opportunity for employers and workers to work together to bring all workplace relations up to the standard of current best practice, and help businesses thrive and improve working lives.”

Acas Chief Executive.

Employment law changes can rapidly and leave you out of compliance. This years Reward and Payroll Summit makes sure you’re informed! Click here to check out Jeni Morris’ session on What’s Changed & What’s Coming.