Legal News | 8.09.26
Employment Law Update – September 2026
The Employment Rights Act 2025 is continuing to reshape the employment law landscape. Several important changes have already taken effect, with further reforms expected during the remainder of 2026.
For employers, these developments extend beyond human resources procedures. They affect workplace governance, management training, customer-facing operations, industrial relations and, particularly in the hospitality sector, the way tips are allocated, and tipping policies are developed.
This article considers four principal areas: sexual harassment and whistleblowing protection, harassment by third parties, trade union rights and industrial action, and proposed consultation requirements for tipping policies.
Sexual Harassment and Whistleblowing Protection
Since 6 April 2026, sexual harassment has expressly been included as wrongdoing that may form the subject of a qualifying disclosure under section 43B of the Employment Rights Act 1996, as amended by section 23 of the Employment Rights Act 2025.
A report of sexual harassment will not automatically attract whistleblowing protection. The worker must reasonably believe that the information disclosed tends to show that sexual harassment has occurred, is occurring or is likely to occur, and that the disclosure is in the public interest. The disclosure must also be made through an applicable statutory reporting route to qualify as a protected disclosure.
A protected disclosure may relate to the worker’s own treatment. Whether the public-interest requirement is satisfied will depend on matters such as the seriousness of the conduct, the number of people affected and the identity of the alleged wrongdoer.
Workers who make protected disclosures are protected from detriment. Employees are also protected from automatic unfair dismissal where the protected disclosure is the principal reason for dismissal.
Employers should not treat every sexual-harassment complaint solely as a grievance. A complaint may engage grievance, anti-harassment and whistleblowing procedures simultaneously. Managers should be trained to identify potential protected disclosures, use appropriate reporting and escalation routes, and prevent retaliation against those who raise concerns.
The Strengthened Preventative Duty
From 30 October 2026, employers will be required under the Equality Act 2010 to take “all reasonable steps” to prevent sexual harassment of their employees. This strengthens the existing duty to take reasonable steps.
What amounts to “all reasonable steps” will depend on the organisation’s size, resources, working environment and particular risks. Employers should consider risks arising from customer-facing and lone working, night work, business travel, social events, online communications and contact with third parties.
A written policy alone will not establish compliance. Employers should:
- carry out and regularly review sexual-harassment risk assessments;
- maintain effective anti-harassment, grievance and whistleblowing policies;
- provide accessible reporting and escalation routes;
- deliver practical, regularly refreshed training;
- investigate complaints promptly and impartially;
- take appropriate disciplinary and remedial action; and
- monitor for retaliation or victimisation.
Employers should retain evidence of these measures, including risk assessments, policy reviews, training records and anonymised information about complaints and remedial action. Boards and senior management should oversee compliance and address recurring or systemic risks.
Third-Party Harassment
From October 2026, subject to the applicable commencement regulations, employers will face liability under the Equality Act 2010 for harassment of workers by third parties, such as customers, clients, suppliers, contractors, patients and visitors.
An employer may be liable where a third party harasses a worker in the course of their employment, and the employer has failed to take all reasonable steps to prevent it. Unlike the previous regime, there is no requirement for repeated incidents: a single incident may be sufficient.
Employers should assess the risks arising from third-party contact and adopt proportionate preventive measures. These may include clear standards of conduct, staff training, accessible reporting procedures, authority for managers to intervene and appropriate contractual protections.
Reports and the action taken should be documented. Depending on the circumstances, an appropriate response may include warning or removing the third party, ending the relevant interaction, banning the individual or reporting the matter to the police. Employers should not wait for repeated complaints before acting.
Employment Tribunal Deadlines
From 1 October 2026, the time limit for bringing most Employment Tribunal claims will increase from three months to six months. This will cover claims such as unfair dismissal, discrimination, whistleblowing detriment and unlawful deductions from wages.
The new limit will generally apply where the relevant dismissal, act or omission occurs on or after 1 October 2026. Earlier events will usually remain subject to the existing three-month limit. Transitional cases and complaints involving continuing conduct will require careful assessment.
ACAS Early Conciliation will continue to affect the calculation of time limits. Employers should therefore not assume that a claim is out of time merely because six months have passed.
The longer deadline means potential disputes may remain live for considerably longer. Employers should:
- retain relevant employment records for an appropriate period;
- preserve emails, messages and other evidence promptly;
- document workplace decisions and the reasons for them;
- retain suitable contact information for key witnesses;
- review dispute-reporting and insurer-notification procedures; and
- use ACAS Early Conciliation to explore early resolution.
Document retention must remain necessary, proportionate and consistent with UK data-protection law. Employers should update their retention and litigation risk procedures before the new deadline takes effect.
Trade Union Rights and Industrial Action
A substantial package of trade union reforms came into force on 18 February 2026, simplifying the statutory requirements for industrial action and strengthening protection for participating employees.
The reforms removed the 50% ballot turnout requirement and the additional 40% support threshold for specified important public services. They also simplified the information unions must provide in ballot and industrial-action notices.
Subject to transitional provisions, ballot mandates may remain valid for 12 months rather than six, while the minimum notice of industrial action has been reduced from 14 days to 10 days.
The previous time limit on automatic unfair-dismissal protection has also been removed. Protection may now apply throughout an employee’s participation in protected industrial action, provided the applicable statutory requirements are met. Unions are also no longer required to appoint picketing supervisors, although other legal rules governing picketing continue to apply.
Further reforms are expected in October 2026, including enhanced union access rights and broader protections for union representatives and employees taking protected industrial action.
Employers should update their industrial-relations procedures and business-continuity plans to reflect the shorter notice period, longer ballot mandate and enhanced employee protections.
Tipping Policies and the Hospitality Sector
Further reforms to the statutory tipping regime are expected later in 2026. Since October 2024, qualifying employers have been required to distribute tips fairly and transparently, maintain a written tipping policy and keep prescribed records.
The reforms are expected to require employers to consult workers or their representatives when preparing or revising a tipping policy and to review the policy at least every three years. Employers may also need to provide workers with an anonymised summary of the views expressed during consultation.
The detailed requirements remain subject to the final legislation, commencement arrangements and revised statutory Code of Practice on Fair and Transparent Distribution of Tips.
Hospitality businesses should use this opportunity to review whether their written policies accurately reflect how tips are handled in practice. The policy should explain clearly how qualifying tips, gratuities and service charges are allocated, when payments are made and how any tronc arrangement operates. Allocation decisions should be fair, transparent and supported by appropriate records.
Businesses operating across several sites should also consider whether local practices are consistent with the organisation’s written policy. Differences between venues may require explanation and should not result in arbitrary or opaque treatment of workers.
Although the final requirements remain subject to the completed legislative and Code of Practice arrangements, businesses should begin preparing now. Existing tipping arrangements should be mapped, affected workers and representatives identified, and suitable consultation procedures established.
What Employers Should Do Now
Employers should treat the reforms as a connected workplace-risk exercise and:
- review and update relevant policies, procedures and workplace risk assessments;
- train managers on the new requirements and document that training;
- assess and mitigate harassment risks involving colleagues and third parties, particularly for customer-facing, lone and night workers;
- establish clear standards of customer conduct, reporting procedures and management intervention measures;
- update industrial-relations and business-continuity plans to reflect longer ballot mandates, shorter notice periods and enhanced employee protections;
- review tipping policies and prepare for meaningful consultation with workers or their representatives; and
- prepare for longer Employment Tribunal deadlines by updating document-retention, evidence-preservation, dispute-reporting and insurer-notification procedures.
All policies should reflect workplace practices and be applied fairly, transparently and consistently. Employment records should be retained only where necessary and proportionate, in accordance with UK data-protection law.
Wansbroughs advises both employers and employees on a range of employment law matters. This article should not be relied upon as legal advice. If you would like specific legal advice, or require any assistance, please get in touch on 020 4549 2460 or 01380 733300 | employment@wansbroughs.com
