October 2026 brings two distinct updates to workplace harassment laws under the Employment Rights Act 2025.
The first update raises the legal standard for preventing sexual harassment from taking ‘reasonable steps to taking ‘all reasonable steps’. Relying solely on a written policy will no longer suffice. Employers must demonstrate clear evidence of prevention measures taken before any issue occurs.
The second update makes third-party harassment a standalone legal liability.
Employers become responsible for harassment carried out by clients, customers, or contractors unless clear evidence shows all reasonable steps were taken to prevent it. This applies across all protected characteristics.
A July 2026 poll of 985 HR professionals by VinciWorks revealed that 20% of UK businesses have not provided managers with sufficient training on these rules.
Being compliant with both duties requires six core elements:
- An updated harassment policy covering third-party harassment
- Written acknowledgements proving staff have read the policy
- Documented manager training on handling harassment
- A clear, accessible reporting process for employees
- Written risk assessments for higher-risk roles or environments
- Centralised records ready to produce if challenged
Addressing these compliance gaps ensures full readiness before October. Reach out to discuss arranging a harassment prevention review for your business.
Visa sponsorship obligations: key lessons for employers
An employment tribunal recently awarded a care worker almost £30,000 after his employer, Swan Care Solutions, failed to provide agreed work.
The company sponsored the worker under a skilled worker visa, yet provided no shifts or salary upon his arrival in the UK.
The tribunal ruled that employment commenced once the worker arrived in the UK with a valid visa, making the withholding of work unlawful. The employer’s sponsorship licence was subsequently revoked.
Sponsorship creates immediate legal and contractual obligations from day one. Businesses considering worker sponsorship must ensure roles genuinely exist and hours are fully available before issuing a certificate of sponsorship.
Proposed reforms for zero-hours contracts
The UK government has launched a consultation regarding zero-hours contract reforms under the Employment Rights Act 2025.
Proposals suggest offering qualifying workers guaranteed hours based on a 12-week reference period.
Measures also include reasonable notice for shifts and financial compensation for short-notice cancellations. These changes are expected to take effect in 2027 following the consultation period.
Businesses using flexible staffing models should track these developments closely, particularly regarding qualifying criteria and reference periods.
Rising complexity in UK recruitment and employment
Data from Employment Hero reveals that 56% of UK business leaders find managing staff more complex than 12 months ago.
Full-time employment costs rose by an average of 9.6% over the past year, driven by salary growth and increased National Insurance contributions.
Nearly 20% of small businesses report that new regulations discourage hiring, while two-thirds cite increased operational costs linked to legislative changes. Maintaining clear processes and policies helps prevent management challenges from delaying growth.
Managing AI risks in the workplace
Widespread use of AI tools among staff presents clear operational risks when policies remain missing.
Data protection remains an immediate concern. Entering client details, internal records, or financial data into third-party AI platforms risks sending confidential information outside company control, creating potential UK GDPR breaches.
Quality control creates further risk. AI platforms generate convincing yet incorrect outputs. Unreviewed work sent to clients leaves your business accountable for any errors.
Unclear intellectual property ownership and disciplinary boundaries also require attention. Standard employment contracts rarely clarify rights over AI-generated work or set rules for passing off automated output as original effort.
A basic AI policy provides necessary boundaries:
- Approved platforms and permitted work tasks
- Strict limits on sensitive data entry
- Review requirements before sending output to clients
- Clear guidelines for client-facing work
Our team drafts practical AI policies tailored to your operational needs without restricting useful technology. Reach out to set up your policy.
Employment Law Q&A
What counts as “all reasonable steps” to prevent harassment?
Meeting the standard from October 2026 requires an updated policy covering third-party harassment, signed staff acknowledgements, documented manager training, a clear reporting process, and written risk assessments. Demonstrating proactive evidence remains key. This evidence base also covers third-party harassment duties involving customers, clients, and contractors.
Can an employer change employee working hours without agreement?
Generally, no. Altering contractual hours without agreement risks breach of contract and constructive dismissal claims. Employers must consult staff and state clear business reasons. Incoming rules expected in January 2027 will make dismissals for refusing contract changes automatically unfair in most cases. Always seek advice before changing terms.
Is providing a reference for former employees mandatory?
In most cases, no legal obligation exists to provide a reference in the UK, outside specific regulated sectors. If a reference is provided, it must remain accurate and fair to avoid negligent misstatement claims. Providing a standard factual reference covering job title and dates of employment remains best practice.
