Key employment law updates | October 2026

Welcome to our monthly update, where we highlight key employment law developments and upcoming changes.

Further Employment Rights Act changes - is your business ready for the 30 October 2026 changes?

Further changes are coming into effect at the end of this month, following the changes introduced earlier this year in April and early October (please see last month's bulletin for the 1 October 2026 changes).

Trade union access rights explored

As we've reported previously, independent unions will have a right from 30 October 2026 to request access (both physical and digital) to a workplace. This right of access allows union officials to visit and communicate with workers and applies to all employers with 21 or more workers. This right exists regardless of whether or not the union is recognised by the employer or has any level of membership within the workforce.

However, trade unions and employers that are already operating a voluntary access arrangement that is satisfactory to both parties should continue using this arrangement, rather than seeking to formalise it through the new statutory process.

Once a formal access request is made, the employer then has 15 working days to respond. The response needs to confirm:

• the person they should contact;
• whether it agrees or disagrees with the request (either in full or in part); and
• the reasons why.

Template forms are available in the Code of Practice.

Employers need to be prepared for the short timescales for responding to and negotiating access arrangements, as there are substantial financial penalties for non-compliance.

Practical steps should be taken to ensure that such requests are picked up as soon as they are received. The Code outlines:

"The trade union should direct their request to an email address provided by the employer, which the employer should make every effort to provide. Where the employer does not provide an email address, the trade union may use another email address made publicly available by the employer for general communications with the employer, or other means. Employers are encouraged to make these contact details available on their websites where possible."

The Code has helpfully summarised the relevant time periods.

If the employer already recognises another union, or has an access agreement with another union, this is not a bar to a second union gaining access. However, the regulations expressly state that it would be reasonable for the CAC to refuse access in these circumstances. This only applies where there is a real overlap (meaning at least one worker falls within the scope of both the existing arrangement and the new access request).

Existing recognition or access agreements that only cover certain populations or sites will not prevent access requests covering other populations or sites.

If, however, a recognition ballot is already happening, it will be reasonable for the CAC to refuse an access request from another union, as long as at least one worker covered by the access request is also within the proposed bargaining unit.

There's a lot to consider, so keep in mind the following practical tips:

• identify who will manage any access requests;
• review workplace and digital communication channels where requests are likely to be made;
• put in place an internal process to respond within the statutory timescales;
• consider any operational concerns, confidentiality issues or health and safety concerns relevant to any physical access requests; and
• consider training HR and managers on the new framework (with Board awareness) to ensure compliance with the statutory framework.

Postponed: Duty to inform workers of their right to join a trade union

The duty to inform workers of their right to join a trade union was previously scheduled to take effect on 30 October 2026, however the Government has announced that this has been pushed back to January 2027.

Sexual harassment and Third-Party harassment

The duty to prevent sexual harassment will increase from taking “reasonable steps” to a requirement to take “all reasonable steps”.

Incoming measures will strengthen employers' duties to prevent both sexual harassment and harassment by third parties, such as clients, customers and contractors.

Employers will be expected to demonstrate a proactive and documented approach, including tailored risk assessments, effective policies, training and practical safeguards.

Liability can arise from a single incident, and compensation awards remain uncapped. Regular policy reviews, manager training and contractual protections with key third parties will be essential to mitigate risk.

How we can help you prepare for the ERA changes

We can support businesses to understand and prepare for the various changes coming into effect. Even if you've taken no actions to date, there's still time to prepare. Get in touch with a member of the team to discuss the options available in more detail.

We also offer an innovative "21st Century Manager Programme" which is a four-day management development programme delivered over a 3-month period, designed to equip managers with essential skills, knowledge, and behaviours to effectively reduce risk, increase engagement and motivation, manage performance and improve workplace culture (two-day option also available). For further information, please get in touch with Joanne Boyle.

Government confirms it intends to restrict non-compete clauses in employment contracts

On 9 October 2026, Prime Minister Andy Burnham confirmed that he intends to clamp down on the use of non-compete clauses and stated that the use of these practices by companies had stifled innovation by holding back the economy.

At present, no legislative proposals have been published and no changes have taken immediate effect. However, the announcement follows a recent letter from a number of technology start-up founders who argued that non-compete clauses, lengthy notice periods and garden leave arrangements can hamper economic growth.

The announcement comes ahead of the Chancellor's Budget on 28 October, which may provide further detail on the scope of any potential changes.

This is not the first time reform of non-compete clauses has been considered:

• In May 2016, the Government consulted on the impact of restrictive covenants on start-ups and labour mobility. Following the consultation, it concluded in 2018 that the existing legal framework was operating effectively and that no legislative change was required.
• In December 2020, the Government launched a further consultation proposing a statutory three-month cap on non-compete clauses, together with mandatory compensation during the restricted period. In 2023, it announced its intention to proceed with a three-month cap, whilst abandoning the proposals for mandatory compensation and a wider prohibition on non-compete clauses. However, the legislation was not introduced before the 2024 General Election.
• In November 2025, the Government published a further working paper seeking views on potential reforms, although no changes followed.

Given the number of consultations and policy reviews in this area over the last decade, employers should be cautious about assuming that reform is imminent. Equally, the latest announcement indicates that non-compete clauses remain firmly on the Government's agenda and further proposals may emerge in due course.

We frequently see employees refer to media reports about potential reform when challenging the enforceability of existing restrictions. However, consultations and policy announcements do not change the current legal position. Unless and until the law changes, the enforceability of restrictive covenants will continue to be assessed under the existing legal principles.

Employers should therefore continue to ensure that post-termination restrictions are carefully drafted, no wider than reasonably necessary to protect legitimate business interests, and tailored to the employee's role and seniority. If you would like to review your restrictive covenant provisions or discuss appropriate protections for your business, please get in touch.

Government Consultation on Employment Status Reform

On 14 October 2026, the Government launched a consultation entitled "Make Work Pay: Employment Status Reform and Protections for the Self-Employed". The consultation closes on 8 January 2027.

By way of summary, employment law recognises three main categories of status:

1. Employees
2. Workers
3. Self-employed independent contractors

An employee has the most rights but also has the most responsibilities and obligations towards their employer. A worker who is not an employee has fewer rights and obligations than an employee. A self-employed individual has the least protection but also has fewer personal obligations and has significant flexibility in their work and typically operates as part of a business or professional undertaking.

The existing framework can often be difficult to understand and determine, and so the Government is seeking views on specific reform to try and tackle bogus self-employment and substitution issues. Despite prior indications that the Government was looking at moving towards a single worker status, the consultation has a much narrower focus. Therefore, rather than a complete overhaul of the existing system, the consultation focuses on targeted reform.

The consultation is now seeking views on the following proposals:

• retaining the existing framework of three categories for employment law purposes;
• reforming the worker test, by placing less emphasis on personal service and increasing the importance of control exercised by the engager;
• introducing a presumption that an individual is a worker, with the burden shifting to the employer or engager to show that the individual is genuinely self-employed;
• stronger enforcement powers and penalties for repeated worker-status misclassification;
• extending certain protections to self-employed individuals, including a right to receive a written statement of key terms, protection from blacklisting, and enhanced health and safety protections; and
• developing a new online assessment tool for employers and individuals to check likely employment status.

In summary, this consultation on employment status reform proposes significant changes aimed at tackling "bogus self-employment". The current consultation indicates a clear policy direction towards making it easier for individuals to establish worker status and more difficult for businesses to rely on self-employed classifications where significant control is exercised.

The consultation focuses on employment rights and does not address tax status. The two regimes do not fully align. Businesses therefore need to consider separately whether Off-Payroll Working Rules need to be applied to those providing services to them from a tax perspective.

The scope of the consultation is relatively narrow and there is no movement towards single worker status. The points raised are likely to have a limited effect on organisations that primarily rely on employees. However, even though the consultation raises only a limited number of proposals, their implications are likely to be more significant for organisations with large numbers of consultants or self-employed workers. If the proposals are subsequently brought into effect, then in addition to an increased administrative burden, the combined effect of a reversal of the burden of proof and the de-emphasis of the personal service element of the limb (b) worker test could lead to an increasing number of individuals being able to assert an entitlement to limb (b) worker statutory rights.

If you would like to discuss this topic in further detail, please do not hesitate to contact us.