Longer tribunal claim periods and stronger rules on harassment and trade union access will require retailers to review record-keeping, frontline safeguards and manager training.
Retailers operating in England, Scotland and Wales face a new employment law compliance deadline in October, when the next provisions of the Employment Rights Act 2025 take effect.
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The measures do not apply to Northern Ireland, which has its own employment law framework.
The reforms will extend the time available for bringing most employment tribunal claims from three months to six months. They will also strengthen employers’ responsibilities for preventing sexual harassment and introduce new rights covering trade union access to workplaces.
The changes are particularly relevant to retailers because the sector employs large numbers of customer-facing, part-time and shift-based workers, often across extensive store networks.
The British Independent Retailers Association (Bira) has highlighted guidance produced by employment law and HR specialist WorkNest to help businesses prepare. However, the legal changes apply across Great Britain, including to retailers that do not currently recognise a trade union.
The government has said future implementation dates remain subject to parliamentary processes. The principal October measures are currently scheduled for 1 and 30 October.
Tribunal claim period doubles
From 1 October, the time limit for bringing most employment tribunal claims will increase from three months to six months.
The change will generally apply to claims arising from problems at work on or after 1 October. For breach-of-contract claims in Scotland, the new six-month period will apply to contracts terminated on or after 9 November.
The longer period gives workers more time to consider legal action. For employers, it could also mean that potential disputes remain live for longer.
Retailers should therefore review how they retain records relating to disciplinary proceedings, grievances, performance management, dismissals and workplace complaints.
Store managers should document significant decisions and conversations consistently, particularly where responsibility is distributed across multiple locations.
Record retention should remain proportionate and comply with data-protection requirements.
Trade unions gain new access rights
A broader package of trade union reforms is scheduled to take effect on 30 October.
Employers will have a new duty to inform workers of their right to join a trade union. Independent trade unions will also gain stronger statutory rights to access workplaces and communicate with workers.
Access can involve physical entry, communication with workers without physical entry, or both, within the statutory framework. The legislation requires employers to take reasonable steps to facilitate access, while access must not unreasonably interfere with the employer’s business.
The October changes also cover trade union recognition and derecognition procedures, facilities for union representatives and protection against detrimental treatment connected with industrial action.
These measures will apply beyond businesses that already recognise a union.
Retailers should establish procedures for handling access requests and ensure store, regional and HR managers understand how to respond to lawful trade union activity.
Businesses with complex corporate structures should also be clear about which legal entity employs different groups of workers and who is authorised to respond to union requests.
Customer harassment moves up the agenda
The October reforms will also raise the standard expected of employers in preventing workplace harassment.
From 30 October, employers must take “all reasonable steps” to prevent sexual harassment. This strengthens the existing requirement to take reasonable steps.
The law will also introduce liability for harassment by third parties, such as customers or clients, unless the employer has taken all reasonable steps to prevent it. Acas defines a third party as someone a worker comes into contact with through work who does not work for the employer.
The change has clear implications for retailers. Employees in shops, contact centres, warehouses and delivery operations regularly interact with customers, contractors and other members of the public.
Compliance is likely to require more than an updated employee handbook. Retailers should consider:
- assessing harassment risks by role and location;
- establishing procedures for dealing with abusive customers;
- training frontline employees and store managers;
- providing clear and accessible reporting channels;
- recording incidents and the action taken in response; and
- reviewing security, lone-working and escalation arrangements.
Policies should explain what employees and managers can do when a customer behaves inappropriately, including when service can be refused and when security or police assistance may be appropriate.
Businesses should also retain evidence that preventive measures have been implemented and reviewed. A written policy alone may not demonstrate that the required steps have been taken.
Earlier reforms also require attention
The October measures are one stage in a wider programme of UK employment law reform.
Several changes have already taken effect during 2026. From 6 April, Paternity Leave and Unpaid Parental Leave became day-one rights. Statutory Sick Pay was also extended by removing the lower earnings limit and waiting period. The maximum protective award for failing to comply with collective redundancy consultation requirements increased from 90 to 180 days’ pay.
Workers who make qualifying whistleblowing disclosures about sexual harassment also gained stronger protection from detriment and unfair dismissal from 6 April.
The Fair Work Agency began operating on 7 April. It brings together enforcement functions covering areas including the National Minimum Wage, employment agencies and serious labour exploitation, with responsibility for additional employment rights expected to expand over time.
Employers must also keep adequate records of annual leave and holiday pay for at least six years from the date the records were made.
Retailers should ensure these earlier reforms have been reflected in payroll systems, employment policies and management procedures rather than treating the October changes as a standalone compliance exercise.
Further changes coming in 2027
More significant employment law changes are scheduled for 1 January 2027.
The qualifying period for ordinary unfair-dismissal protection will fall from two years to six months. The qualifying period for an employee’s right to request written reasons for dismissal will also fall to six months.
The existing cap on compensatory awards in unfair-dismissal cases will be removed from the same date.
Stronger restrictions on dismissal and re-engagement, commonly known as “fire and rehire”, are also planned as part of the wider reform programme. The government has not yet finalised every implementation detail for the remaining measures.
Other reforms expected during 2027 concern guaranteed hours, shift notices, flexible working, bereavement leave, maternity protection and collective redundancy consultation. Timing and detailed requirements for some measures remain subject to consultation and parliamentary processes.
For retailers, the immediate priority is to convert the October requirements into practical procedures that can be applied consistently across stores, warehouses and other operations.
Policies alone will provide limited protection if frontline managers have not been trained, records are incomplete or a retailer cannot demonstrate the steps it has taken to prevent harassment and respond lawfully to trade union activity.
