October 2026: New protections and duties for employers under the Employment Rights Bill
11th Aug 2025
Author: Mohammed Balal
What changes are coming in October 2026 under the Employment Rights Bill?
October 2026 will introduce critical reforms including a ban on fire-and-rehire, employer duties to prevent sexual harassment, new tipping laws, and a Fair Pay Agreement body for adult social care.
Following the April 2026 reforms (you can read more about these reforms in this article), the Employment Rights Bill continues its rollout with a major second phase in October 2026. This stage is focused on job security, fairness in pay and treatment, and tackling workplace exploitation.
In this blog, Mohammed Balal explore what employers and employees need to know about the October 2026 updates and how to prepare for them.
➤ Ban on fire-and-rehire practices
The Bill introduces a new legal framework to stop the use of “fire-and-rehire” tactics, where an employer dismisses staff only to offer re-employment on less favourable terms.
Going forward:
- Employers will be prohibited from using fire-and-rehire to force through contractual changes
- Any changes to terms must follow a process of genuine consultation and justification
Why it matters:
This practice has been widely criticised in recent years. The ban signals a move towards stronger protections for employees during negotiations and restructures.
Action for employers:
Ensure contract changes are handled transparently and fairly, with legal advice where needed.
➤ Employer duty to prevent sexual harassment
For the first time, employers will have a legal duty to take all reasonable steps to prevent sexual harassment at work.
This includes:
- Having a clear anti-harassment policy in place
- Delivering regular training to staff and managers
- Providing safe, accessible reporting channels
Why it matters:
This is a shift in responsibility — from reacting to harassment to actively preventing it.
Action for employers:
Now is the time to audit your internal culture, policies, and training programmes.
➤ Stronger tipping laws
New legislation will ensure workers receive 100% of tips and service charges, with no deductions.
Key provisions:
- Employers must pass on all tips fairly and transparently
- Tipping policies must be clearly communicated
- Workers will have a right to challenge non-compliance
Why it matters:
This will particularly affect businesses in hospitality, retail, and services — where tipping is common and often poorly regulated.
Action for employers:
Create or update your tipping policy and ensure payroll systems can handle fair allocation.
➤ Fair Pay Agreement Negotiating Body for adult social care
A new body will be created to oversee fair pay standards in the adult social care sector.
Its role:
- Bring together employers and trade unions to agree minimum pay terms
- Promote fair, consistent wages across the industry
- Address recruitment and retention challenges in the care sector
Why it matters:
This is the first sector-specific Fair Pay Agreement in the UK. It may set a precedent for other industries in the future.
Action for employers in care:
Engage with sector bodies and prepare for collective pay standards.
➤ Expanded trade union rights
Workers will benefit from greater freedom to:
- Join trade unions
- Participate in union activities without retaliation
- Seek representation in disputes
Unions will also gain enhanced collective bargaining rights.
Why it matters:
This strengthens employee voice in the workplace and reflects a wider move towards inclusive negotiation.
Action for employers:
Review your trade union and employee engagement policies, especially in unionised environments.
What should employers do now?
- Update internal policies on tipping, harassment, and contractual changes
- Audit workplace culture and identify risk areas around harassment or retaliation
- Educate managers on the new employer duties
- Review sector-specific pay guidance, particularly in care or hospitality
- Start planning now for policy updates ahead of October 2026
How Butcher & Barlow can support you
We understand that legal reforms can feel overwhelming, especially when they affect long-standing practices. Our Employment Law Team is here to provide practical, tailored advice to help your organisation stay compliant and confident.
Whether you need support reviewing contracts, updating harassment procedures, or navigating trade union engagement, we are just a phone call or email away.
Speak to our team today to ensure your business is ready for October 2026. Mohammed can be contacted on 0161 764 4062 or via email at mbalal@butcher-barlow.co.uk
If you missed our previous articles, they are available through the links below:
A new era for workers’ rights – an introduction to the Employment Rights Bill: https://www.butcher-barlow.co.uk/news/employment-law-hr/introduction-to-the-employment-rights-bill-butcher-barlow/
What is changing first? Immediate reforms under the Employment Rights Bill: https://www.butcher-barlow.co.uk/news/employment-law-hr/what-changes-first-under-the-employment-rights-bill-butcher-barlow/
What is changing in April 2026 under the Employment Rights Bill?: https://www.butcher-barlow.co.uk/news/employment-law-hr/employment-rights-bill-april-2026-changes-explained-butcher-barlow/
Mohammed Balal
The information in this article was correct at the time of publication. The information is for general guidance only. Laws and regulations may change, and the applicability of legal principles can vary based on individual circumstances. Therefore, this content should not be construed as legal advice. We recommend that you consult with a qualified legal professional to obtain advice tailored to your specific situation. For personalised guidance, please contact us directly.