Significant changes under the Employment Rights Act 2025 are now coming into force, with major implications for how employers handle complaints, probation and early dismissals. Two reforms in particular demand immediate HR attention.
- 6 April 2026 – Sexual harassment is now expressly protected as whistleblowing
- 1 January 2027 – Unfair dismissal qualifying period reduces to six months with the compensation cap being removed
Sexual Harassment is Now Protected as Whistleblowing
From 6 April 2026, disclosures about sexual harassment are explicitly recognised as ‘protected disclosures’ under the whistleblowing legislation. Previously, a worker who reported sexual harassment in the workplace was primarily protected through the ‘victimisation’ provisions of the Equality Act 2010. Whilst the Employment Rights Act 1996 (as amended by PIDA 1998) already covered disclosures about breaches of a legal obligation (which could arguably encompass sexual harassment), the addition of sexual harassment as an express qualifying disclosure category removes any ambiguity and materially strengthens the position of individuals making these reports.
What is the impact of the change?
- Now recognised ‘whistleblowing’ complaint. Therefore, employees raising sexual harassment concerns are protected from detriment and dismissal, regardless of length of service.
- Any dismissal linked to such a disclosure will be automatically unfair.
- Non disclosure agreements (NDA’s) and confidentiality clauses cannot prevent these disclosures.
Key risk for employers
With the changes in place, most exposure will typically arise not from policy failures but from manager reactions to receiving complaints. The whistleblowing protections apply even if the complaints are not labelled as ‘whistleblowing complaint’.
Informal handling of sexual harassment complaints, defensive responses, or a poor separation between managing complaints and any subsequent disciplinary action will all create risks of claims.
What employers should be doing now
- Update policies. Ensure whistleblowing, grievance and dignity-at-work policies clearly reference sexual harassment and align in practice.
- Train managers urgently. Managers need clarity on what constitutes whistleblowing, how to respond to harassment disclosures, and when not to act.
Unfair Dismissal Protection Will Apply Much Earlier
From 1 January 2027:
- The qualifying period for unfair dismissal claims reduces from the current two years to six months.
- At the same time, the current cap on unfair dismissal compensation is being removed.
- Employees with six months’ service may request written reasons for dismissal.
What is the impact of the change?
Employers will have far less time to identify, manage and document underperformance before full unfair dismissal rights apply, significantly increasing financial and litigation risk.
Key risk for employers
Employers and HR teams need to act swiftly with new underperforming staff. It will no longer be safe to give new staff a long settling in period before assessing their performance or fit within the company.
What employers should be doing now
- Rethink probation processes. Performance concerns must be identified, documented and addressed well before the six-month point.
- Strengthen documentation. Clear records, well-defined roles, early performance expectations and strict separation between complaints and disciplinary decisions are now essential.
Final Thought
These changes represent a cultural shift, not just a legal one. Earlier unfair dismissal rights and stronger whistleblowing protection mean employers must rely on good process, early intervention and confident, well-trained managers. For HR teams, this is now a business-critical capability.
To discuss how the Employment Rights Act 2025 impacts your business, please contact our Employment Team.
