The next phase of the Employment Rights Act 2025 takes effect on 30 October 2026. Employers will be required to take all reasonable steps, rather than simply reasonable steps, to prevent sexual harassment of their employees, and will become directly liable for harassment by third parties such as customers, clients and contractors unless those steps can be evidenced. Employment tribunal time limits are also extending from three months to six, and trade unions are gaining wider rights to access workplaces.
For most SME employers, the harassment duty is the practical priority. Having a policy on file is unlikely to be enough on its own. What is expected now is evidence, including a documented risk assessment, recorded manager training, and a clear reporting route, particularly in customer-facing roles.
Business groups have raised concerns about the pace of change. The British Chambers of Commerce has argued the trade union access changes will place particular strain on smaller firms, while the Federation of Small Businesses has called for a staggered rollout and clearer government communication, so businesses are not managing several reforms at once.
If harassment policies and training records have not been reviewed since the existing duty came in during October 2024, this is the point to update them, ahead of a complaint rather than in response to one.