The summer holidays are almost over, the children are heading back to school, and for many small businesses it’s time to get back into the rhythm of normal working life.

Unfortunately, while you’re focusing on clients, sales and growing your business, the Employment Rights Act 2025 continues to introduce significant changes that employers need to prepare for.

Here are the key HR changes coming over the next few months—and, more importantly, what they mean for your business.

New unfair dismissal rules – preparation starts now

One of the biggest changes is the reduction in the qualifying period for bringing an ordinary unfair dismissal claim to six months.

This means employees joining your business from July will quickly build up the service needed to bring a claim once the new rules take effect.

What should small businesses do now?

• Make sure probation periods are actively managed.
• Hold regular probation review meetings rather than leaving them until the end.
• Document performance concerns as they arise.
• Keep clear records of meetings, objectives and support offered to employees.

A well-managed probation process could become one of the most important HR protections for small businesses.

Fire and rehire becomes much more difficult from 1 October

From 1 October, changing employees’ terms and conditions through “fire and rehire” will become virtually impossible in most situations.

If you’re considering changes to contracts, working hours, pay structures or other employment terms, now is the time to review them and take advice before the new restrictions come into force.

Don’t leave important contractual changes until the last minute.

Employment contracts will need updating

Also from 1 October, employment contracts must include an explicit statement informing employees of their right to join a trade union.

The Government is expected to provide the required wording, so employers should be ready to update contracts as soon as that guidance is released.

If you’re issuing new contracts or reviewing existing ones, this should already be on your HR checklist.

Sexual harassment: policies alone won’t be enough

From 1 October, employers must take all reasonable steps to prevent sexual harassment in the workplace.

For many businesses, simply having an up-to-date policy will no longer be sufficient.

You should be able to demonstrate that you’ve taken practical steps to protect employees, including:

• Regular staff training.
• Clear reporting procedures.
• Managers understanding how to deal with complaints.
• Reviewing workplace risks and taking preventative action.

Good documentation and evidence of training could be invaluable if your business ever has to defend a claim.

Third-party harassment also becomes an employer responsibility

The new legislation will also require employers to take reasonable steps to prevent harassment of employees by third parties.

That could include customers, clients, suppliers or visitors.

Small businesses should consider where employees regularly interact with the public and whether appropriate procedures are in place to deal with unacceptable behaviour.

More time for employees to bring tribunal claims

From October, tribunal time limits for almost all employment claims will increase from three months to six months after the incident.

This makes accurate record keeping even more important.

If something happens in your workplace that could later result in a claim, make sure you retain:

• Meeting notes.
• Investigation records.
• Emails and correspondence.
• Performance documentation.
• Grievance and disciplinary records.

Contemporaneous records are often far more valuable than trying to recreate events months later.

Running a business is hard enough

Keeping up with changing employment legislation while running a successful business can feel like navigating a minefield.

You don’t need to become an HR expert—but you do need to make sure your business is prepared.

Newman HR can provide practical HR support and guidance to help your business navigate these changes with confidence.

For an initial free 30-minute consultation, get in touch today:

Website: https://www.ukemploymentlawadvice.co.uk/contact

Telephone: 020 8079 3043