October 2026 Employment Law Changes: What SMEs Need to Know Now
Employment Law Changes
For many smaller businesses, without a HR department keeping up with employment law changes is just one task on a very long to-do list. SMEs often rely on one person juggling HR alongside finance, operations or other responsibilities, so it’s easy for important deadlines to slip by.
One key change coming into effect on 1 October 2026 raises the bar for employers when it comes to preventing workplace harassment. The legal duty will move from taking “reasonable steps” to taking “all reasonable steps” to prevent harassment, including sexual harassment. Employers will also have a new duty to take reasonable steps to prevent harassment of employees by third parties, such as customers, clients, contractors and visitors.
One of the challenges is that there isn’t a definitive checklist of what “all reasonable steps” looks like. What is considered reasonable in a large hotel chain for example, may not be the same in local restaurants or in a professional services company.
Where should SMEs start?
A practical first step is to carry out a workplace harassment risk assessment. Think about where your employees may be more vulnerable, such as:
- Visiting clients’ homes or premises alone.
- Working at customer or contractor sites.
- Attending work-related events, especially social events where alcohol is available.
- Interacting face to face with members of the public without colleagues nearby.
Understanding where the risks exist in the first instance makes it much easier to put appropriate measures in place. Alongside a risk assessment, employers should review whether they have:
- A clear and up-to-date anti-harassment policy.
- Straightforward reporting procedures that employees understand.
- Training for employees and managers that reflects the realities of their workplace.
- Regular conversations with staff about workplace risks and how concerns can be raised.
- Processes to monitor whether these measures remain effective.
It’s also worth reviewing contracts with suppliers, contractors and venues to include clear expectations that harassment of your employees will not be tolerated. These don’t have to be built from scratch.
At New Dawn we offer a fixed-price HR and legal support packages that cover a handbook, contract review and access to advice as issues arise, at a cost most SMEs can absorb.
Visit HERE to download the Risk Assessment document from our website
While the legislation sets a higher standard, the aim is straightforward: creating safer working environments where employees know they will be supported if something goes wrong.
Taking practical, proportionate steps now will help you be better prepared when the changes come into force in October 2026.
Finally, we are delighted to announce that our next ‘Employment Law Update’ will take place on 19th November and we will be sharing more details shortly.
For more guidance or advice please contact one of our HR business partners at [email protected] or call 01484 680098