Employment law reform: what ECA Members need to prepare for

[edit] Introduction

Employment law is changing quickly, and electrical contractors need to understand the practical implications to ensure their businesses are prepared.

Since April 2026, employers have already had to respond to changes including day-one Statutory Sick Pay, increased family friendly rights, stronger enforcement through the new Fair Work Agency and increased penalties for non-compliance. Further reforms are expected from October 2026, with more changes due throughout 2027.

For ECA Members, whilst many of the reforms relate to employment law, their impact will be felt across the whole business, from workforce planning and productivity to project delivery and commercial risk. This will be particularly impactful in a sector built around mobile teams, project-based work, dispersed sites and fluctuating labour demand.

[edit] What changes in October 2026?

Key reforms expected from October include stronger duties to prevent sexual harassment, including third-party harassment. For contractors, this is particularly relevant where employees work on customer sites, major projects and multi-contractor environments.

A policy alone will not be enough. Members should be able to show practical preventative steps, including clear behavioural standards, effective reporting routes, manager training and prompt investigation procedures.

Trade union rights are also expected to strengthen, including a new requirement to provide workers with information about their right to join a trade union. In addition, the Government has proposed new trade union access rights. Draft guidance consulted on during 2026 envisages trade unions being able to request physical and digital access to workplaces for purposes such as meeting, representing, recruiting and organising workers, with employers expected to engage in a formal process for considering and responding to access requests. Employers should monitor developments closely and ensure managers understand how to respond appropriately if access requests are made

On 1st October employment tribunal time limits increase from three months to six months for most claims. This makes strong record-keeping even more important, especially around disciplinary decisions, grievances, performance concerns, contract changes and consultation processes.

[edit] What is expected in 2027?

One of the biggest changes will be the reduction of the qualifying period for unfair dismissal protection from two years to six months. Employers relying on informal probation arrangements should now move to more structured induction, review and performance processes.

The Government is also proposing to significantly restrict the use of dismissal and re-engagement on less favourable terms, commonly known as “fire and rehire”. Whilst details are still developing, employers should be considering how future changes may affect their ability to make contractual changes relating to working hours, shift patterns, travel requirements, standby and call-out arrangements, allowances and other terms and conditions.

There are also planned reforms around guaranteed hours, short notice shift changes and flexible working. Members using agency labour, short-term resource models or flexible working patterns should monitor guidance carefully, as these reforms could affect workforce planning and labour flexibility.

[edit] What should Members do now?

Whilst some of the detail is still subject to further regulations and guidance, now is a good time for employers to review their existing arrangements and identify any areas that may be affected by the forthcoming reforms.

Members may wish to review their contracts, policies and management practices, particularly in relation to probation, performance management, harassment procedures, flexible working arrangements and the use of agency or temporary labour. Businesses should also ensure managers are aware of the direction of travel and consider where future changes may require updates to existing processes.

Taking stock now will make it easier to plan and implement any necessary changes once the final detail is confirmed.

[edit] Further support

ECA Members can access guidance, templates and updates through the ECA Member Support Area and via the Employee Relations Helpline. If you have not already done so, I would encourage you to review the support available and begin preparing your business for the next phase of employment law reform.

This article originally appeared on the ECA website on 22 September 2026. It was written by Catherine Watt, Director of Employment and Skills, ECA.

--ECA

[edit] Related articles on Designing Buildings

• CLC Maintaining Employment in Construction report published.
• ECA articles.
• Employment Rights Act 2025.
• Employment Rights Bill; making work pay.
• Court of appeal ruling on holiday pay and employment status.
• Guidance notes to prepare for April Employment Rights Act changes.
• Q2 2021 trends indicate higher costs, lower employment.