REC Insight Pass: Your June legal need to know

Each month, your REC Insight Pass brings you the essential legal updates that matter most to recruiters. Summarised and simplified. From regulatory changes and case law to compliance tips and industry guidance, cut through the complexity so you can focus on running your business with confidence.

Employment law is entering one of its busiest periods in years. While many of the Employment Rights Act 2025 changes won't take effect until late 2026 and 2027, businesses who prepare now will be in a much stronger position when the new rules arrive.

Here’s your comprehensive roundup.

Unfair dismissal protection applicable sooner

From January 2027, employees will only need six months' service, rather than two years, before they can bring an ordinary unfair dismissal claim. At the same time, the current cap on unfair dismissal compensation will be removed.

What does this mean?

• For recruiters and employers, this means probation processes, performance management and record keeping will become even more important. Businesses will have less time to identify issues and ensure any dismissal process is fair and well documented.

Stronger duties to prevent sexual harassment

From October 2026, employers must take “all reasonable steps” to prevent workplace sexual harassment, rather than simply "reasonable steps". Employers may also be liable for harassment by third parties, such as customers or clients, if sufficient preventative measures are not in place.

What does this mean?

• This raises the bar considerably. Regular training, robust reporting procedures, clear policies and proactive risk assessments are important steps to consider.

Greater employee involvement in tipping policies

Businesses operating tipping schemes will also see new responsibilities from October 2026. Employers will need to consult workers before introducing or updating a tipping policy, review it at least every three years and share an anonymised summary of employee feedback.

What does this mean?

• For hospitality employers, transparency and employee engagement will become just as important as ensuring tips are distributed fairly.

More time to bring employment tribunal claims

Most Employment Tribunal claims currently have a three-month time limit. From October 2026, this will double to six months for the majority of claims.

What does this mean?

• Longer claim windows mean employers will need to retain documentation for longer and ensure employment decisions are well evidenced, as disputes may arise months after an issue first occurred.

New protections for seafarers

The Act also introduces a Mandatory Seafarers' Charter, expected from December 2026. Building on existing legislation, it extends protections beyond pay to include working conditions, health and safety, rest breaks, fatigue management and training.

What does this mean?

• While this change will mainly affect maritime operators, it demonstrates the government's wider focus on improving employment standards across different sectors.

Guaranteed hours are still to come

One of the most anticipated reforms, Guaranteed Hours provisions for zero-hours workers, is expected in 2027, although the detail is still being developed through consultation.

What does this mean?

• Recruiters who place temporary, flexible or contingent workers should keep a close eye on developments, as these changes could significantly affect workforce planning and assignment models.

Why this matters for recruiters

Although many of these reforms are still over the horizon, businesses should consider updating their polices and procedures as soon as possible. Recruiters are increasingly expected to advise clients on employment risk as well as talent acquisition. Understanding what's changing allows agencies to have informed conversations, review their own compliance processes and help clients prepare before the deadlines arrive. Those who stay ahead of the legislation have an opportunity to strengthen relationships, build trust and position themselves as true strategic partners. If you are planning to bring these updates to your clients, the REC is here to help.