HR law is changing. Running a business is busy. HR tasks often fall to the bottom of the list, until something goes wrong.
But 2026 is shaping up to be a year of important employment law changes in the UK. Employers who prepare early will avoid risk, protect their teams, and save money in the long run.
Here are the key areas every small and medium-sized business should be reviewing now.
Probation Periods – Are Yours Clear and Contractual?
Probation periods are not set by law, but they must be written properly into contracts. A vague clause can leave employers exposed if things don’t work out.
A strong probation clause should include:
- Length of probation (typically 3–6 months)
- Right to extend
- Notice period during probation
- Review meetings and feedback process
- Clarification that full disciplinary procedures may not apply
A well-written probation period gives flexibility while still being fair and transparent.
Day-One Employment Rights Are Expanding
Employees already have important rights from their first day of employment, including:
- Holiday entitlement
- Protection from discrimination
- Statutory sick pay eligibility (subject to earnings)
- National Minimum Wage
Upcoming reforms are expected to strengthen early employment protections, which means documentation and onboarding processes need to be watertight.
Contracts and Policies Need a Health Check
Many businesses are still using contracts drafted years ago. Employment law evolves quickly, and outdated wording can create unnecessary risk.
Key documents to review:
- Employment contracts
- Sickness absence policy
- Disciplinary and grievance procedures
- Flexible working policies
- Redundancy procedures
- Holiday calculation wording
Even small wording updates can significantly reduce tribunal exposure.
Absence Management – Supportive but Structured
Managing sickness absence is a balance between empathy and business continuity.
A good system includes:
- Clear reporting procedures
- Return-to-work conversations
- Reasonable adjustments where appropriate
- Consistent triggers for review
- Documentation
Heavy-handed approaches damage morale, but lack of structure creates inconsistency and legal risk.
Pay, Notice Periods and Holiday Calculations
Common areas where businesses unintentionally make mistakes include:
- Holiday entitlement for part-time or irregular hours
- Notice periods that don’t match statutory rules
- Equated pay or term-time calculations
- Changes to pay frequency or payroll cycles
Getting these right protects both employer and employee and avoids disputes later.
Why Proactive HR Saves Money
Many employers only seek HR advice once a problem has already escalated.
Proactive HR support is usually far less expensive than defending a tribunal claim or managing employee turnover caused by poor processes.
A short contract review or policy update now can prevent significant costs later.
Final Thought
HR is not just about compliance, it is about creating clarity, fairness and confidence within your workforce.
With legislative changes on the horizon, now is the perfect time to check whether your documentation, processes and communication are aligned with current best practice.
A small investment in HR today can prevent major disruption tomorrow.
