Written by Heidi Wadsworth | 15th January 2026
If you’re responsible for managing people, you’ll know how the start of a new year lands. It’s a mix of ticking off jobs, picking up employee issues that didn’t quite finish before Christmas, and trying to get plans moving at the same time. It’s busy and often feels like there’s never quite enough time to breathe.
Now add in the phased rollout of the Employment Rights Act starting in April 2026, and it’s fair to say this year feels a bit different. This legislation touches nearly every area of people management – recruitment and dismissal, flexible working and absence, zero‑hours working, family leave and more. The impact for employers is significant, and the preparation required shouldn’t be underestimated.
We’re hearing from our clients that HR teams are stretched, and employee relations cases are becoming not just more frequent but more complex. Line managers are juggling everyday pressures with the need to handle people issues confidently and fairly. And all this is happening while you’re expected to stay on top of compliance, risk and strategic priorities. This is why some organisations are choosing to rethink how they manage their HR function. For some, that means bringing in specialist expertise where it matters most. For others, it looks like an ongoing partnership so in-house teams can stay focused on strategy and culture without getting pulled into operational firefighting.
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Here, we look at the compliance groundwork you need to cover, how to prepare for rising employee relations challenges, the importance of line manager capability and how the right support can make all the difference in 2026.
- Do your HR housekeeping
When rights and responsibilities are changing the way they are, leaving contracts, policies and procedures untouched is a risk no employer should take. Start 2026 by reviewing your contracts, policies and handbooks to make sure they reflect current law and these planned changes under the Employment Rights Act.
Unfair dismissal
One of the biggest changes is the reduction in the qualifying period for unfair dismissal protection from two years to six months. That means recruitment decisions, probation management and early conversations with employees matter much sooner. Managers need to be having frequent, clear, recorded conversations with new starters, and probation reviews need to be meaningful. Getting this right early can stop disputes before they start.
Statutory Sick Pay
Statutory Sick Pay is also changing. SSP is now payable from day one, and the lower earnings limit is being removed. This impacts how much absence costs your business, and you should take this opportunity to review how absence is currently managed and how managers handle conversations about sickness. Clear guidance and consistent application is essential to avoid confusion or disputes.
Zero-hours contracts
For organisations using zero-hours contracts, agency workers or causal staff, you should be aware that these types of workers and employees are getting more protections. They will have rights to guaranteed hours based on their usual patterns, notice of shifts, and compensation if shifts are cancelled at short notice. Reviewing contracts and processes now gives businesses time to plan, rather than reacting under pressure later.
Flexible working
Flexible working has been a day-one right since 2024, yet many policies still haven’t caught up, and we expect further strengthening of the right to request and expect flexible working across 2026 and 2027. Even where policies are up-to-date, managers need guidance. Poorly handled requests or inconsistent decisions are a common cause of grievances, and training managers to apply the policy fairly is essential.
Parental and bereavement leave
Family-friendly leave is also changing in that from April 2026, paternity and parental leave become available from the first day of employment, and bereavement leave is expected to extend beyond parents. Policies need to be simple, clear and practical for managers to apply, and communicated clearly to ensure all employees know their rights and are supported by the organisation in challenging times.
Fire and rehire
Fire and rehire is now firmly positioned as a last resort. Dismissing employees for refusing contractual changes will be automatically unfair unless very specific conditions are met. If your business is planning any restructuring or contract changes, getting advice early can prevent serious problems later.
Extensions to protections from harassment
Employers will have additional duties to take “all reasonable” steps to prevent harassment, and are also responsible for harassment from customers, clients or visitors. Policies should reflect these responsibilities, and managers need to know how to respond if any type of bullying or harassment occurs.
You can find further guidance on the Employment Rights Act 2025 here. This page features the link to a recording of our ERA webinar, where we broke down the Act in detail, explained how the changes will impact your business and what you can do to prepare for the rollout.
Helpful Employment Rights Act 2025 information & resources
- Refresh sexual harassment training
It’s been more than a year since the Worker Protection Act 2024 introduced a duty for employers to prevent sexual harassment. Many businesses likely ran initial training and then moved on, potentially leaving gaps and maybe new starters who have not been trained. Refresher training is essential to keep awareness high, reinforce culture, and demonstrate ongoing compliance. If your business didn’t run training last year, now is the time to do it.
Dignity at Work training equips managers to understand their responsibilities and deal with issues early. We also have a practical checklist to help organisations review their current approach, identify gaps and make improvements.
Download our Dignity at Work Checklist
- Check your records
Good record-keeping is crucial when issues arise, so ask yourself whether employee files are complete, whether you can quickly access contracts, policy acknowledgements, performance notes and correspondence, and whether records are stored securely and in line with GDPR requirements.
We often see gaps that create vulnerability during grievances, tribunals or Data Subject Access Requests (DSARs). Missing performance notes, informal conversations that were never recorded, unsigned policy acknowledgements, incomplete recruitment files – these are all things that can make defending decisions much harder. Fixing documentation now prevents stress, cost and risk later.
- Practice good employee relations
As we have mentioned, employee relations cases are becoming more complex. Employees are more willing to raise formal grievances, and cases often involve multiple issues and multiple people. They can take months to resolve, and getting them wrong can damage morale, trust and your reputation, not just your finances.
DSARs are also on the rise and mishandling them can create legal and administrative headaches.
Good employee relations practice is simple, but essential. Grievances and disciplinary processes should be clear, investigations need to be timely and fair, documentation should be thorough, and decisions should be explained properly.
Sometimes, bringing in external expertise is the safest option, particularly when cases are sensitive, complicated or your internal capacity is limited. We regularly support our clients with grievances, DSARs, disciplinary matters, redundancies and restructuring.
- Invest in training and development
Many people problems start, or could have been prevented, at line manager level. Inconsistent application of policies, avoided performance conversations, and informal issues left unaddressed often turn into formal grievances or tribunal claims.
Plus, some managers are promoted for technical skills rather than people management, yet they’re expected to manage flexible working requests, absence, wellbeing, and compliance – all while doing their “day job.” That’s a lot to expect without proper guidance and support.
Training is essential to support this, as managers need to understand the basics of employment law, be confident having difficult conversations, know how to record issues consistently and fairly, and be clear on when to seek HR support. When managers feel supported, problems are spotted earlier and dealt with more effectively.
Our management training is scenario-based and designed around real situations managers face.
What’s coming in 2026
In addition to compliance, there are a few broader trends we’re watching alongside the Employment Rights Act changes.
As employers think about growth or restructuring against economic pressures, workforce planning remains front of mind. Handling change well, with clarity and fairness, supports morale even when decisions are difficult.
Also, flexible working continues to be something employees expect rather than something they ask for. A clear, fair approach to requests is essential, not a “nice to have.”
We all know how AI is fast becoming part of our everyday lives, and now its influencing recruitment and people processes. AI and automation are changing how people apply for jobs and how work gets done, but we must remember they don’t change the need for human judgement and fairness in decision making. Focusing on strengths of candidates and employees alongside skills will help you hire and retain the right people. It’s also important to train employees how to use this technology ethically and have a policy to refer to.
Last but not least, over the past few years wellbeing and mental health support has shifted from nice‑to‑have to business‑critical. We see that businesses that treat wellbeing as a core part of their people strategy – not just a perk – find they have fewer absence issues and higher overall engagement.
When outsourced HR support makes sense
Sometimes your in-house teams just can’t do it all. Our HR support retainers are useful when businesses have small teams, are growing or restructuring, need specialist support without hiring full-time, or want managers to have quick access to advice. Retainer support gives continuity, specialist guidance, and peace of mind. It covers everything from employee relations cases and documentation reviews to strategic HR planning.
Learn more about our flexible and scalable HR services
To help you with your priorities, we’re offering a complementary 30-minute audit. Fill out the form below to book yours today.
About the author: Heidi Wadsworth, Head of Learning & Development | New Business Lead
Heidi takes a hands-on, pragmatic approach to learning and development and new business , working directly with clients to understand their unique challenges, culture, and environment. She combines her extensive cross sector experience in hospitality, retail, and manufacturing with a practical understanding of what works in real workplace situations.
Heidi’s strength lies in her ability to see the bigger picture while managing the practical details. She ensures every training programme empowers delegates to achieve excellence in their roles, creating lasting change that benefits both individuals and the organisation.