The 2026 employment law changes represent the biggest shift in UK employment legislation in a generation, and they will fundamentally test how robust your people foundations really are. Taking effect through 2026 and into 2027, these aren’t just legal updates, they’re a stress test for how robust your people foundations really are.
Whether you’re scaling rapidly, refining your leadership, or building a values-led culture, if your managers aren’t trained, your people processes aren’t consistent and your culture doesn’t match your contracts, you could be exposed.
Recent developments around the UK Employment Rights Bill set to become law and deeper details from government and employment law guidance show us where reforms really stand.
What’s Actually Changing in the 2026 Employment Law Changes
Here’s a clear overview of the 2026 employment law changes that are the key changes affecting UK employers:
Early Employment Rights (but not full day-one unfair dismissal)
Some headline reforms originally proposed for day one unfair dismissal protection will not proceed as initially planned. The Government has dropped the day-one unfair dismissal right and replaced it with a six-month qualifying period, down from the current two years. This is brilliant news (in my humble opinion) as I have been preparing my clients for this for a couple of years – moving probationary periods to 6 months is now evidently non-negotiable.
However, other rights are becoming stronger earlier in employment:
- Statutory paternity, parental and other leave rights from day one. This one makes me particularly happy because in my career I have had 4 fathers miss out on Paternity Leave by mere DAYS because their start date didn’t qualify for 2 weeks of minimum statutory Paternity Leave.
- Statutory sick pay and other protections also move closer to first-day relevance starting in 2026.
This means employers must be ready to support new joiners right away, there can no longer be complacency and excuse from employers who feel they have 2 years – it is time to tighten processes and be a genuinely great employer.
Stronger Harassment Prevention Duties
The law around harassment is being significantly strengthened:
- From October 2026, employers will be required to take ‘all reasonable steps’ (a higher standard) to prevent harassment in the workplace not just ‘reasonable steps.’ This is still fairly ambiguous but a step in the right direction which means employers will have to prove their reasonable steps.
- Employers will also be liable for harassment by third parties (clients, customers, contractors) unless they can demonstrate they took all reasonable steps to prevent it.
- Sexual harassment will be expressly recognised under whistleblowing protections from April 2026. I cannot believe it wasn’t already!
This means your policies, training and reporting mechanisms need to be stronger and better evidenced than ever before.
Flexible Working, Shifts, and Emerging Rights
Flexible working requests and other rights are also evolving:
- Employers will continue to see early flexible working requests and statutory shifts in practice, and courts will expect documented, consistent policies.
- New protections and reforms related to tipping policies, tribunal deadlines and trade union access are also expected across 2026, with guidance from ACAS.
What This Means for Your SME Business
As an HR professional, our balance between Employment Law and what actually works in SME businesses is where we add our value, and these 2026 employment law changes are no different. The theme across all reforms is evidence, consistency and preparedness… And it means now is the time to equip yourself with HR because ‘winging it’ won’t cut it anymore for SMEs!
If your SME relies on informal practices, hasn’t trained managers in legal risk areas, doesn’t document decisions in a fair and consistent way and has a mismatch between culture and contracts then you could find yourself exposed sooner than you think.
These employment law changes are phased in across 2026 and into 2027 and require both strategic planning and operational discipline. Any Employment Law changes rely heavily on managers to consistently follow the guidelines and confidently lead and manage people with the broad knowledge of the law.
Time to Panic? Your 2026 Compliance Action Plan
Now’s the time to:
? Audit contracts and policies for updated rights and obligations
? Train managers on harassment prevention and fair processes
? Review flexible working and shift practices
? Update performance and capability frameworks
? Stress-test redundancy and consultation practices
? Think strategically about inclusion, equity and fairness
At ExhilHRate, we help founder-led and scaling SMEs turn compliance into commercial strength not just paperwork. Let’s make your people foundations legally robust and performance-driven, focused on profit.
Book a People Strategy MOT to Start
A People Strategy MOT is a practical, commercial health check of your people foundations, designed to show you where you’re strong and where you may be exposed as 2026 employment law changes take effect.
It’s not a tick-box compliance exercise. The exhilHRate MOTs are all about clarity, confidence and future-proofing your business.
What We’ll Cover
Contracts, policies and early-employment rights
A high-level review of contracts, handbooks and onboarding to ensure they reflect current and upcoming legal expectations.
Manager capability and confidence
An honest look at how well your managers are equipped to handle performance, conduct, flexibility and difficult conversations.
Fairness, consistency and decision-making
We stress-test how people decisions are made and documented, focusing on consistency, defensibility and risk reduction.
Performance and role clarity
A review of role expectations, capability frameworks and how clearly performance standards are set.
Culture vs contract alignment
We check whether your values and culture are genuinely reflected in day-to-day management and written processes.
What You’ll Get
- A clear view of your risk and readiness
- A prioritised action plan aligned to 2026 reforms
- Practical recommendations you can act on immediately
Many clients then choose to follow up with monthly, targeted support, focusing on one priority area at a time, calmly embedding change without overwhelm.
If you want to get ahead of the 2026 changes with confidence, a People Strategy MOT is the smartest place to start!
