Prepare now: why employers can't afford to wait until January 2027

For many employers, managing people has always involved balancing commercial decisions with legal obligations. That balance is about to become more challenging. The upcoming Employment Rights Act reforms will introduce some of the most significant changes to employment law in recent years. While many organisations are aware that change is coming, fewer are considering what those changes mean in practice and whether their existing HR processes are ready.

Waiting until the legislation comes into force could leave businesses reacting to problems rather than preventing them.

Why this matters

One of the biggest changes is the reduction in the qualifying period for unfair dismissal rights. Instead of waiting two years before employees gain protection, new hires will qualify after just six months.

Alongside this, the current cap on unfair dismissal compensation is expected to be removed, potentially increasing the financial exposure for employers where decisions have not been managed appropriately.

Individually, these changes are significant. Together, they fundamentally change how employers should approach recruitment, onboarding and performance management. Businesses will have less time to identify concerns, support underperforming employees and make informed decisions before employment rights become established.

The spotlight moves to the first six months

Many organisations treat probation as a relatively informal process. Reviews are postponed, objectives are unclear and difficult conversations are often delayed because managers hope performance will improve naturally. The new legislation makes that approach increasingly risky.

Employers will need managers who are confident in setting expectations, documenting conversations and addressing concerns early. A well-managed probation period is no longer simply good practice. It is becoming an essential part of managing organisational risk.

Now is the time to review your HR foundations

Preparing for these changes is not about rewriting every policy or creating unnecessary administration. Instead, employers should ask whether their current processes support timely, consistent decision-making.

• Are employment contracts still appropriate?

• Do probation periods reflect how the organisation manages new employees?

• Are managers trained to deal with performance issues confidently?

• Are concerns documented consistently?

Small improvements now could significantly reduce the likelihood of disputes later.

Preparation creates confidence

Employment law will continue to evolve, but organisations that invest in strong HR processes are far better placed to adapt. Rather than viewing these reforms as another compliance exercise, employers should see them as an opportunity to strengthen people management, improve consistency and reduce risk across the business. Preparing before January 2027 will give organisations more time, more flexibility and greater confidence when managing their workforce.

Employment law changes can feel complex, but preparing for them does not have to be. FeMan Consulting works with organisations to review contracts, probation processes, policies and performance management frameworks, helping employers stay compliant while reducing business risk. If you would like to discuss how these changes could affect your organisation, contact Mike Clyne and the team at FeMan Consulting.