Employment law is changing. Are you ready?

Big changes to employment law are coming, and whether you employ one person or more than 100, you’ll want to prepare yourself for what’s to come.

It’s not simply about whether you’re aware of the changes, but whether your contracts, policies, processes, managers and employee records are ready in practice.

Changes to unfair dismissal

From 1st January 2027, employees will gain protection from ordinary unfair dismissal after six months’ service rather than two years. That makes the way you manage probation, performance and early employment decisions much more important.

Ask yourself:

• Are your employment contracts up to date?
• Do your policies reflect current and forthcoming employment law requirements?
• Are probation periods supported by a clear review process, and are those reviews actually taking place?
• Are performance, conduct and absence issues being managed consistently?
• Could you evidence what happened and why if an employment decision were challenged six months later?

Also from 1st January 2027, the statutory cap on the compensatory award for ordinary unfair dismissal will be removed. Compensation will continue to be based on the employee’s evidenced actual and projected losses, but there will no longer be the current statutory ceiling.

Changes to sexual harassment law

From 30th October 2026, employers will be required to take all reasonable steps to prevent sexual harassment. Employers can also be liable for harassment of employees by third parties – meaning clients, customers, contractors, suppliers, consultants, service users, event attendees or members of the public.

What happens if a client makes an inappropriate comment to one of your employees during a meeting? Or a customer, contractor or supplier behaves in a way that could amount to harassment?

Would your managers:

• recognise the issue?
• know what to do immediately?
• know when and how to escalate it?
• understand how to support the employee?
• know what needs to be recorded?

Having a policy isn’t enough if the people responsible for putting it into practice don’t know what to do. Are your managers trained and confident in the HR responsibilities they are expected to carry out?

Changes to trade union joining rights

From 1st January 2027, employers will also have a new duty to provide workers with a standardised written statement informing them of their right to join a trade union. New workers will need to receive the statement alongside their written statement of employment particulars, with requirements applying to existing workers too.

Ask yourself

• Is your statement ready to issue?
• Do you know who is responsible for issuing it?
• Do you have measures in place to make sure the requirement continues to be met, rather than something being prepared once and then forgotten?

What could getting things wrong cost you?

Employment law compliance isn’t just an administrative exercise. Depending on the issue, getting it wrong can expose a business to tribunal claims, financial penalties, compensation and the time and cost involved in dealing with a dispute.

If you’re not sure how to navigate the upcoming changes, or need to figure out if you’re prepared and compliant, we’d love to help you put the right HR foundations in place before an issue arises.

Burgess Hodgson can support you with:

• employment contracts and documentation
• employee handbooks and policies
• HR compliance reviews and audits
• probation, performance and employee relations processes
• manager training
• practical HR advice when people issues arise

For businesses that want ongoing support, our HR Partner retained service gives you access to HR expertise from people who get to know your business. We can help keep your contracts, policies and HR practices under review, support your managers and help you stay ahead of employment law changes as they take effect.

One employee or 100+, the question is the same: are you ready?

If you are not sure your business is ready for the changes ahead, get in touch at hrsupport@burgesshodgson.co.uk  to discuss how Burgess Hodgson HR Advisory can support you.

Frequently asked questions

When do these employment changes come into effect?
Two dates to know: 30th October 2026 (sexual harassment) and 1st January 2027 (unfair dismissal and trade union rights).

What’s changing on unfair dismissal?
From 1st January 2027, employees will be protected from ordinary unfair dismissal after six months’ service, down from two years. The statutory cap on compensation will also be removed, meaning there’s no ceiling on what a successful claim could cost you.

What does that mean for how we manage people?
Probation periods, performance management and early employment decisions all become more important. If a decision were challenged six months in, could you evidence what happened and why?

What’s changing on sexual harassment?
From 30th October 2026, employers must take all reasonable steps to prevent sexual harassment – including harassment by third parties such as clients, customers, contractors and suppliers. A policy alone isn’t enough; your managers need to know what to do if something happens.

What’s changing on trade union rights?
From 1st January 2027, employers must provide all workers with a written statement informing them of their right to join a trade union – new starters alongside their employment particulars, and existing workers too.

What happens if we get things wrong?
Tribunal claims, financial penalties, compensation, and the time and cost of dealing with a dispute. With the unfair dismissal cap removed, the financial exposure is significant.

Where can I get help with these employment law changes?
Get in touch at hrsupport@burgesshodgson.co.uk – we can review where you are and help you get the right foundations in place before an issue arises.