The UK employment law landscape has changing significantly and staying compliant has never been more critical. Following our review of the latest legislative developments, we’ve outlined the key changes you need to be aware of, the practical steps needed to protect your business and why getting recruitment right is more important than ever.
Recruitment: Getting It Right From the Start
Before we explore the 2026 employment law changes, it’s worth stepping back to consider where good people management really begins, and that’s at the point of recruitment. At Personnel Placements, we believe that a robust, structured recruitment procedure is the foundation of a healthy, compliant, and productive workforce.
Many of the employment law challenges businesses face, from unfair dismissal claims to discrimination disputes, have their roots in a poorly managed hiring process. By following a consistent, legally sound recruitment procedure, you not only attract the right people but also protect your business from risk.
A robust recruitment process should include:
- A clearly defined job description and person specification before advertising begins
- Advertising roles through appropriate channels, using inclusive and non-discriminatory language
- A structured, consistent interview and selection process, using the same criteria for all candidates
- Proper pre-employment checks, including right-to-work verification, reference checks and, where relevant, DBS checks
- Clear, written employment contracts issued before or on the first day of employment
- A well-planned induction and probationary period with defined objectives and regular review points
With changes to unfair dismissal rights coming into force from January 2027, and day-one rights already expanding in several areas, the importance of getting recruitment right and managing probationary periods proactively has never been greater. Personnel Placements can support you through every stage of the recruitment process, from writing job descriptions to conducting compliant interviews and providing interview training for your hiring managers.
Statutory Sick Pay – A Major Change From April 2026
One of the most impactful changes for employers this year is the reform to Statutory Sick Pay (SSP). From April 2026, SSP will be payable from day one of illness, eliminating the previous three-day waiting period. In addition, the lower earnings limit of £123 per week is being removed, meaning virtually all employees will now qualify for some level of sick pay.
Employees will receive SSP at 80% of their normal weekly earnings, or the flat rate of £123.25 per week, whichever is lower. While this is a fair and supportive change for genuinely unwell workers, it also increases the financial burden on employers and makes proactive absence management more important than ever.
Managing Employee Absence: Best Practice for Employers
According to a 2025 CIPD and Simply Health survey, UK employees took an average of 9.4 sick days per year. For a business paying the National Minimum Wage, that equates to around £900 per employee annually, rising to £1,500 for a £40,000 salary. With the SSP changes tightening the financial picture further, a robust absence management policy is no longer optional.
Key steps to managing absence effectively include:
- Publish and consistently apply your absence management policy
- Set clear absence triggers (we recommend a formal review after three absences in a six-month period)
- Conduct return-to-work interviews after every absence
- Record all absences accurately using reliable HR software
Unfair Dismissal: The 2027 Change You Must Prepare For Now
From January 2027, employees will be protected from unfair dismissal after just six months’ service, down from the current two-year qualifying period. This is one of the most significant shifts in UK employment law in recent years, and its impact begins now. Any employee who joins your organisation from July 2026 onwards could already have six months’ service by the time the new rules take effect.
Employers should take the following actions immediately:
- Ensure probationary periods are concluded within six months
- Be prepared to make performance decisions more quickly and with full documentation
- Invest in effective probationary period management, including SMART objectives, regular one-to-ones, and honest feedback
- Expect an increase in employment tribunal claims and ensure your procedures can withstand scrutiny
It is also worth noting the direct link between this change and your recruitment process. Hiring the right person from the outset through a structured, skills-based selection process, reduces the likelihood of needing to manage underperformance or make difficult decisions during a shortened probationary window.
Other Key Employment Law Changes in 2026
Several other significant updates come into effect this year:
From 6 April 2026, paternity leave and unpaid parental leave both become day-one rights, removing previous service requirements. Employees can take up to 18 weeks’ unpaid parental leave per child, up to their 18th birthday.
From April 2026, the National Living Wage (NMW), for workers aged 21 and over rises to £12.71 per hour. Salary benchmarking at the recruitment stage is now even more important to remain competitive and attract the right talent.
A new enforcement body, The Fair Work Agency, will consolidate worker protections including National Minimum Wage, holiday pay, and agency worker regulations.
Employers are now legally obliged to take proactive steps to prevent sexual harassment in the workplace. From April 2026, sexual harassment is also added to the list of protected disclosures under whistleblowing legislation. If you do not have a policy in place, this must be addressed urgently. Get in touch for help, support and training for Sexual Harassment Awareness training.
How Personnel Placements Can Help
Whether you need end-to-end recruitment support, a one-off review of your recruitment process, HR support or management training workshops, our experienced team is here to help.
Get in touch with Personnel Placements today to find out how we can support your business through these important changes.
Call us on 01722 334433 or email us here!
