If you run an SME, keeping on top of employment law changes can sometimes feel like a full-time job. Between running your business, managing your team and looking after customers, finding the time to keep up with new legislation isn’t always easy.
While several important employment law reforms came into force earlier this year, the changes don’t stop there. The Government is introducing new legislation in phases throughout 2026 and into 2027, giving businesses time to prepare, but also meaning there’s plenty still to come.
To help you stay ahead, we’ve rounded up the key employment law changes still on the horizon, along with a reminder of the reforms that have already taken effect and what they mean for your business…
Employment law changes at a glance
| Employment law change | Expected timing | What it means for SMEs |
| Stronger duty to prevent workplace harassment | Late 2026 | Employers will need to take all reasonable steps to prevent workplace harassment. |
| Employment Tribunal time limits | Expected late 2026 | Employees are expected to have longer to bring certain tribunal claims. |
| Trade union reforms | Throughout 2026 | Further changes to recognition and industrial action rules. |
| Unfair dismissal reforms | January 2027 | Qualifying period reduces from two years to six months. |
| Fire and rehire restrictions | January 2027 | Greater restrictions on changing employment contracts through dismissal and re-engagement. |
| Zero-hours contract reforms | During 2027 | New rights around guaranteed hours, shift notice and cancelled shifts. |
A quick recap: What’s already changed in 2026?
Earlier this year, several significant employment law changes came into force, including:
- Statutory Sick Pay is now payable from day one of sickness absence, with more employees qualifying
- Paternity Leave and Unpaid Parental Leave became day-one rights
- Employers must now keep holiday pay records for six years
- The Fair Work Agency launched to strengthen enforcement of employment rights
- Stronger protections were introduced for whistleblowers reporting sexual harassment
If you haven’t already reviewed your policies, payroll processes and employee handbook to reflect these changes, it’s worth doing so as soon as possible.
Employment law changes still to prepare for
Stronger duty to prevent workplace harassment
One of the next major reforms is the strengthening of employers’ duty to prevent workplace harassment.
The Government plans to require employers to take all reasonable steps to prevent harassment, including harassment by third parties such as customers, suppliers and contractors.
Now is a good time to review your anti-harassment policy, provide refresher training for managers and employees, and make sure staff know how to raise concerns.
Longer Employment Tribunal time limits
The Government also plans to extend the time limits for bringing certain Employment Tribunal claims.
Although implementation dates are still being confirmed, businesses should be aware that employment records may need to be retained for longer, making good documentation and record keeping even more important.
Ongoing trade union reforms
Additional reforms relating to trade unions and industrial relations are expected throughout the remainder of 2026.
While these changes are likely to have the biggest impact on larger or unionised employers, SMEs should still keep an eye on developments to ensure they remain compliant where relevant.
Unfair dismissal reforms
One of the biggest employment law changes still to come takes effect from January 2027.
The qualifying period for ordinary unfair dismissal claims will reduce from two years to six months, meaning employees will gain legal protection much sooner in their employment. The statutory cap on compensatory awards will also be removed.
For employers, this places even greater importance on effective recruitment, structured onboarding, well-managed probation periods and documented performance management.
Fire and rehire restrictions
Also expected in January 2027 are tighter restrictions on the use of “fire and rehire” practices.
The reforms aim to make it much harder for employers to dismiss employees simply to impose less favourable contractual terms. Businesses should carefully review how they manage organisational change and seek advice before making contractual changes.
Zero-hours contract reforms
Further reforms are planned for businesses that rely on zero-hours or low-hours workers.
The proposals include:
- Guaranteed hours offers based on regular working patterns
- Reasonable notice of shifts
- Compensation where shifts are cancelled or changed at short notice
- Additional protections for agency workers
Although these measures are still subject to consultation, employers who rely on flexible workforces should start considering how these changes could affect workforce planning.
Restrictions on Non-Disclosure Agreements (NDAs)
The Government is also consulting on reforms that would restrict the use of NDAs relating to discrimination, harassment and other workplace misconduct.
While details are still being finalised, businesses should monitor developments and ensure any future settlement agreements reflect the latest legal requirements.
Stay ahead of employment law changes with HR Planner
Employment legislation will continue to evolve over the coming months, but staying compliant doesn’t have to be complicated.
HR Planner helps SMEs keep employee records organised, manage holiday and absence, securely store important documents and maintain the audit trail needed to support compliance, all within one easy-to-use cloud-based HR management system.
By having your HR processes in one place, you’ll be better prepared for both current requirements and future employment law changes, giving you more time to focus on running your business.
Start your free 14-day trial today and see how HR Planner can simplify your HR. Alternatively, call us on 01252 636070 or email support@hrplanner.uk to discover how HR Planner can support your business.