​If you have been operating on the assumption that employment law risk largely starts after two years, that window is closing.

The reforms landing across 2026 and 2027 represent one of the most significant shifts in generations. It will affect cost, culture, management behaviour and ultimately business resilience. The direction of travel is clear: earlier rights, longer claim windows and higher financial exposure.

Following on from the Recruitment and HR Reset Conference we held in partnership with Roythornes Solicitors, below are the key changes we took from the event, and what they mean for your business.

The headline change is unfair dismissal reform. From January 2027, the qualifying period will be reduced from two years to six months. It is not a full day one right as originally proposed, but day one protection remains in place for discrimination, whistleblowing and trade union activity.

In practical terms, the traditional safety net that many organisations relied upon will disappear. An employee starting by 1 July 2026 could bring an unfair dismissal claim by 1 January 2027, dramatically shortening the window in which recruitment errors can be quietly corrected. This makes probation critical. Not symbolic, not informal, not something that slips when diaries get busy. Structured reviews at one, three and five months should be standard. Service dates need to be actively monitored. Performance conversations must be documented early and clearly. If it is not written down, it did not happen. Informal management approaches that once felt low risk will no longer be sustainable.

Alongside this, tribunal time limits will extend from three months to six months during 2026. At the same time, the compensation cap for unfair dismissal, currently 52 weeks’ pay or £118,233, whichever is lower, is being removed. Issues will not fade after a quarter; they will sit there for half a year. Documentation such as emails, rotas, notes and CCTV footage will need to be retained and organised more carefully. Claims may increase, and no win no fee representation becomes more commercially viable. Settlement dynamics are likely to shift.

Fire and rehire practices will also face tighter regulation from January 2027. Some dismissals connected to contractual change could become automatically unfair, and genuine consultation will be required. Employers will need to properly engage, negotiate and evidence the process. Change management capability becomes a leadership skill, not just an HR function.

The preventative duty around workplace harassment will strengthen in October 2026. Employers will be required to takeall necessary steps, not just reasonable steps, to prevent harassment. The duty extends to third-party harassment and covers all protected characteristics. This raises the bar. Policies alone will not suffice. Training must be meaningful; expectations must be cascaded through management levels and reporting routes must be safe and trusted. Culture and compliance now sit side by side.

Statutory sick pay also shifts in April 2026, becoming payable from day one of sickness, with eligibility from day one of employment. There will be increased direct costs, particularly in sectors with high turnover or absence levels. Robust absence management therefore becomes commercially important. Early intervention, supportive conversations and proactive health support are no longer optional extras. Good absence management is a financial decision, not an administrative process.

Day one rights expand further in April 2026 with paternity leave and unpaid parental leave becoming available from the start of employment, alongside enhanced bereavement protections. Managers will need to be prepared for earlier leave requests and respond confidently and lawfully. The learning curve for new managers will steepen with collective redundancy rules tightening as well. From April 2026, the maximum protective award doubles from 90 to 180 days' pay. From 2027, redundancy thresholds will be calculated across the wider organisation rather than per site. This means consultation obligations may be triggered earlier than many expect. Workforce planning, communication and documentation will need to be more sophisticated, and procedural errors will eventually become more expensive.

Gender pay gap reporting also evolves. From April 2026, action planning becomes voluntary, but from 2027, it becomes mandatory. Employers will need to explain why pay gaps exist, set tangible action plans, structure menopause support clearly and report annually. This is not simply a compliance requirement. It is a leadership and culture statement. Transparency will influence brand, attraction and retention.

Summary

When these changes are viewed together, the pattern is obvious. It represents a fundamental shift in the people-risk landscape where success will be dependent on moving from a reactive HR approach, to a proactive, structure-driven management.

Unfair dismissal protection begins at six months instead of two years, tribunal claims can be brought within six months instead of three and compensation caps are removed. Day one rights expand across multiple areas, risk starts earlier and lasts longer. Financial exposure increases and informal management becomes high risk. For leaders, this requires a shift in mindset. Probation must be actively managed, correct processes for documentation must be adhered to and exits must be handled carefully as inconsistency creates legal vulnerability.

The changes reshape how organisations hire, manage and support their people. Those who start preparing now, whether it be strengthening processes, upskilling managers or embedding a culture of accountability, will be more resilient, more compliant and better positioned to attract and retain talent in a far more regulated employment environment.

​