The UK employment law landscape is changing significantly, and employers should not wait until every new measure is fully in force before taking action. For UK employers, Employment Rights Act HR compliance should now be a priority. The Employment Rights Act 2025 is introducing changes across sick pay, dismissal rights, flexible working, family leave, trade union rights and wider workplace protections, with many measures being phased in during 2026 and 2027.

For many employers, particularly small and growing businesses, the biggest challenge will not be understanding the headlines, but translating the changes into practical day-to-day management.

The businesses that will manage this well are those that start preparing early.

Why Employment Rights Act HR Compliance Matters

Employment law reform is often discussed in technical terms, but the practical impact is straightforward: employers will need stronger people processes, better documentation, more consistent management decisions and clearer communication with employees.

Where HR processes are informal, inconsistent or manager-dependent, risk increases. This is particularly true in areas such as probation, performance management, sickness absence, flexible working, contracts, family leave and dismissals.

For many growing businesses, the issue is not bad intent. It is that people practices often develop reactively. A manager deals with an issue as it arises, a policy is updated only when something goes wrong, or employee records are not kept consistently. Under a more rights-focused employment environment, this becomes harder to defend.

Key HR Compliance Areas Employers Should Review

1. Contracts and Employment Status

Employers should ensure that contracts accurately reflect the working relationship. This includes job title, hours, pay, place of work, probation arrangements, notice periods, benefits, flexibility requirements and any variable working arrangements.

Where businesses rely on casual workers, zero-hours arrangements, contractors or consultants, it is sensible to review whether those arrangements remain appropriate and properly documented.

2. Probation and Early Performance Management

Managers often see probation as an informal period where concerns can be dealt with quickly. However, as employment rights expand, employers will need to show that they have acted fairly, consistently and with a reasonable basis for decisions.

A good probation process should include clear objectives, regular check-ins, written feedback, documented concerns and a proper review before any decision is made to extend probation or terminate employment.

3. Sickness Absence and Family Leave

Recent changes to statutory sick pay and family leave rights mean employers should review their policies, payroll processes and manager guidance. Managers need to understand what employees are entitled to from day one, when medical evidence is required, how absence should be recorded, and when an occupational health referral may be appropriate.

This is especially important where absence is linked to disability, pregnancy, mental health or long-term health conditions.

4. Flexible Working and Working Patterns

Flexible working is no longer a “nice to have” issue. Employees increasingly expect flexibility, and employers need a structured way to consider requests fairly.

Businesses should ensure managers know how to assess requests, identify legitimate business reasons for refusal, explore alternatives and document the decision-making process.

5. Harassment, Culture and Workplace Conduct

The duty on employers to prevent harassment has become a major HR governance issue. It is no longer enough to have a policy sitting in a handbook. Employers need to show that they have taken active steps to prevent inappropriate behaviour.

This may include training, risk assessments, clear reporting channels, manager guidance, bystander awareness, and prompt action when concerns are raised.

Employment Rights Act HR Compliance Checklist

The most practical starting point is an HR compliance review. This does not need to be complicated, but it should identify whether the business has the right documents, processes and manager capability in place.

At a minimum, employers should review:

• employment contracts;
• employee handbook and policies;
• probation process;
• sickness absence process;
• flexible working procedure;
• disciplinary and grievance procedures;
• harassment and dignity at work policies;
• manager guidance and templates;
• payroll and leave administration;
• employee record-keeping.

Once the gaps are clear, the next step is to prioritise. Not everything needs to be fixed at once, but high-risk areas should be addressed first.

Why Manager Training Matters for Employment Rights Act Compliance

One of the biggest risks for employers is assuming that policies alone create compliance. They do not.

Managers are usually the people who receive the first sickness call, handle the first performance concern, respond to the flexible working request or deal with the first complaint. If they are not confident, consistent and properly supported, even a well-written policy can fail in practice.

Manager training and simple templates can make a significant difference. Businesses should make it easy for managers to do the right thing.

Final Thought

The Employment Rights Act should be seen as an opportunity to strengthen the way work is managed. Good HR governance is not about creating unnecessary bureaucracy. It is about making sure decisions are fair, consistent, commercially sensible and defensible.

For growing businesses, now is the right time to move from reactive HR to structured people management.

Stability HR supports businesses with practical HR audits, policy reviews, manager guidance and people processes that help organisations stay compliant while continuing to grow.