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Employment Law Update 2026

It’s been a little while since we shared an Employment Law Update, so here’s a quick heads-up on changes that could quietly affect your contracts, payroll and people processes if left unchecked. The Employment Rights Act 2025 brings some of the most significant changes to UK employment law in years. While most reforms aren’t expected to take effect until April 2026, many businesses are already starting reviews to avoid last-minute changes and unnecessary risk later on. What’s Changing? A Top-Line Overview Here are the main areas employers should have on their radar: 1. Day-one Statutory Sick Pay (SSP)Employees are expected to become entitled to SSP from their first day off sick. 2. Day-one family leave rightsImmediate access to paternity leave and unpaid parental leave, with no length-of-service requirement. 3. Longer tribunal claim deadlinesMost Employment Tribunal claim time limits are expected to increase from three months to six months. 4. Restrictions on “fire and rehire”Proposals include a ban or significant limits on dismissing and rehiring employees on less favourable terms. 5. New protections for zero-hours and irregular workersLikely changes include guaranteed minimum hours, reasonable notice of shifts, and compensation for cancelled shifts. Does This Affect You? This is particularly relevant if you: – employ people on zero-hours or irregular contracts – rely on short service periods in contracts or policies – have managers dealing with sickness, family leave or contract changes – haven’t reviewed your contracts or handbook in the last 18–24 months If you’re nodding at any of the above, it’s worth a quick sense check. What to Do Next These changes will impact contracts, handbooks, payroll processes and how managers handle people issues day to day. Changes are expected to begin taking effect from April 2026, but preparation now will make things far simpler later.    

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Redundancy

Redundancy is one of the most challenging areas of people management — and when difficult decisions are involved, having the right support in place really matters. We’re being asked about redundancy more and more, particularly how to manage the process fairly, legally, and with compassion. Five practical tips for managing a redundancy process in the UK Redundancy is never easy — for employers or employees. How it’s handled can significantly affect morale, reputation, and risk long after the process is over. 1. Get clear before you communicateBefore any conversations take place, be clear on the business rationale, who may be affected, and the proposed timeline. A well-planned process avoids confusion, mixed messages, and unnecessary distress. 2. Make consultation meaningfulConsultation isn’t a formality. Employees must be given genuine opportunity to understand the proposal, ask questions, and suggest alternatives. Individual consultation is essential — even where group consultation also applies. 3. Apply fair and objective selection criteriaWhere roles are being selected for redundancy, criteria should be relevant, consistent, and evidence-based. Care must be taken to avoid anything that could indirectly discriminate, such as absence related to health conditions or family leave. 4. Communicate with honesty and empathyClear, compassionate communication matters. Be open about what is known, what is still being considered, and what support is available. How redundancy is handled will shape trust, morale, and your employer brand. 5. Double-check notice and paymentsEnsure statutory and contractual notice, redundancy pay, and holiday calculations are accurate. Errors here are common — and easily avoidable with the right advice. Handled well, redundancy can be a structured and respectful process. Handled poorly, it can lead to claims, damaged trust, and long-term impact on your business. If redundancy is on your radar — or you simply want to sanity-check your approach — a short conversation can often prevent costly mistakes later.  

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Be My (Workplace) Valentine?

Long time, no HR love… With Valentine’s everywhere at the moment, it’s a reminder that relationships matter. Not just the romantic ones — the workplace ones. Managers and teams.Business owners and employees.Those “can I have a quick word?” moments. At People Vision HR, we help businesses keep those relationships healthy — before small issues turn into big (and expensive) problems. Most HR drama doesn’t start dramatically.It starts with: – A conversation avoided – Expectations not made clear – Feedback softened too much – Policies that don’t match real life Our job is simple: deal with things early, properly and calmly. Whether that’s coaching a manager before a tricky conversation, handling a grievance, updating contracts, or supporting a restructure — we keep it straightforward and commercially sensible. If something feels slightly “off” in your team right now, it’s usually worth addressing. Because strong workplace relationships aren’t built on grand gestures — they’re built on consistent habits. Here are five that make a real difference. 5 Ways to Show Your Team Some Workplace Love (No Chocolates Required) 1. Have the conversation you’ve been putting off. 2. Be clear — clarity is kinder than confusion. 3. Make sure your policies reflect how people actually work. 4. Invest in manager training before problems arise. 5. Deal with issues early — stage one is always easier than stage ten. Strong workplaces run better, feel better and cost less to manage.

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Don’t let annual leave turn into an argument

With Easter coming up, now is a good time for employers to check that annual leave and bank holiday arrangements are clear, fair and being handled consistently. These issues can look small on the surface, but when managers get them wrong, they can cause frustration very quickly. Here are a few things worth checking before the Easter break: 1. Is your bank holiday wording clear?This is where confusion often starts, especially for part-time staff. If your contracts or holiday policy are vague, people may make assumptions and managers may apply rules differently. 2. Are managers handling leave requests consistently?Easter can be a popular time for annual leave. If requests are approved without looking at team cover or handled differently from one employee to the next, it can quickly create tension. 3. Does your handbook reflect how things actually work?A lot of businesses have policies tucked away in a handbook that no longer match day-to-day practice. Easter is a good prompt to take another look and make sure your wording still works in real life. 4. Are you being fair to part-time employees?Bank holiday entitlement can be a particular minefield here. If this is not calculated or communicated properly, it can lead to resentment and unnecessary issues. 5. Do your managers know what to do?Even with a decent policy in place, things can still go wrong if managers are making decisions on the hoof. A quick reminder now can save a lot of back and forth later. A good place to start is your Employee Handbook.  Check what it says about annual leave, bank holidays, part-time entitlement and how leave should be approved. If it is unclear, out of date or no longer reflects what actually happens in the business, it may be time for a refresh. These issues are usually much easier to fix before they turn into complaints or employee relations problems.

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A grievance will cost you more

Conflict rarely fixes itself — but it can quickly become more formal, more disruptive and more expensive. Let’s be honest — workplace conflict is expensive. It eats management time, drains morale, distracts good people and slows teams down. Left too long, what starts as “tension” or a “personality clash” can turn into a grievance, absence, resignation or a much bigger employee relations problem. Whether you are in HR, running the business or managing a team, no organisation gets a free pass. Any sector. Any size. If people work together, things can go wrong. That is where mediation can help. At People Vision HR, we offer external workplace mediation to help employers deal with conflict early, calmly and properly — before it becomes more formal, more disruptive and more expensive. 5 reasons employers use mediation: 1. It helps stop issues escalating – Mediation can be used early, before problems spiral into formal grievances, resignations or wider team issues. 2. It saves management time – Ongoing conflict has a habit of swallowing hours you do not have. Mediation gives the issue structure and helps move things forward more quickly. 3. It protects working relationships – The aim is not to work out who is the office villain of the week. It is to rebuild communication and help people find a workable way forward. 4. External support brings neutrality – A mediator is independent and impartial. That matters. People are often more willing to engage openly when the process is neutral, structured and confidential, rather than being led internally by someone already caught in the history of it all. 5. It is often far cheaper than letting conflict drag on – The cost of ongoing conflict soon adds up in management time, disruption, stress, reduced productivity and formal process. Pricing: Our onsite full-day workplace mediation for 2 people is £1,750. To make it easier to get started, we are offering 10% off for bookings using code: PVMED01. We are also happy to offer a free 15-minute confidential scoping call to help you decide whether mediation is the right route. And if we do not think it is, we will say so. Frankly, £1,750 for onsite mediation is likely to cost you less than the management time, disruption and fallout of letting the issue escalate. If something is bubbling away in your business, now is the time to deal with it.    

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AI just made grievances easier to write

Sarah built Watkins & Co from scratch. Ten years, three sites, 35 staff. She’s the founder, the decision-maker, and the person who keeps everything running. On Monday morning she opened an email from her niece Chloe. Not a question about her holiday dates. A formal grievance. 13 pages. A timeline going back fourteen months. Bullet points cross-referenced to the ACAS code of practice. Chloe found ChatGPT. This is the new reality. AI is helping employees file more structured, more detailed and more legally aware complaints than ever before — without a solicitor, without HR advice, and without warning. Just a prompt and a Monday morning. Sarah has no HR function. No investigation process. And no idea whether she’s supposed to respond as an employer or as an aunt. The answer is employer. And the process needs to be right. ✅ 3 THINGS TO DO IF A GRIEVANCE LANDS ON YOUR DESK 1. Acknowledge it in writing within 5 working days — silence is not neutral, it’s a procedural failure. 2. Appoint an investigator with no connection to the complaint — if it involves family, that person cannot be you. 3. Follow your grievance procedure to the letter — if you don’t have one, you need one before you respond. These three steps will keep you on the right side of the process. But here’s the reality — most business owners get to step two and freeze. Because the investigator you need to appoint is you. And the person you need to investigate is family. This is exactly the situation People Vision HR was built for. We conduct independent workplace investigations — properly. We scope it, manage the process, conduct the interviews, review the evidence and produce a report that holds up when someone comes looking. We’ve been doing this for 10 years, across businesses of every shape — including the complicated ones. Don’t let a 13 page grievance be the thing that catches you out.

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A six-week absence can become a five-figure problem

Dave’s a senior accountant at Watkins & Co — Sarah’s 45-person practice across three sites. Six years in. Solid. Never any trouble. Five weeks ago he threw his back out and he’s been at home ever since. Sarah’s been great about it. Weekly check-ins, full pay, told him there’s no rush. Because that’s the kind of employer she is. But here’s what nobody’s told her. A bad back that doesn’t shift can become a disability under the Equality Act 2010. Not always. But often enough that if Sarah dismisses Dave — or handles this wrong — she could be facing a discrimination claim rather than a straightforward capability case. And right now nobody at Watkins & Co has assessed that risk. Not once. Being kind is not the same as being compliant. ✅ 3 THINGS TO DO IN THE FIRST 6 WEEKS OF A LONG-TERM ABSENCE 1. Start a formal absence management process now — a welfare meeting isn’t optional, it’s your first line of defence 2. Ask occupational health to assess whether the condition could meet the Equality Act definition of disability — don’t guess 3. Document everything — every call, every message, every decision — because if this escalates, what’s on paper is all that matters These steps sound straightforward. But most managers avoid them because they feel clinical — and Dave’s been with them six years and they don’t want to make it weird. That’s exactly how an unbudgeted five-figure bill starts. This is where People Vision HR comes in. We help good employers do this properly — the welfare meetings, the occupational health referrals, the letters that need to be exactly right. We’ve supported businesses of every size through long-term absence for 10 years. We know how to be both fair to Dave and protective of Sarah. Before a kind employer becomes an exposed one.

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When great employees become struggling managers

Tariq is a supervisor at Watkins & Co — Sarah’s 45-person accountancy practice across three sites. Brilliant with clients. Never missed a deadline in six years. Eighteen months ago Sarah promoted him to run a team of six. He was the obvious choice. Three months ago two team members started coasting. Work coming back late. Quality slipping. Attitude in meetings getting worse. Tariq noticed. Said nothing. Told himself it would sort itself out. It didn’t. Now the whole team knows there are no consequences. The good people are frustrated. One has already quietly updated her LinkedIn. Tariq is covering the gaps himself because it’s easier than having the conversation. Sarah has no idea any of this is happening. Not malice. Not laziness. Just a technically brilliant person who was never taught how to manage. ✅ 3 SIGNS YOUR MANAGERS NEED TRAINING — NOT JUST EXPERIENCE 1. Difficult conversations get avoided until they become formal complaints — discomfort today is a grievance tomorrow 2. Team performance is inconsistent but nobody’s been told why — silence isn’t kindness, it’s a management failure 3. Your best people are quietly disengaging — they leave managers, not companies Every Tariq we’ve ever worked with has the same look when the training lands — relief that someone finally explained what good management actually looks like. One day’s training costs less than one grievance.

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No social media policy? You’re one upload away from trouble

Aisha runs marketing at Watkins & Co — Sarah’s 45-person accountancy practice across three sites. She’s creative, driven and completely right that the firm needs a social media presence. Six weeks ago she started a TikTok account for the business. Short videos, office culture, a few finance tips. It was actually pretty good. There was just one problem. Nobody had approved it. Then it escalated. Aisha filmed a team meeting for content. Two colleagues asked not to be included. She posted it anyway. One of them has now raised a formal objection. A client spotted the video, recognised their account details on a whiteboard in the background and called Sarah directly. Aisha didn’t mean any harm. She was just doing her job the way her generation does it. But Watkins & Co has no social media policy. No content approval process. No guidance on what can and can’t be filmed in the workplace. Nothing in any contract about it. Which means Sarah has no ground to stand on — and a data protection issue she wasn’t expecting on a Tuesday afternoon. ✅ 3 THINGS EVERY BUSINESS NEEDS BEFORE SOMEONE POSTS ON YOUR BEHALF  1. A social media policy — who can post, what they can post, and what happens if they don’t follow the rules 2. Explicit consent from any employee filmed or photographed for business content — verbal agreement is not enough 3. A content approval process — one person, clear sign-off, no exceptions Most businesses don’t have any of these until something goes wrong. This is where People Vision HR comes in. We draft clear, practical HR and workplace policies that actually get used — not thirty-page documents nobody reads. Social media, data handling, conduct, confidentiality — the policies that protect you before Aisha hits publish. Before your next TikTok becomes a client complaint.

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The AI didn’t make a mistake. The process did

Ryan is a payroll assistant at Watkins & Co — Sarah’s 45-person accountancy practice across three sites. He’s quick, enthusiastic and has fully embraced AI to speed up his work. Sarah thought he was a find. For six months Ryan used an AI tool to process the monthly payroll. He fed in the data, checked the output looked about right and hit send. Every single month. Last week someone finally looked properly. Month 1: £800 in overpayments. Month 2: £1,200. Month 3: £1,400. Month 4: £1,800. Month 5: £2,100. Month 6: £2,300. Total: £9,600. Six months. Nobody noticed. Not a single error was enormous on its own. But together they add up to a serious recovery problem, a difficult conversation with multiple employees, and a payroll process that has to be rebuilt from scratch. Ryan didn’t cut corners deliberately. He just used the tools available to him because nobody told him not to. There’s no AI use policy at Watkins & Co. No sign-off process for automated outputs. No second pair of eyes on anything Ryan produces. The AI didn’t make a mistake. The process did. ✅ 3 THINGS TO PUT IN PLACE BEFORE AI TOUCHES YOUR PAYROLL 1. An AI use policy — which tools are approved, what they can be used for and who is responsible for checking outputs 2. A mandatory review process — no automated payroll output should be submitted without human sign-off 3. An overpayment recovery procedure — so when it happens you know exactly what you can recover, how and when AI is not going away. But right now most businesses are letting staff use it without any framework — and the mistakes land on the employer’s desk, not the tool’s. This is where People Vision HR comes in. We help you build a simple AI use policy your team will actually follow, alongside the payroll checks and HR procedures that stop a small error becoming a £9,600 problem. Practical, plain English, built around your business. Before Ryan’s next six months looks like his last six.

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