UK employers are being encouraged to review and update their human resources policies as the Employment Rights Act 2025 introduces significant changes to workplace rights and employer responsibilities. The legislation, formerly known as the Employment Rights Bill, is being implemented in phases throughout 2026 and 2027.
The changes affect areas including statutory sick pay, parental leave, flexible working, unfair dismissal, workplace harassment and employee protections. HR teams need to ensure that company policies, employment procedures and manager guidance reflect the latest legal requirements and implementation dates.
Top 10 HR Policies Employers Should Review
According to the HR News report, employers should prioritise reviewing the following policies and procedures:
Sickness Absence Policy: Clarify absence reporting, documentation requirements and how sickness-related cases are managed fairly.
Statutory Sick Pay Policy: Update eligibility criteria and payment procedures to reflect the removal of the lower earnings limit and waiting period, effective April 2026.
Absence Management Procedure: Ensure absence monitoring, escalation processes and return-to-work decisions are consistent and transparent.
Flexible Working Policy: Review how requests are handled and prepare for forthcoming changes to flexible working rights.
Equality, Diversity and Inclusion Policy: Ensure recruitment, workplace treatment and employment decisions support fair and inclusive practices.
Health and Wellbeing Policy: Clarify how employees can access support and how health-related workplace concerns are addressed.
Return-to-Work Policy: Establish clear procedures for supporting employees returning after sickness absence.
Disciplinary and Capability Policy: Review investigation, performance management and disciplinary procedures to ensure they are fair and consistent with employment law.
Manager Guidance and Responsibilities: Train managers to apply updated policies consistently, especially when handling absence, performance concerns and employee requests.
Employee Handbook: Update the handbook to reflect changes across individual policies, employment procedures and employee entitlements.
Important Employment Law Changes to Watch
Several major provisions are already in force or approaching implementation.
Statutory sick pay: Changes took effect on 6 April 2026, removing the lower earnings limit and waiting period.
Employment tribunal deadlines: The time limit for bringing employment tribunal claims increased from three to six months on 1 October 2026.
Sexual harassment protections: From 30 October 2026, employers will be required to take all reasonable steps to prevent sexual harassment and will face a new duty concerning third-party harassment.
Unfair dismissal: From 1 January 2027, the qualifying service period is scheduled to reduce to six months, alongside the removal of the cap on compensatory awards.
Further workplace rights: Additional reforms covering flexible working, bereavement leave, guaranteed hours and equality action plans are scheduled for 2027.
Why HR Policy Updates Matter
Updating policy documents is only one part of compliance. Employers also need to ensure that managers understand the changes, HR systems record employee entitlements accurately and workplace procedures are applied consistently.
Outdated policies can create confusion among employees, increase the risk of disputes and expose organisations to legal and operational challenges. A structured review can help HR teams identify gaps early and prepare for upcoming changes.