There’s a lot happening in the world of employment law and HR this year.
That’s why we’ve created a simple 5-point checklist to help business owners to see where they stand:
Legal foundations: Are your contracts and policies actually up to date and applied fairly?
Smart systems: Still using spreadsheets for holidays or sickness? It’s time to automate that.
People performance: Do you know why your best people stay, or what might make them leave?
Wellbeing and culture: Are you spotting issues before they turn into problems?
Growth readiness: Would things keep running if one key person left tomorrow?
You don’t need to overhaul everything at once.
Just start with the bit that’s been bugging you for a while, the thing that you keep meaning to sort out.
Fix that properly, then move on to the next.
Solid HR foundations mean fewer headaches and more time to grow your business.
If you’d like a hand with reviewing where you stand, we are offering a free 30-minute introductory chat to help you to get ready for the year ahead.
Drop me a message to book your spot.
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Employment law reforms
The Employment Rights Act 2025 received Royal Assent just before Christmas.
The timeline is that most reforms are set to take effect in late 2026 and 2027. However, there are a few in April 2026 that you need to be aware of (see below).
That gives employers some breathing space to prepare, and a good reason to review the basics, before the changes arrive.
Make sure your contracts, policies and record-keeping are up to date now.
When the new rules come in, having clear documentation and consistent processes will make adapting much easier.
ON YOUR RADAR – The April 2026 changes
In April, we will see the following changes:
New statutory maternity, paternity and sick pay rates
Statutory maternity, paternity, adoption, shared parental, neonatal care and parental bereavement pay will increase from £187.18 to £194.32 per week from 5 April 2026. Statutory sick pay will increase from £118.75 to £123.25 per week from 6 April 2026.
The lower earnings threshold to claim family-related support will rise at the same time from £125 to £129. According to the Government’s implementation roadmap for the Employment Rights Act 2025, the lower earnings limit to be eligible for statutory sick pay will be removed in April 2026.
Statutory Sick Pay (SSP)
The Employment Rights Act 2025 will make statutory sick pay available to all workers, by removing:
- the three-day waiting period, so SSP is payable from the first day of a period of sickness; and
- the requirement to earn at least the lower earnings limit.
Employees will be entitled to the current rate of SSP, or 80% of their average weekly earnings if that is lower.
Statutory paternity and ordinary parental leave to become day-one employment rights
The Employment Rights Act 2025 will remove the qualifying periods for paternity leave (currently 26 weeks) and ordinary parental leave (currently one year), making them both day-one rights. It will also remove the restriction on employees taking paternity leave and pay after they have taken shared parental leave and pay.
Fair Work Agency to be established
The Employment Rights Act 2025 will establish a single, consolidatd body to monitor and enforce core employment rights: the Fair Work Agency (FWA). The FWA will incorporate certain existing agencies and will be responsible for enforcing rights including the national minimum wage, statutory sick pay and holiday pay.
Although established in April, the timeline for when its enforcement powers will come into effect has not yet been announced.
Sexual harassment added to whistleblowing legislation
The Employment Rights Act 2025 amends the whistleblowing provisions so that complaints of sexual harassment will be treated as protected disclosures.
Protective Awards to Double
The Employment Rights Act 2025 increases the maximum compensation that a tribunal can award where an employer fails to comply with their collective redundancy consultation obligations (known as the protective award), doubling it from 90 to 180 days’ pay.
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Why do so many resignations happen in January?
January is known for fresh starts and that often means job moves.
Every year, there is a sharp rise in people handing in their notice once the holidays are over. For small businesses, that can mean losing key people just as you are trying to plan for the year ahead.
Why does it happen?
Many employees use the quiet time over Christmas to reflect on what is working and what is not.
Common triggers include:
• Realising they have outgrown their role
• Feeling undervalued or overworked
• Wanting more flexibility or development opportunities
• Seeing others move on and feeling it is time for change
The good news is that most resignations are not about pay alone. They are about communication.
A quick check-in about goals, workload and what someone wants from the year ahead can make all the difference. It shows that you care about their future and gives you the chance to fix small issues before they become reasons to leave.
If you haven’t already, schedule some informal one-to-one conversations with your team this month. Those chats could be the simplest and most effective way to keep good people in your business.
