If you’ve seen headlines about the Employment Rights Act and thought, “Is this one of those things where nothing really changes… or is it about to cause chaos?” — you’re not alone.
The Employment Rights Act 2025 became law on 18 December 2025, and the changes will roll out in stages across 2026 and 2027. Some of the practical detail will be confirmed through guidance and regulations, but the direction of travel is clear: stronger rights earlier on, and more focus on fair process and good record keeping.
This is a practical guide to what matters most — and what we recommend employers start doing now.
1) Make probation actually mean something (this is the big one)
One of the biggest practical changes on the horizon is that the point at which employees can bring certain claims (including unfair dismissal in many cases) is expected to move earlier — widely expected to be six months, rather than two years, from January 2027.
For many roles, “fit” issues show up early:
- accuracy isn’t where it needs to be
- deadlines are missed
- communication is inconsistent
- the role is bigger than expected
- or it’s simply not the right match
In the past, some businesses have let this drift for months and then tried to fix it later. That becomes much riskier.
What you should be doing now:
Set a clear probation structure (and stick to it)
- Week 2: check-in
- Week 6: performance review
- Week 10–12: decision point
Define what “good” looks like in writing
- quality standards, task turnaround times, systems learned, communication expectations
Document concerns early
- A short follow-up email after a conversation is enough — you don’t need a novel, just a simple paper trail.
- Train managers to have the slightly awkward chats sooner
- The earlier it’s addressed, the easier it is to fix (or part ways fairly).
2) Tighten up job descriptions and expectations
Roles can sound deceptively simple on paper — but in reality, many require initiative, judgement, prioritisation, and the ability to juggle competing demands.
When job adverts are vague, you often hire someone who’s good… just not for your version of the role.
What you should be doing now:
Make job descriptions more specific:
- core responsibilities (day-to-day)
- systems used (even if it’s just “Microsoft Office + CRM”)
- what “success” looks like in month 1–3
Be honest about pace and workload
Build interview questions around real scenarios:
- “How do you prioritise when three people want something urgent?”
- “Talk me through how you’d handle a difficult customer or supplier.”
This improves hiring quality and makes probation management much cleaner.
3) Refresh your policies (and make sure managers know them)
- A lot of the changes coming through over 2026–2027 touch areas like:
- family leave
- sick pay / sickness processes
- workplace conduct and behaviour
- harassment and complaints procedures
- For SMEs, the risk is usually not that the policy doesn’t exist — it’s that:
- it’s outdated,
- nobody can find it,
- or managers are making it up as they go along.
- What you should be doing now:
- Review your employee handbook and contracts
- Make sure you have clear, simple processes for:
- sickness reporting
- flexible working requests (if applicable)
- performance concerns
- grievances/complaints
- Give managers a one-page “how we do things here” guide
- If it takes more than 2 minutes to find the right process, it won’t be followed when it matters.
4) Get serious about documentation (without making it painful)
This Act nudges employers toward one consistent theme: process matters.
That doesn’t mean you need to become a paperwork factory — it means you should be able to show:
- what expectations were set,
- what support/training was provided,
- what conversations happened,
- and what decisions were made (and why).
What you should be doing now:
- After key conversations, send a short follow-up email:
- “Thanks for the chat today — here’s what we agreed…”
- Keep probation and performance notes in one place
- Save key documents centrally (not in someone’s inbox from 2019)
5) Don’t let small issues grow legs (performance and conduct)
In many roles, people have access to systems, data, customers, money, or confidential information — so even minor conduct issues can become big problems if they’re ignored.
- What you should be doing now:
- Address issues early, calmly, and consistently
- Be clear on expected standards
- Apply rules evenly — inconsistency is where trouble starts
A quick checklist for SME employers
✅ Set probation review dates in diaries (and don’t skip them)
✅ Define measurable expectations for month 1–3
✅ Document performance conversations with short follow-up notes
✅ Update job descriptions and make interviews scenario-based
✅ Refresh handbooks and make processes easy to find
✅ Train managers on early, fair performance management
None of this is about becoming a big corporate HR machine. It’s about
- doing the basics well:
- hiring with clearer expectations,
- managing probation properly,
- keeping simple records,
- and dealing with issues early and fairly.
And the employers who do that will not only stay compliant — they’ll hire better, retain more, and have fewer headaches.
For more information and advice, call us on 01789 532220 / 01527 911700
We can help you get things into place.