Employment Law Risks in 2026: What Employers Should Be Reviewing Now

UK employment law continues to evolve, and 2026 presents ongoing challenges for employers managing compliance, workforce expectations, and legal risk.

Rising Legal Expectations on Employers

Tribunal claims, employee awareness of rights, and regulatory scrutiny remain high. Common risk areas include:

• Contracts and employee handbooks not reflecting current law

• Poor handling of sickness absence and mental health matters

• Failure to make reasonable adjustments

• Weak disciplinary and grievance procedures

• Informal or inconsistent management practices

Employees increasingly understand their rights, and mistakes — even unintentional — can lead to formal complaints or legal action.

Key Areas Employers Should Review

To reduce legal exposure, businesses should ensure they have:

• Up-to-date employment contracts and HR policies

• Clear disciplinary, grievance, and performance procedures

• Fair and lawful sickness absence management processes

• Legally compliant redundancy and restructuring frameworks

• Robust onboarding and probation systems

• Manager training on employment law and people management

The Cost of Getting It Wrong

Employment disputes can lead to financial penalties, legal fees, management disruption, and reputational harm. Proactive HR support helps prevent issues before they escalate, saving time, cost, and stress.

Comment from Matthew Chilcott, Owner – Consensus HR:

“Employment law continues to evolve, and many claims arise simply because policies, contracts, or management practices have not kept pace with change. Regular reviews, manager training, and proactive HR support are essential. Taking action early is always more effective — and far less costly — than responding once an issue has escalated.”

Conclusion

Employers that take a proactive approach to HR and employment law place themselves in a stronger position to manage people effectively and avoid legal risk. Regular policy reviews, manager training, and professional HR support are essential to maintaining compliance in 2026.

Consensus HR provides practical, legally compliant HR and employment law support to help businesses stay protected and confident in their people management decisions.