Most SME Employers Are Not Ready for the Next Stage of Employment Law Changes | Consensus HR in Herts & Beds
Why Waiting Until the Law Changes Could Leave Your Business Exposed
If there is one thing I have learnt throughout my career in Human Resources, it is that businesses rarely get into difficulty because they deliberately ignore Employment Law. More often, problems arise because employers are simply too busy running their business to keep up with the pace of change.
For many SMEs, people management sits alongside sales, finance, operations and customer service. HR often becomes something that is dealt with when a problem occurs rather than something that is proactively reviewed and developed.
Unfortunately, that approach is becoming increasingly risky.
Employment legislation continues to evolve, expectations from employees continue to grow and Employment Tribunals continue to expect employers to demonstrate that they have acted fairly, reasonably and consistently.
The businesses that will be best placed over the next few years will not necessarily be those with the biggest HR departments. They will be those that prepare now.
At Consensus HR, we work with businesses throughout Hertfordshire, Bedfordshire and across the UK to ensure they remain compliant, commercially focused and confident when managing their teams. Our philosophy has always been simple – prevention is better than cure.
Employment Law Never Stands Still
Many employers update their Employee Handbook once every few years, issue Contracts of Employment when someone joins the business and then assume everything is covered.
The reality is very different.
Employment legislation develops continuously through new Acts of Parliament, case law, Government guidance and updates to recognised best practice.
That means documentation, policies and management practices should also evolve.
Waiting until an issue arises before reviewing your documentation is rather like waiting until your car breaks down before arranging a service.
The damage may already have been done.
The Real Cost of Doing Nothing
Business owners often ask us:
“Do we really need to review our HR documentation if nothing has gone wrong?”
Our answer is always the same.
The best time to review your HR procedures is before something goes wrong.
A proactive review can identify issues such as:
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Outdated Contracts of Employment.
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Employee Handbooks that no longer reflect current legislation.
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Inconsistent disciplinary procedures.
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Managers lacking confidence when dealing with employee issues.
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Poor recruitment documentation.
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Inadequate probationary processes.
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Missing Right to Work records.
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Lack of documented performance management.
Each of these may appear relatively minor on its own.
Collectively, however, they can expose a business to significant financial and operational risk.
Good HR Is About Supporting Business Growth
One of the biggest misconceptions we still encounter is that HR only becomes important when an employee raises a grievance or a disciplinary issue arises.
In reality, good HR supports every stage of the employee lifecycle.
From recruitment through to induction, training, performance management, development, wellbeing and succession planning, effective HR helps businesses build stronger, more productive teams.
It also gives managers confidence.
Managers who understand company procedures, know where to find guidance and have access to professional HR support are far more likely to deal with issues promptly, fairly and consistently.
Why Documentation Matters More Than Ever
Documentation should never be seen as paperwork for paperwork’s sake.
It provides clarity.
It creates consistency.
Most importantly, it demonstrates that employees have been treated fairly.
Every business should ensure it has up-to-date:
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Contracts of Employment.
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Employee Handbook.
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Disciplinary Procedure.
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Grievance Procedure.
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Sickness Absence Procedure.
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Flexible Working Policy.
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Family Friendly Policies.
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Equality, Diversity and Inclusion Policy.
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Health and Safety documentation.
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Performance management processes.
Documentation should also reflect how the business actually operates.
Policies that sit on a shelf gathering dust provide little protection if managers are not following them in practice.
Preparing Managers Is Just as Important
Even the best documentation cannot replace confident, capable managers.
Many managers receive little or no formal management training before being expected to recruit staff, manage performance, deal with absence, conduct investigations or handle difficult conversations.
That places unnecessary pressure on both the manager and the business.
At Consensus HR, we regularly deliver practical management development covering:
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Conducting difficult conversations.
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Performance management.
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Managing probationary periods.
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Absence management.
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Recruitment interviewing.
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Equality and diversity.
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Documentation and record keeping.
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Employment Law updates.
Investing in managers is one of the most effective ways to reduce people problems before they escalate.
Why Our Retained Clients Stay Ahead
One of the key benefits of becoming a retained client of Consensus HR is that you are not left trying to interpret changes in Employment Law on your own.
Where clients have purchased their Employee Handbook through Consensus HR and remain on our retained HR service, we update their handbook as legislation changes and issue revised versions together with practical guidance notes.
This helps ensure managers understand what has changed, employees receive consistent information and businesses remain compliant.
It also means that documentation evolves alongside the law rather than becoming outdated.
That level of proactive support gives business owners confidence that they are protecting both their organisation and their employees.
Employment Law Update
The Employment Rights Act 2025 will continue to introduce significant changes over the coming months and years.
One of the most widely discussed developments is the planned reduction in the qualifying period for ordinary unfair dismissal protection to six months from January 2027, subject to the legislation and commencement regulations taking effect as expected.
Whilst businesses should always act fairly regardless of an employee’s length of service, these changes reinforce the importance of:
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Effective recruitment.
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Well-managed probationary periods.
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Clear documentation.
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Regular review meetings.
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Manager training.
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Accurate record keeping.
Employers who prepare now are likely to find the transition significantly easier than those who wait until the changes are implemented.
Matthew Chilcott’s Comment
“Throughout my career I have always believed that the best HR is proactive rather than reactive. Whether I was leading HR within large organisations or supporting SMEs through Consensus HR, the businesses that achieved the greatest success were those that invested in good management, clear documentation and regular communication before problems arose. Our role is not simply to help clients deal with issues when they happen. It is to help prevent those issues from happening in the first place. That is exactly why so many of our retained clients tell us they value having an experienced HR partner just a phone call away.”
Matthew Chilcott
Owner – Consensus HR
Chartered FCIPD | ACEL | BA (Hons)
How Consensus HR Can Help
Whether you employ five people or five hundred, having professional HR support available can make a significant difference to the success of your business.
Consensus HR can assist with:
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HR Audits and HR Health Checks.
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Contracts of Employment.
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Employee Handbooks.
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Employment Law compliance.
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Recruitment support.
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Performance management.
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Probationary management.
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Investigation and disciplinary guidance.
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Absence management.
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Manager training.
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Monthly retained HR support.
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Employment Tribunal risk reduction.
Our aim is simple: to help businesses take the pain out of managing people whilst remaining legally compliant and commercially focused.
Book Your Complimentary HR Review
If you are unsure whether your Contracts of Employment, Employee Handbook or HR procedures remain up to date, why not arrange a complimentary HR review?
We will discuss your current arrangements, identify potential risks and explain how Consensus HR can support your business with practical, proactive HR solutions tailored to your organisation.
Contact Consensus HR
Telephone: 01438 576750
Email: [email protected]
Website: https://www.consensushr.com
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