What Your HR in 2027 Needs to Look Like
If you are making plans for your business in 2027, your people need to be part of them.
Next year is not one to muddle through with outdated contracts or managers making difficult people decisions on the fly.
Employment law is changing. Some of those changes take effect from 1 January. Others are expected throughout 2027. And together they make getting the basics right more important than ever.
Here are five things we would put on your HR plan.
1. Get better at dealing with problems early
For dismissals from 1 January 2027, employees will only need six months’ service to claim unfair dismissal. The current two year qualifying period is being cut significantly.
The limit on how much a tribunal can award for unfair dismissal is also being removed.
You can still dismiss someone who is not performing or is not right for the business. But you will need to be far more careful about how you reach that decision and the process you follow.
Put it on your plan: Review how you currently deal with poor performance and conduct issues. Make sure your managers know what to do when a problem first appears, rather than waiting until they want someone gone.
2. Review your contracts and policies
A lot has changed during 2026, and more is coming in 2027.
If your contracts, handbook or HR policies have not been reviewed recently, now is a good time to do it.
Pay particular attention to probation periods and dismissal procedures. If you have historically treated the first two years of employment as a relatively low risk period, that approach needs to change.
Contract changes need care too. From March 2027, dismissing someone to force through changes to things like pay, hours or holiday will be automatically unfair in most cases.
Further changes are due during 2027. Bereavement leave, including pregnancy loss, is expected from April. Flexible working changes and stronger protections for pregnant employees and new mothers are expected from October.
Put it on your plan: Schedule a review of your contracts and policies before the start of the year. Check them again as further changes come into force, because dates can move.
3. Make managers part of your HR plan
You can have excellent policies sitting in a folder somewhere. They will not protect you if your managers do not follow them.
Managers are often the people handling absence and performance problems. They are also the people employees speak to when something is not right.
That means one badly handled conversation or inconsistent decision can quickly turn a manageable issue into a much bigger one.
Put it on your plan: Identify where your managers need more support. Give them clear processes to follow and make sure they know when it is time to ask for HR advice.
4. Look at how predictable work is for your team
Further changes are expected around guaranteed hours. New rights around shift notice and payment for cancelled or changed shifts are also on the way, although the dates have not yet been confirmed.
These will matter most if you rely on zero hours contracts or regularly changing rotas.
It is worth reviewing how you manage working patterns before the new rules arrive.
Put it on your plan: Look at who works variable hours and how shifts are currently allocated. Check how much notice people normally receive. That will show you where you may need to make changes once the final rules and dates are confirmed.
5. Put some dates in the diary
HR tends to become urgent when something goes wrong.
Someone resigns. A grievance lands in your inbox. A manager wants to dismiss someone tomorrow.
A simple HR calendar can prevent a lot of that firefighting.
Schedule your policy reviews throughout the year. Set dates for manager training and make sure probation periods are reviewed before they expire.
It also gives you a regular chance to check whether any new employment law changes affect your business.
Put it on your plan: Create a simple HR calendar for 2027. Decide what needs doing, who is responsible and when you are going to review it.
Start planning now
2027 will bring significant changes for employers.
Start with the areas that create the biggest risk in your business. Get your foundations right and give your managers the support they need. Then keep reviewing as the year progresses.
If you are not sure what needs to change before 2027, an HR review is a good place to start. We can look at what you already have in place, identify the gaps and help you build a practical plan for the year ahead.
Get in touch for a confidential chat today.
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