If HR has felt noisy lately, that is because it is. Employers are hearing about law changes, growing expectations around workplace culture, rising absence levels and more pressure on managers to get people issues right. For many small and medium sized businesses, it can feel like a lot to keep up with.
The important thing to know is this. Not every change has happened yet, but this is not the time to sit back. The Employment Rights Act 2025 is now law, with changes being introduced in stages across 2026 and 2027. Acas is already advising employers to prepare, understand the timeline and review their people processes now.
For SMEs especially, this is the gap between hearing about change and being properly ready for it. That gap is where problems grow. Policies become outdated, managers make inconsistent decisions and businesses end up reacting under pressure instead of leading well from the start. That is why 2026 needs to be treated as a preparation year, not a waiting year.
The law may be changing in stages but employee expectations are already here
One of the biggest mistakes employers make is assuming they only need to act when a law officially comes into force. In reality, expectations shift much faster than legislation. Employees already expect fairer conversations, clearer communication, more flexibility and workplaces that take wellbeing and behaviour seriously. The businesses that get ahead now will find it much easier to adapt as the legal timetable moves on.
Acas has highlighted that flexible working law will be amended again in 2027 under the Employment Rights Act 2025. Current Acas guidance already says employers must accept a statutory request unless there is a genuine business reason not to, consult the employee before making a decision unless accepting in full, and reach a final decision including any appeal within two months. That means flexible working is no longer something employers can treat casually or inconsistently.
For employers, this is about more than a policy document. It is about whether managers know how to have these conversations properly. A weak process or a rushed response can create frustration, damage trust and increase the chance of disputes.
Absence is now a business issue, not just an admin task
If absence is still being tracked in a spreadsheet with little follow up, this is the moment to look at it properly. The latest CIPD data found that UK employees were off sick for an average of 9.4 days over the previous 12 months, up from 7.8 days in 2023 and well above pre pandemic levels. That tells us absence is not a side issue. It is one of the clearest signals of what is happening in a workforce.
Too often, businesses focus only on recording time off rather than asking better questions. Are there repeat patterns? Are managers following up consistently? Are return to work conversations happening? Are people struggling with workload, stress or management issues? Without that wider view, the same problems keep coming back.
Good absence management is not about policing people. It is about spotting issues early, responding fairly and making sure the business has a clear process that managers can follow with confidence. When absence is rising nationally, the employers who manage it well will protect both productivity and people.
Manager training is no longer optional
A lot of HR problems are not really policy problems. They are manager problems.
A business can have a handbook, templates and procedures in place, but if a manager avoids difficult conversations, handles issues inconsistently or says the wrong thing at the wrong time, the damage is done. That is why manager capability has become one of the most important parts of HR preparation in 2026. This is an inference based on the increasing legal complexity set out by Acas and government implementation timelines.
Managers are often expected to deal with poor performance, flexible working requests, absence concerns, conduct issues and wellbeing conversations without much real training. That leaves businesses exposed. It also leaves managers stressed, unsure and more likely to either overreact or avoid taking action altogether.
The strongest businesses are not the ones with the longest policies. They are the ones where managers know how to apply them in real life.
Prevention matters more than ever
Workplace culture is also under sharper focus. Government guidance published in February 2026 sets out that a new employer duty to take all reasonable steps to prevent sexual harassment is expected to come into force in October 2026, alongside an obligation not to permit third party harassment of employees.
That should be a wake up call for employers who still see harassment prevention as a one off policy exercise. Prevention means more than having a document saved somewhere. It means training, communication, reporting routes, leadership behaviour and clear action when issues arise.
The businesses that leave this until the last minute are likely to find themselves rushing. The ones that act now can review risk areas, build manager confidence and create a safer working environment long before the deadline arrives.
So what should employers be doing now
This is the point where practical action matters most.
Right now, employers should be reviewing policies that affect day to day people management, especially flexible working, absence, performance, disciplinary processes and harassment prevention. Acas is already pointing employers towards the coming changes and the standards expected in current practice.
They should also be looking at whether managers are equipped to handle real conversations, not just read a policy. A technically correct process can still go badly wrong if the person leading it lacks confidence, consistency or judgement. That is often where SMEs need the most support. This is an inference drawn from the Acas guidance emphasising consultation, reasonableness and fair handling across several areas.
And finally, businesses should be asking themselves a simple question. If an employee raised a concern tomorrow about absence, poor performance, flexibility or behaviour, would we know exactly what to do and would every manager handle it in the same way?
If the answer is no, there is work to do.
Final thought
HR in 2026 is not just about compliance. It is about readiness.
The legal changes matter, of course. But what matters just as much is whether a business has the structure, confidence and consistency to deal with people issues well. The employers who use this year to tighten up processes, train managers and act early will be in a far stronger position than the ones who wait until a problem lands on their desk.
That is where good HR support makes a real difference. Not by making things more complicated, but by making them clearer, fairer and easier to manage before they become bigger problems.
References for this blog:
Acas. (2025) Acas welcomes Royal Assent for new Employment Rights Act.
Acas. (2026) Employment Rights Act 2025.
Acas. (2026) Statutory flexible working requests.
Acas. (2026) The right to request. Statutory flexible working requests.
Acas. (2026) Considering a request. Statutory flexible working requests.
Acas. (2024) Code of Practice on requests for flexible working.
CIPD. (2025) Workplace absence levels soar to nearly two working weeks per employee each year.
CIPD. (2025) Health and wellbeing at work 2025.
Personnel Today. (2025) Lloyds Banking Group to target underperformers for job cuts.
