Contracts do they need updating?

Contracts do they need updating?

The answer is yes!


A Practical Guide for UK Employers

2026 marks the most significant shift in UK employment law in over a decade. As the Employment Rights Act 2025 begins to take effect, employers across the country are being urged to review and update their employment contracts, policies, and onboarding documentation to remain compliant.

For many organisations—especially SMEs—this isn’t optional. Several of the new statutory rights coming into force directly affect contractual terms, and outdated wording could expose employers to avoidable risk.

This article outlines the key changes taking effect in 2026, why they matter, and what employers should be doing now to prepare.


What’s Changing in 2026?

The Employment Rights Act 2025 received Royal Assent in December 2025, with major reforms rolling out throughout 2026 and into 2027. Several of these changes require employers to update their contracts and HR documentation.

1. Statutory Sick Pay (SSP) Reforms

From April 2026, SSP becomes payable from day one of sickness absence, removing the current three waiting days. The Lower Earnings Limit is also being abolished, bringing around 1.3 million additional workers into eligibility. 

Any contract or policy referencing old SSP rules will need updating to avoid contradictions with statutory rights.

2. Day-One Rights for Paternity and Parental Leave

From April 2026, paternity leave and unpaid parental leave become day‑one rights, removing the previous 26‑week and one‑year qualifying periods.

This change affects:

  • Employment contracts
  • Family leave policies
  • Onboarding documentation
  • Workforce planning processes

3. Establishment of the Fair Work Agency

A new enforcement body—the Fair Work Agency—launches in April 2026, consolidating oversight of minimum wage, holiday pay, and SSP compliance. 

This signals a shift toward more proactive enforcement, meaning outdated contracts could attract scrutiny.

4. Strengthened Protections Against Harassment

Employers now have a reinforced duty to prevent workplace sexual harassment, requiring updated policies and clearer contractual expectations. 

5. National Living Wage Increase

The National Living Wage rises to £12.71 per hour from April 2026. If pay rates are written into contracts, they must be updated accordingly. 


Why Employers Must Update Their Contracts

Outdated contracts create three major risks:

  • Legal non‑compliance
    : Any clause contradicting statutory rights becomes unenforceable.
  • Employee relations issues
    : Conflicting documents cause confusion and erode trust.
  • Enforcement exposure
    : With the Fair Work Agency’s expanded powers, employers relying on old templates are more vulnerable to investigation.

Sprintlaw highlights that one of the biggest traps for small employers in 2026 is continuing to use outdated contract templates that no longer reflect current law. 


What Employers Should Update Now

A comprehensive review should include:

Employment Contracts

  • Sick pay clauses
  • Family leave eligibility
  • Pay and working hours
  • References to qualifying periods
  • Any outdated statutory references

Employee Handbook

  • Absence management
  • Family leave policies
  • Conduct and harassment policies
  • Flexible working processes

Onboarding Documentation

  • Offer letters
  • Day‑one rights summaries
  • Induction materials

Internal Processes

  • Manager training
  • Payroll configuration
  • Leave approval workflows

How Motion HR Supports Employers Through the 2026 Changes

At Motion HR, we help organisations stay compliant, confident, and protected. Our support includes:

  • Full contract and handbook audits
  • Updated, legally compliant contract templates
  • Bespoke policy drafting
  • Manager training on the new rules
  • Ongoing HR advisory support

The 2026 reforms are wide‑ranging, but with the right guidance, they don’t need to be overwhelming. Updating your contracts now ensures your business is protected before the changes take effect.


Why ER Training is Essential

Overview

Employee relations training for managers equips leaders with the skills to prevent, identify, and resolve workplace issues fairly and legally. Good training reduces risk, improves engagement, and strengthens trust between managers and teams. Evidence shows that positive employee relations contribute to better business outcomes and workforce stability.


Why Training Matters

Legal compliance and risk reduction. Managers who understand fair process, documentation standards, and employment law are less likely to expose the business to tribunal claims or regulatory action. Clear, consistent investigations and disciplinary processes are central to defensible decision making.

Early intervention and prevention. Trained managers spot early signs of conflict, absence, or performance decline and take proportionate action before issues escalate. This reduces disruption, protects morale, and preserves productivity. C

Trust and fairness. When managers apply consistent, transparent processes, employees feel heard and treated fairly. That trust lowers grievance rates and supports retention.


Core Skills to Teach Managers

  • Conducting investigations — planning scope, gathering evidence, interviewing witnesses, and writing factual reports.
  • Running fair disciplinaries and grievances — applying policy, managing hearings, and documenting outcomes.
  • Difficult conversations and performance management — coaching, setting clear expectations, and managing capability fairly.
  • Union and collective relations basics — engaging constructively with representatives where relevant.
  • Record keeping and data handling — secure, accurate notes that support decisions and protect confidentiality.

Business Benefits

  • Lower legal and financial risk through consistent, evidence‑based processes.
  • Faster resolution of issues and less operational disruption.
  • Improved manager confidence and capability, reducing reliance on HR for routine casework.
  • Stronger employee engagement and retention driven by perceived fairness and clarity.

How Motion HR Can Help Your Business

Tailored training for managers — we design short, practical modules focused on the real issues small and medium employers face: investigations, disciplinaries, absence management, and union engagement. Training is scenario‑based and role‑specific so managers practise the exact conversations and paperwork they will use at work.

Practical toolkits and templates — each course includes investigation checklists, witness interview guides, hearing scripts, and standardised outcome letters to ensure consistent application across sites.

On‑the‑job coaching and case support — Motion HR offers follow‑up coaching and on‑call support for live cases so managers can apply learning with confidence and get immediate HR input when needed.

Compliance and best practice alignment — our content is grounded in current UK guidance and employment law, helping you reduce tribunal risk and demonstrate a reasonable process. B

Flexible delivery — half‑day workshops, virtual sessions, or blended programmes with e‑learning and practical clinics to suit busy operational schedules.


Next Steps

Start with a short audit of manager capability and recent case trends. We will then propose a focused training programme, a rollout plan, and measurable success criteria such as reduced grievance rates, faster case resolution, and improved manager confidence.

Tell me which three manager groups you want to prioritise and I will draft a tailored training outline.

ER Training

Many business whether large corporate or SME businesses need trained managers to deal with ER matters such as disciplinaries, grievances, appeals and investigations. Investigations need to be carried fairly and correctly, many tribunal cases are won due to poor investigations. I offer onsite training for managers. My onsite courses include training on the following topics :

  • Investigations
  • how to hold a fair disciplinary
  • how to hear an appeal, up to tribunal
  • how to conduct a grievance hearing
  • the importance of probation reviews and how to implement
  • capability including performance and ill health
  • wellbeing and welfare meetings
  • dealing with absence if the employee is on long term sick

Coming to your business property keeps your employees engaged as they are familiar with their environment and it keeps the costs to a minimum. My course materials can be adapted to suit the requirement of your business. You would pay a day rate and up to 8 people can attend the training session. All I need is visual equipment to go through the training.

My course includes a booklet from the training session, an interactive session as well as a quiz at the end to test their knowledge, interested? Please give me a call or email

Why a Disciplinary Investigation Is Important

A disciplinary investigation is the formal fact‑finding process employers use to establish what happened when there is an allegation of misconduct or a serious performance issue. It is essential because it ensures decisions are fair, evidence‑based, and legally defensible, and because it protects the organisation, the individual involved, and the wider workforce.


Key Reasons

  • Ensures fairness and impartiality — an investigation gathers evidence from all sides so the employer can decide whether there is a case to answer and what action (if any) is appropriate.
  • Reduces legal risk — following a reasonable, documented investigation aligned to recognised guidance (for example the Acas Code) reduces the risk of unfair dismissal or discrimination claims at tribunal.
  • Protects organisational standards and safety — investigations help determine whether conduct or capability issues threaten safety, compliance, or business continuity and enable proportionate action.
  • Preserves evidence and credibility — timely, well‑documented investigations create a clear record that supports decisions and demonstrates consistent application of policy.
  • Supports employee wellbeing and trust — a fair process reassures other employees that issues are handled consistently and transparently, which helps maintain morale and engagement.

Legal and Practical Risks of Poor Investigations

  • Unfair dismissal and discrimination claims — tribunals assess whether employers followed fair procedures; inadequate investigations make adverse outcomes vulnerable to legal challenge.
  • Reputational and operational harm — mishandled cases can escalate conflict, damage relationships with unions or staff representatives, and disrupt operations.
  • Data protection and confidentiality breaches — careless handling of sensitive information can create additional legal exposure.

Key Payroll Changes for FY 2025/26

  • National Insurance (NI) increase: as of April 2025, new HR laws have come into effect, and employer national insurance contributions (NICs) have increased to 15% on salaries above £5,000. 
  • Student loan changes: the threshold for paying back student loans for Plan 1, Plan 2, and Plan 5 has increased from April 2025 until April 2026.
  • National Living Wage (NLW) and National Minimum Wage (NMW): in April 2025, rates increased for all age groups. 
  • Spring Budget 2025: in March, the Spring Forecast announced that planned tax rises were to go ahead, and business relief rates would be reduced. 
  • Mandatory payrolling of Benefits in Kind: the government has announced that, from April 2026, employers will have to report and pay Income Tax and Class 1A NICs in real-time on the majority of BiKs.

Fully-managed vs. part-managed payroll

One of the first decisions you’ll need to make when choosing a payroll service provider is how extensive you want the support to be. Essentially, businesses can choose between either fully-managed or part-managed payroll.

Here’s a quick summary of them both:

Fully-managed payroll

Every single aspect of your payroll is outsourced to your selected provider, encompassing everything from employee BACS payments to P60s. Some providers let you assign an employee to double check pay runs before they are submitted, but clients have little involvement.

Part-managed payroll

The processes are split up, with some of your payroll processes managed in-house while others are outsourced. Usually, the more complex, time-consuming processes like end of year filing or HMRC reporting get outsourced. Simpler day-to-day tasks like submitting pay-runs are actioned in-house.

Employment Law Changes 2025

We all know the Employment Rights bill is slowing increasing and improving the rights to all employees within the UK, this might be seen as more admin for the employer but it should make managing our teams more effiicent.

Here’s a breakdown of how the Employment Rights Bill (ERB) will be implemented across the UK, based on the government’s official roadmap and recent updates2:

📅 Implementation Timeline

PhaseDateKey Measures
Royal AssentAutumn 2025Bill becomes law; limited measures (e.g. repeal of trade union restrictions) take effect two months later
  • | Phase 1 | April 2026 |
  • Statutory Sick Pay from day one
  • Simplified trade union recognition
  • Doubling protective awards for redundancy consultation failures
  • Creation of the Fair Work Agency |
  • | Phase 2 | October 2026 |
  • Stronger workplace harassment protections
  • Restrictions on fire-and-rehire practices
  • Expanded parental leave rights |
  • | Phase 3 | 2027 |
  • Day-one unfair dismissal rights
  • Protections for zero-hours workers (e.g. right to request predictable hours, compensation for cancelled shifts)
  • Flexible working rights from day one |

🛡️ Key Worker Protections

  • Zero-Hours Contracts: Employers must offer guaranteed hours based on average work over 12 weeks.
  • Fair Tips: All tips and service charges must be passed to workers without deductions.
  • Pregnancy & Parental Leave: Enhanced redundancy protections and clearer rights for returning parents.
  • Dismissal Reform: Employers must follow fair procedures from day one, even during probation.

🏢 Employer Responsibilities

  • Update contracts and HR policies to reflect new statutory rights.
  • Prepare payroll systems for SSP changes.
  • Audit zero-hours and agency worker arrangements.
  • Train managers on fair dismissal and flexible working procedures.

Would you like help preparing a checklist for your business or understanding how these changes might affect your employment contracts or how to train your managers? I am here to help.

email us today : enquiries@motionhr.co.uk

Culture

It is often questioned what is business culture? What breeds a positive culture in the working place, what causes a toxic culture. There are many factors to each segment but real culture starts at the top. If you hear a business has a negative or toxic culture, then perhaps the directors need to look within themselves to understand what the reasons could be. Culture can be better described at the vibe in the workplace.

Happiness at work drives success, a factory floor operative that is happy with produce better quality goods than an operative who feels undervalued. Creating a harmonious working environment comes from many factors, some questions you should ask

  • How are they treated by line manager?
  • Does the company focus on profit or quality?
  • Do the directors communicate with the operatives on a regular basis?
  • Are they rewarded adequately, including an overtime premium?
  • How much overtime are they working?
  • Is the shift pattern suitable?
  • What is the sites rolling 12 month turnover?
  • What is the site absenteeism percentage?
  • What are the company values?

When answering these questions you will start to see where the culture is heading.

Business culture—often referred to as company or corporate culture—is the invisible force that shapes how an organisation operates, interacts, and grows. It’s not just about perks or dress codes; it’s the shared values, beliefs, and behaviors that define the character of a company.

🧭 What Is Business Culture?

Business culture is the collective personality of a company. It includes:

  • Values and Beliefs: What the company stands for (e.g., innovation, integrity, customer focus).
  • Norms and Behaviors: How employees interact, make decisions, and solve problems.
  • Leadership Style: The tone set by leaders—whether collaborative, authoritative, or laissez-faire.
  • Communication Practices: How transparent, inclusive, and respectful internal communication is.
  • Work Environment: Physical and psychological aspects, including flexibility, safety, and wellbeing.

As Forbes puts it, company culture is “the living, breathing persona of your company,” and it’s often considered more important than strategy or operating models.

🚀 Why It Matters

A strong business culture can:

  • Boost employee engagement and morale
  • Improve productivity and innovation
  • Reduce turnover and absenteeism
  • Enhance customer satisfaction and brand reputation
  • Drive financial performance—companies with strong cultures often see significantly higher revenue growth

On the flip side, a toxic or unclear culture can lead to:

  • Disengagement
  • Poor leadership dynamics
  • High staff turnover
  • Increased stress and mental health issues

🛠️ How to Build a Positive Culture

Here are some strategies to shape and strengthen business culture:

  • Define Core Values: Make them clear, actionable, and lived—not just words on a wall.
  • Lead by Example: Leaders must embody the culture they want to see.
  • Foster Open Communication: Encourage feedback, transparency, and collaboration.
  • Invest in Wellbeing: Prioritize mental health, work-life balance, and safety.
  • Recognize and Reward: Celebrate behaviors that align with the company’s values.
  • Hire for Cultural Fit: Look beyond skills to ensure alignment with company ethos.

Would you like to explore examples of companies with strong cultures or dive into how to assess and improve your own workplace culture?