The UK Employment Law Reset: What HR Leaders Need to Prepare for in 2026

As the UK labour market settles after years of disruption, employment law has rapidly moved back to the top of the HR agenda. Many organisations, particularly across South West England, are shifting their focus away from crisis response and toward long-term workforce stability, compliance and consistency.

For HR leaders, 2026 represents a significant reset. A transition from reactive decision-making towards clearer frameworks, strengthened governance and a more proactive people strategy.

This shift is being shaped by several key drivers:

• Evolving expectations around flexible working
• Strengthened employee rights and protections
• Increasing organisational focus on fairness, wellbeing and inclusion
• Rising demand for HR professionals with strong ER and legislative capability

Guidance from ACAS and the CIPD has made one thing clear: employment regulation is becoming more complex, not less. While many legal updates aim to enhance employee experience, applying these changes in practice can be challenging, especially for organisations without dedicated in-house HR specialists.

Why the South West Is Feeling the Pressure More Than Most

Across Devon, Somerset and Cornwall, SMEs make up the majority of employers. HR professionals in these organisations are often balancing:

• interpreting new legislation
• designing and updating policy
• supporting managers with ER concerns
• communicating change sensitively to employees

And often doing so alone, or as part of very small HR teams.

In close-knit professional communities such as the South West, reputational impact carries even greater weight. The way an organisation handles employee concerns, or manages compliance, can influence future hiring, retention and even customer relationships.

Employment law can no longer be seen purely as a compliance function. It now shapes:

• organisational culture
• employee trust
• leadership confidence
• external reputation

HR capability is increasingly viewed as a stabilising force, one that protects the organisation, empowers managers and gives employees confidence that they are being treated fairly and consistently.

The Skills HR Leaders Will Need Most in 2026

As organisations prepare for the next phase of employment law reform, the most in-demand HR strengths include:

1. Employee Relations Expertise

The ability to navigate conflict, coach managers and resolve complex cases with fairness and sensitivity.

2. Legislative Interpretation

Translating new legal requirements into pragmatic, people-centred policies that managers can apply confidently.

3. Change Leadership

Supporting leaders and employees through cultural or structural shifts and maintaining trust during transitions.

4. Workforce Governance

Ensuring documentation, process and policy stand up to scrutiny, particularly important for SME employers.

5. Communication & Influence

Helping leaders understand why changes matter and how they support organisational resilience.

What Organisations Should Prioritise Now

To prepare effectively for the 2026 employment law landscape, organisations across the South West should focus on:

• Reviewing and updating core HR policies
• Strengthening manager capability and confidence
• Ensuring HR has the capacity and skillset to manage greater complexity
• Investing in proactive HR support rather than reactive firefighting
• Building a culture that prioritises fairness, wellbeing and transparency

The organisations best positioned for 2026 will be those that see HR not simply as a compliance safeguard, but as a strategic partner driving long-term stability, culture and performance.