Business HR Record-Keeping Matters More Than Ever As Poor Workplace Decisions Get a Longer Shelf Life

HR record-keeping will matter more than ever as Employment law changes.

Employers have always needed to show that workplace decisions are fair and reasonable, that they followed appropriate processes, and that they have a clear record of what happened and why. However, several changes coming into force over the next few months will make those established principles even more significant in practice.

From October 2026, employees will have more time to bring most Employment Tribunal claims. Later that month, employers will face a stronger duty to prevent sexual harassment at work. Then, from January 2027, employees will gain ordinary unfair dismissal protection after just six months’ service, rather than two years. Taken together, these changes don’t create a new requirement for employers to follow fair and reasonable processes. They do, however, increase the importance of demonstrating that those processes were followed, potentially many months after the original decision was made. Good HR record-keeping will become even more important.

Employment Tribunal claims: a longer window

From 1 October 2026, the time limit for bringing most Employment Tribunal claims will increase from three months to six months. The change is intended to give employees and employers more time to resolve disputes internally or through conciliation, and to assess the merits of a potential claim. For employers, though, it also means workplace decisions may remain open to challenge for longer.

Six months can be a long time in a busy organisation. Managers change roles. Employees leave. Memories of conversations fade. If a decision about performance, conduct, absence, a grievance or dismissal is challenged months later, clear contemporaneous records can be invaluable in demonstrating what happened and why.

Unfair dismissal protection after six months

A further significant change takes effect on 1 January 2027, when the qualifying period for ordinary unfair dismissal protection will be reduced from two years to six months. The cap on compensatory awards for unfair dismissal will also be lifted. This doesn’t mean employers cannot dismiss an underperforming worker, or someone who isn’t right for a role. Fair dismissals will still be possible. But it does mean employers will have considerably less time before an employee acquires ordinary unfair dismissal protection.

That places much greater emphasis on those first six months.

Probation periods will matter more, and so should serve a genuine purpose, not merely appear as a clause in an employment contract. Expectations need to be clear, performance should be reviewed, and concerns should be raised promptly. If a six-month probation period ends with the first documented indication of a performance problem, employers may find themselves in a much more difficult position.

Now is therefore a good time to review recruitment, onboarding and probation processes, particularly where probation periods currently drift beyond six months or reviews routinely happen late.

Sexual harassment: prevention, not just response

We’ve been talking a lot recently about sexual harassment training. From 30 October 2026, employers will be required to take all reasonable steps to prevent sexual harassment of their employees. This significantly strengthens the current requirement to take reasonable steps. Employers will also have a new obligation not to permit third-party harassment of employees. The emphasis is on prevention, not simply responding appropriately after an incident.

Organisations should consider whether employees know how to raise concerns, whether managers know what to do when someone approaches them, and if training fits the organisation and the risks its employees actually face. For example, an office-based organisation encounters different risks from a business whose employees regularly work with customers, clients, contractors or members of the public.

The common thread: HR record-keeping matters

Fair and reasonable decision-making, consistent processes and good record-keeping have always been central to sound HR practice. However, these reforms change the context in which employers may need to demonstrate them.

Ahead of the changes, employers should consider reviewing:

• Probation and performance-review processes, particularly during an employee’s first six months;
• How managers document performance, conduct and absence concerns;
• Grievance and disciplinary procedures;
• Harassment and sexual-harassment policies and risk assessments;
• Routes available to employees for reporting concerns;
• Manager and employee training; and
• How HR retains and accesses records when managers or employees leave.

The objective is to create a clear, contemporaneous record that demonstrates fair and considered decision-making.

Don’t wait for a problem to test your processes

Employment law reform can easily become a list of dates, regulations and policies to update. The more useful question for employers is: “If one of our workplace decisions were challenged six months from now, could we clearly demonstrate what happened and why?” If the answer is uncertain, now is the time to find the gaps.

The forthcoming reforms may change the timeframe and increase employers’ exposure, but the underlying principle remains the same: make fair and reasonable decisions, follow appropriate processes and be able to demonstrate that you did.

If you need any further information or advice, including details of the training sessions we are running, please contact us at hello@spotlighthr.co.uk or call us on 01424 864144.

Spotlight HR is a strategic partner to many businesses across London, East Sussex and the UK. From individual outsourced projects to assisting your in-house function, our experienced team specialises in HR services for SMEs.

Our Founder and CEO, Kimberly Bradshaw, also supports local businesses as a Specialist Advisor in HR & Organisational Development through the Time to Grow Specialist Business Support Programme, funded by the Sussex & Brighton Strategic Authority, East Sussex County Council and the UK Government.