One of the most significant changes coming from the Employment Rights Act 2025 is the reduction of the qualifying period for unfair dismissal from two years to just six months. Employees won’t have day one rights as that proposal was dropped before the Bill became law, but from January 2027, any employee with six months’ continuous service will be able to bring an unfair dismissal claim. This doesn’t mean you can never dismiss someone in their first six months. But it does mean that probation periods and how you use them, are about to become more important than ever.

What’s changing and when?

From 1 January 2027, employees will have the right to claim unfair dismissal after just six months’ service, down from the current two years. The concept of a formal “statutory probation period” with a lighter-touch dismissal process was discussed during the Bill’s passage through Parliament, but it was ultimately dropped. What we’re left with is a shorter qualifying period and no special procedural framework for early dismissals.

There’s an important practical point here: anyone you employ from July 2026 onwards will already have six months’ service by January 2027, meaning they’ll gain unfair dismissal rights almost immediately when the change comes into force.

There’s also a further change that received less attention but matters significantly: the cap on unfair dismissal compensation is being removed. Currently, awards are capped at £118,223 (or 52 weeks’ gross pay if lower). Once the cap goes, the financial exposure from a poorly handled dismissal, at any stage, increases considerably.

Why this matters for small businesses right now

You have until January 2027 to get your approach to probation in order, but effectively less, because anyone starting from mid-2026 is already in scope. The businesses that will struggle are those that currently treat probation as a formality rather than a genuine assessment process. If your current approach is: hire someone, do little for six months, then confirm or extend, you need to rethink it now. And with the compensation cap being removed, the stakes of getting a dismissal wrong are higher than they’ve ever been.

What does a good probation period look like?

Clear objectives from day one
When someone starts, they should know exactly what they need to achieve during their probation. Not vague expectations, but specific, measurable outcomes. This makes the assessment process fair and defensible.

Regular check-ins
Don’t wait until the end of the probation period to tell someone they’re not meeting expectations. Hold structured reviews, ideally at one month, three months, and before the end of probation, and document them. If concerns arise, raise them early.

Written records
If you’re considering not confirming someone’s employment, you need to be able to show that concerns were raised, the employee was given the opportunity to respond, and that a fair process was followed. Without documentation, that’s very difficult to demonstrate.

A clear decision
Probation should end with a decision; pass, extend (with a clear reason and timeframe), or not confirmed. Letting it drift without a formal outcome creates confusion and risk.

What about extending probation?

You can still extend a probation period, but you need to think carefully about what that extension is actually achieving. If an employee is approaching six months and you still have unresolved concerns, the better approach is usually to address those concerns properly within the timeframe and not push the probation out and hope the situation resolves itself. Once an employee reaches six months’ service, unfair dismissal protection applies regardless of whether they’ve formally “passed” their probation.

What Should You Do Now?

• Review your current probation process and ask whether it would stand up to scrutiny. Consider whether a three or four month probationary period length would be more appropriate.
• Make sure objectives are set and documented at the start of employment.
• Train your managers on how to have early conversations about performance and conduct.
• Check that your contracts and policies reflect how you actually run probation in practice.
• If you’re employing people from mid-2026 onwards, treat their probation as already operating under the new rules.
• Factor in the removal of the compensation cap, a poorly handled dismissal will carry greater financial risk than it does today.

The January 2027 date might feel far away, but for anyone hiring now, the clock is already running. Getting probation right has always mattered. From 2027, the consequences of getting it wrong will be significantly greater.
​

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​Artificial intelligence is no longer something that only large corporations need to think about. Right now, your employees are very likely using AI tools, like ChatGPT, Copilot, Gemini and others, in their day-to-day work. Some will be using it brilliantly. Others may be sharing sensitive information without realising the risks. As a small business owner, this is something you need to get ahead of.

The reality of AI at work right now

Research suggests that a significant proportion of employees are using AI tools at work without telling their employer. It's not necessarily deliberate secrecy, often people just don't think of it as any different to using Google. But the implications can be quite different.

The risks include:

• Data and confidentiality - employees sharing sensitive client information, business data or personal details with AI tools that may store or use that data
• Accuracy - AI can produce confident-sounding but incorrect information, which could cause problems if acted upon without checking
• Intellectual property - content generated by AI may have copyright complications depending on how it's used
• Fairness and bias - AI used in recruitment or performance management can inadvertently introduce bias if not carefully managed

This doesn't mean you should ban it

The instinct some employers have is to ban AI tools entirely. In most cases, this is the wrong approach and largely unenforceable. AI tools are genuinely useful. They can save your employees hours of time on drafting, research, summarising and planning. The better approach is to set clear guidelines for how AI should and shouldn't be used.

What should you put in place?

1. An AI Use Policy
A clear, one or two page policy covering: what AI tools employees are permitted to use; what information must never be shared with external AI tools; that AI-generated content must be reviewed before being used externally; and that employees remain responsible for the accuracy of their work, regardless of whether AI was used.

2. A conversation with your team
Before circulating a policy, have an open conversation. Ask people what tools they're using and how. This signals that you're approaching this collaboratively rather than punitively.

3. Update relevant contracts and policies
If you have a data protection or confidentiality policy, it should now reference AI tools specifically. If you don't have one, this is a good time to get one in place.

What about using AI to manage people?

Using AI to automatically make or heavily influence decisions about hiring, performance, pay or dismissal carries significant legal and ethical risks. Under UK data protection law, employees have rights around automated decision-making. If AI is influencing significant decisions about them, there are obligations around transparency and the right to human review. Take advice before using AI in any people management decisions.

The opportunity for small businesses

Handled well, AI is a genuine leveller for small businesses. Tools that were previously only available to large organisations with big budgets are now accessible to everyone. Keane Assist is a great example. It’s a closed AI-powered HR support tool built specifically around UK employment law, designed to give small business owners the kind of HR guidance that used to require an expensive consultant on speed dial.

A quick summary of what to do:

• Talk to your team about how they're currently using AI
• Put a simple AI use policy in place
• Update your data protection and confidentiality policies
• Don't use AI to make important people decisions without human review
• Embrace the productivity benefits - with sensible guardrails

Get in touch with Keane HR: www.keanehr.co.uk/contact-us.html  |  Try Keane Assist — AI-powered HR guidance: www.keane-assist.com

Return to office (RTO) is one of the most talked-about workplace topics right now. Large employers have made headlines with full-time office mandates. But for small and medium-sized businesses, the decision is rarely so black and white and the stakes of getting it wrong are very real.
​
Why are employers pushing for a return?

There are genuine business reasons many employers want their people back; collaboration, culture, mentoring and the feeling that things work better when people are in the same room. But the data tells a complicated story. Research consistently shows that the majority of employees value flexibility highly, with many saying remote or hybrid working is now a non-negotiable when considering a job.

Can you legally require employees to return?

In most cases, yes, but it depends on what was agreed. If remote or hybrid working was written into an employee's contract, you cannot simply change that without their agreement. Doing so unilaterally could be a breach of contract and could lead to a constructive dismissal claim.

How to handle It well:

1. Communicate before you decide
Before announcing any changes, talk to your team. Understand how they're working, what's going well, what isn't. People are far more likely to accept a change they've been consulted on.

2. Be clear about why
Vague reasons like 'it's better for the business' won't cut it. Be specific. Is it about collaboration? Client relationships? Onboarding? The more concrete your reasoning, the more credible it is.

3. Give adequate notice
People have built their lives around their current working arrangements. A minimum of four to eight weeks' notice feels reasonably sensible.

4. Consider a phased or hybrid approach
A full five-day office mandate is often unnecessary and disproportionate. Many businesses find that two or three anchor days per week achieves the collaboration benefits without the downsides of a full return.

5. Handle flexible working requests properly
Under the Employment Rights Act 2025, the flexible working process is becoming more stringent. If you receive a request to maintain hybrid or remote arrangements, you must follow the correct process and give clear, specific reasons if you decline.

6. Be aware of equality considerations
Some employees may have medical conditions, disabilities or caring responsibilities that make a full return genuinely difficult. Each situation needs individual consideration and blanket policies without regard for individual circumstances can lead to discrimination claims.

The retention risk Is real

In a tight labour market, flexibility is a significant part of your offer as an employer. If a competitor is offering hybrid working and you're not, you will lose people, particularly your best performers, who typically have the most options. This doesn't mean you have to offer unlimited remote working. But your approach needs to be thoughtful, proportionate and communicated well.

What If someone refuses to return?

If an employee refuses to comply with a reasonable and properly communicated return to office policy, you may be able to address this through your disciplinary process, but only if the request was reasonable, properly implemented and didn't conflict with their contractual terms. Before taking any formal action, seek HR advice.

​Get in touch with Keane HR: www.keanehr.co.uk/contact-us.html | Try Keane
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​One of the most immediate changes from the Employment Rights Act 2025 has just come into force. From 6 April 2026, Statutory Sick Pay (SSP) must be paid from the very first day an employee is off sick, with no more three-day waiting period. If you haven't updated your sickness absence policy yet, now is the time.

What's actually changed?

Previously, employees had to be off sick for four days in a row before SSP kicked in, and the first three days, called 'waiting days', were unpaid. This rule has now been scrapped.

From 6 April 2026:

• SSP is payable from day one of sickness absence
• There are no more waiting days
• The lower earnings limit has been removed (which means lower-paid workers now qualify for SSP)
• For workers below the old earnings limit, SSP is paid at 80% of average weekly earnings or £123.25 per week, whichever is lower​

What does this mean in practice?

Let's say an employee calls in sick on a Monday and returns to work on Wednesday,  two days off. Under the old rules, you wouldn't have paid SSP at all. Under the new rules, you owe them SSP for both days. For longer absences, the impact is slightly smaller, but across a year, if you have a team of any size, this adds up.

What do you need to do?

1. Update your sickness absence policy
Your policy almost certainly references the three waiting days. This needs updating immediately. Any policy that references the old rules is now out of date.

2. Communicate the change to your employees
Your staff have a right to know their entitlements have changed. A brief note via email, a notice board update, or your next team meeting is all it takes.

3. Check your payroll process
Make sure whoever processes your payroll knows about this change and is applying it correctly from the first day of any sickness absence.

4. Review your company sick pay scheme
If you offer company sick pay on top of SSP, check how your policy is worded. Some policies reference the waiting days as part of their calculation.

5. Review your self-certification process
Employees can self-certify illness for up to seven days. You can only request a fit note after seven calendar days of absence. Make sure your process is clear and consistent.

A note on absence management

With SSP now payable from day one, some employers worry this will lead to an increase in short-term absence. The best defence against this is not a corrective policy, but a consistent and fair return-to-work process. A brief, supportive conversation with every employee when they return from any absence is one of the most effective tools for managing sickness absence without falling foul of employment law.

Quick Checklist:
​

• Updated sickness absence policy to remove waiting days
• Communicated change to all employees
• Updated payroll process to pay SSP from day one
• Reviewed company sick pay scheme wording
• Clear return-to-work process in place

Get in touch with Keane HR: www.keanehr.co.uk/contact-us.html  |  Try Keane Assist free: www.keane-assist.com

If you're running a small business, HR can feel like a minefield. One wrong move with a disciplinary, a redundancy or a contract and you could be facing a tribunal. So it makes sense that you want proper support. But with so many options out there, how do you know which one is right for you?
In recent years, closed AI-powered HR chatbots have become a popular option for small businesses. But are they a replacement for a real HR consultant, or just a useful extra? Let's break it down.

What is an HR Consultant?
An HR consultant is an experienced HR professional who works with your business on either a retained or ad hoc basis. They can advise on specific situations, represent you in complex cases, carry out HR audits, write policies and handbooks and support you through things like redundancies or TUPE transfers.

A good HR consultant brings years of real-world experience and professional accreditation (such as CIPD qualification) to the table. They understand not just the letter of the law but the nuance of how situations play out in practice.

The downside? They cost more, aren't always available when you've just had a difficult conversation with an employee and for smaller or more straightforward queries, they can feel like overkill.

What is an HR Chatbot?
An HR chatbot is an AI-powered tool that answers your HR questions in plain English, any time of day or night. You type in your question "can I dismiss someone who is still in their probation period?" or "what do I need to include in a disciplinary letter?"  and it gives you a clear, practical answer based on UK employment law and HR best practice.

A good HR chatbot uses closed AI, is built specifically around UK law, kept up to date as legislation changes and designed for people who don't have an HR background. It's not Google. It's not a generic AI. It's focused entirely on helping you handle people matters properly.

The limitation? For complex, high-stakes situations like a tribunal claim, a sensitive redundancy programme or a discrimination case, you need a human in your corner.

So which one do you actually need?
The honest answer is, it depends on the situation.

An HR chatbot is ideal when you need to:

• Quickly understand your options before taking action
• Check whether a process you're following is compliant
• Get a template letter or document at short notice
• Answer a straightforward question outside of office hours
• Sense-check a decision before you make it

An HR consultant is the right choice when you need to:

• Handle a complex or high-risk employee relations case
• Go through a redundancy or restructure process
• Respond to a formal grievance or potential tribunal claim
• Build your HR foundations from scratch (handbooks, policies, contracts)
• Have someone in your corner who knows your business inside out

Can you use both?
Absolutely, and for many small businesses, this is the smartest approach. Think of an HR chatbot as your day-to-day HR companion. It handles the everyday questions, keeps you compliant on the small stuff and means you're not bothering your consultant (and paying their hourly rate) every time you need to check something straightforward.

Your HR consultant then becomes the expert you call on when things get complicated or when you need genuinely tailored advice for your specific situation. Together, they give you comprehensive HR support at a fraction of the cost of a full-time HR employee.

A real-world example
Imagine one of your employees starts taking a lot of short-term absences. You're not sure whether it's a performance issue, a wellbeing concern or something you need to formally address. With an HR chatbot, you can quickly find out what a Return to Work interview involves, what your legal obligations are around sickness absence and what the process looks like if things escalate. You can do this at 8pm, before your meeting with the employee the next morning.

If it then turns out the absences are related to a disability or a serious underlying condition, that's the point you pick up the phone to your HR consultant, because the situation now needs careful, personalised handling.

The bottom line
HR chatbots and HR consultants aren't in competition, they complement each other. For small businesses that can't justify a full-time HR hire, combining both gives you the coverage, confidence and cost-effectiveness you need.

​Try Keane Assist free for one month: www.keane-assist.com  |  Keane HR Consulting: www.keanehr.co.uk
​

If you've heard talk of the 'New Deal for Workers' and wondered what it actually means for your business, you're not alone. The Employment Rights Act 2025 is being described as the biggest overhaul of UK employment law in a generation and while most of the changes haven't kicked in yet, now is exactly the right time to understand what's coming and start preparing.

What is the Employment Rights Act 2025?

The Employment Rights Act 2025 (ERA) was the Labour government's flagship employment policy, promised within their first 100 days in office. It received Royal Assent (basically meaning it officially became law) on 18 December 2025. The changes won't all happen at once. The government has published a phased roadmap, with most reforms rolling out across 2026 and into 2027.

What's Changing in April 2026

Statutory Sick Pay (SSP) from day one
From April 2026, SSP is payable from the very first day of sickness absence. There's also no longer a lower earnings limit meaning even lower-paid workers will qualify. Update your sickness absence policy now so that it reflects these changes.

Day one rights to Paternity and Parental Leave
From April 2026, paternity leave and unpaid parental leave become day one rights. Review your contracts, policies and onboarding documents to reflect this change.

What's Changing in October 2026

Fire and rehire becomes much riskier
Dismissing and rehiring employees on worse terms will automatically become unfair dismissal in most cases. If you ever need to change employees' terms and conditions, you'll need proper consultation processes in place.

Tribunal Time Limits Double
Employees will have six months (instead of three) to bring most employment tribunal claims. Your processes and record-keeping need to be watertight. Document everything.


Harassment laws tightened
Employers will be required to take 'all reasonable steps' to prevent sexual harassment. Review your anti-harassment policies and make sure you have clear, documented processes for handling complaints.

What's Coming in 2027

The biggest headline change ‘day one unfair dismissal rights’ has been pushed back to January 2027. Other 2027 changes include zero hours contract reforms, strengthened protections for pregnant workers, bereavement leave as a day one right and tightened collective redundancy rules.

Your Action Plan 

Now if you haven’t already:

• Update your sickness absence policy to reflect day one SSP
• Review employment contracts and policies to reflect day one paternity and parental leave rights
• Make sure your offer letters and onboarding documents are also up to date

Before October 2026:

• Ensure your disciplinary, grievance and dismissal processes are properly documented
• Review your anti-harassment policy
• Start keeping thorough records of all employee related decisions and conversations

Before January 2027:

• Review your approach to probation periods, as these will become more important than ever
• If you use zero hours contracts, start thinking about how your working patterns might need to change
• Make sure any flexible working request processes are clearly documented

Get in touch with Keane HR: www.keanehr.co.uk/contact-us.html  |  Try Keane Assist free: www.keane-assist.com

​

What is Fire and Re-hire?

​Fire and re-hire, also known as dismissal and re-engagement, is a practice where employers terminate employees' contracts and offer them new contracts, often with different terms and conditions. This approach is typically used during restructuring or cost-cutting measures. However, it has generated  significant scrutiny due to its potential impact on employee job security and rights.

Practical Steps for Small Employers

Navigating the new fire and re-hire guidance can be challenging, especially for small employers with limited resources. Here are some practical steps to help you comply with the new regulations:

1. Review Current Contracts: Assess your existing employment contracts and identify any areas where changes may be needed. This will help you understand the potential impact on your employees and prepare for consultations.
2. Engage in Meaningful Consultation: Initiate open and honest discussions with your employees about the need for changes. Provide clear explanations and listen to their concerns. Consider involving employee representatives or trade unions if applicable.
3. Explore Alternatives: Before deciding on fire and re-hire, explore alternative options such as voluntary agreements, flexible working arrangements or temporary adjustments. Demonstrating that you have considered all options can strengthen your position.
4. Document the Process: Keep detailed records of all consultations, communications, and decisions related to fire and re-hire. This documentation can be crucial in defending against any potential claims of unfair dismissal.
5. Seek Professional Advice: Given the complexities of employment law, it’s advisable to seek legal or HR consultancy services. At Keane HR Consulting Ltd, we offer tailored guidance and support to help small employers navigate these challenging situations.

​The new fire and re-hire code of practice highlights the importance of fair and transparent practices in managing employment contracts. While these changes may pose challenges, they also present an opportunity for small employers to strengthen their HR processes and build trust with their employees.

What's your ideal work setting.....🏢


I am a big advocate of flexibility – whether it's working from home, a coffee shop, the garden or a shared workspace. As long as the environment enables you to concentrate and 'get the job done', I believe the location is not a major concern.

However, I came across an article suggesting that working from a pub might be a more cost-effective alternative to renting a hot desk...........and I'm unsure how I feel about that.........

What's your view? 🪟👁️

Have a read yourself 👇

https://hrnews.co.uk/scrap-wfh-wfp-instead-working-from-a-pub-is-40-cheaper-than-a-coworking-space/​

#flexibleworking #remoteworking #workfromapub