Employment Law Is Changing in 2027: Why Managers Can No Longer Afford to Get Performance Management Wrong

When people hear that employment law is changing, the first question is often:

"Do we need to update our policies?"

The answer is probably yes.

But in my experience, that's rarely where the biggest challenge lies.

Over the years, I've worked with many managers who genuinely wanted to do the right thing. They cared about their teams and wanted their employees to succeed. What they often lacked wasn't good intentions, it was confidence.

Confidence to have a difficult conversation.

Confidence to give honest feedback.

Confidence to address a performance issue before it became a much bigger problem.

With the changes introduced by the Employment Rights Act 2025, many of which are expected to come into effect during 2027, getting those conversations right is going to become even more important.

Performance management isn't just an HR responsibility

One of the biggest misconceptions I come across is that performance management sits with HR.

It doesn't.

HR can provide guidance, support and advice, but it's managers who have the conversations, set expectations, give feedback and support employees to improve.

That's why developing managers is one of the best investments a business can make.

The conversations that don't happen are often the most expensive

I've seen it happen more times than I can count.

A manager notices that something isn't quite right.

Instead of addressing it early, they hope it will improve on its own.

Weeks turn into months.

The feedback stays vague.

The expectations aren't clear.

The employee doesn't realise there's a genuine concern until a formal meeting is arranged.

By then, everyone feels frustrated.

The manager wonders why nothing has changed.

The employee feels blindsided because, from their perspective, no one clearly explained what needed to improve.

Many workplace issues don't become difficult because of one conversation.

They become difficult because the right conversation didn't happen early enough.

Why 2027 matters

The Employment Rights Act 2025 represents one of the biggest changes to UK employment law in recent years. One of the most significant reforms is the planned reduction in the qualifying period for ordinary unfair dismissal from two years to six months.

For employers, this means there will be much less time to identify concerns, provide support and demonstrate that performance has been managed fairly, consistently and reasonably.

Businesses that rely on "having a quick chat" without documenting discussions or setting clear expectations may find themselves exposed to unnecessary risk.

Good performance management isn't about catching people out.

It's about giving people a fair opportunity to succeed.

Good performance management starts long before formal action

One of the biggest mistakes I see is managers believing that performance management begins when they invite someone into a formal meeting.

In reality, it starts much earlier.

It starts with setting clear expectations.

It continues with regular check-ins, constructive feedback and honest conversations.

When managers avoid those conversations because they feel uncomfortable or unsure how to approach them, small issues often become much bigger ones.

By the time HR becomes involved, the relationship may already have broken down and both the manager and employee are feeling frustrated.

Good performance management isn't about following a process.

It's about building a culture where expectations are clear, feedback is regular and people know where they stand.

What good performance management looks like

It doesn't have to be complicated.

Good managers:

• Set clear expectations from the start.

• Give feedback regularly, not just when something goes wrong.

• Use real examples rather than vague comments.

• Agree clear actions and timescales.

• Follow up on previous conversations.

• Recognise improvement as well as addressing concerns.

Most employees want to do a good job.

When they understand what's expected of them, they're far more likely to achieve it.

Investing in managers is investing in your business

As employment law evolves, I believe the businesses that will be in the strongest position won't simply be those with updated policies.

They'll be the ones with managers who know how to have effective conversations.

Managers who feel confident giving feedback.

Managers who know how to address concerns early.

Managers who create clarity instead of confusion.

Investing in manager capability isn't just about reducing legal risk.

It's about improving performance, building trust and creating workplaces where people can succeed.

Coming Soon: Managing Employee Performance with Confidence

To help businesses prepare for these changes, I'm launching my first live virtual manager training webinar:

Managing Employee Performance with Confidence

This practical session is designed for managers and business owners who want to feel more confident handling performance issues before they become formal problems.

By the end of the webinar, participants will know how to:

• Confidently identify genuine performance issues before they escalate.

• Structure effective performance conversations.

• Give clear, constructive feedback employees can understand and act on.

• Set realistic expectations and measurable objectives.

• Create practical improvement plans.

• Handle difficult responses with confidence and professionalism.

• Document performance discussions effectively to protect both employees and the business.

The aim isn't to turn managers into HR professionals.

It's to give them the confidence, practical tools and structure they need to manage performance fairly, consistently and effectively.

If you'd like to be among the first to hear when bookings open, keep an eye on the HR Insight Studio website or subscribe to the newsletter.

Because in 2027, good performance management won't simply be good practice.

It will be more important than ever.