We couldn't start the application. This might be a temporary issue.
Please try a hard refresh (Ctrl/Cmd + Shift + R) or clear your browser cache.
What does a small UK business legally need for HR compliance?
What does a small UK business legally need for HR compliance? is a HarbourPoint page for UK small businesses on HR and Health & Safety, with practical guidance and links to official sources. Every UK employer must give a written statement of employment particulars on or before the first day of work, pay at least the National Minimum or Living Wage, provide at least 5.6 weeks of paid holiday, enrol eligible staff in a pension, keep pay and working time records, and follow the Acas Code on discipline and grievance. From 2026/27 the National Living Wage is £12.71 an hour and Statutory Sick Pay is £123.25 a week with no waiting days. The Employment Rights Act 2025 then shortens the unfair dismissal qualifying period to 6 months from 1 January 2027.
National Living Wage (21+), 1 April 2026: £12.71 per hour
Statutory Sick Pay: £123.25 per week, no waiting days
Family-related statutory pay: £194.32 per week standard rate
Statutory holiday: 5.6 weeks, capped at 28 days
Redundancy week's pay cap: £751
Tribunal claim window: 6 months from 1 October 2026
The day-one checklist
Written statement of employment particulars issued on or before the first working day.
Right to work check completed and evidence retained.
Pay at or above the correct National Minimum Wage band for the worker's age.
Auto-enrolment assessment for pensions.
Employers' liability insurance in force.
Health and safety induction and any role-specific training recorded.
Policies you should have in writing
Disciplinary and grievance procedures aligned to the Acas Code, since a failure to follow it can add an uplift of up to 25% to a tribunal award.
Equal opportunities and anti-harassment, including the preventative duty on sexual harassment.
Sickness absence and return to work.
Holiday and other leave, including family leave.
Data protection and staff privacy notice.
Health and safety policy, required in writing at five or more employees.
Whistleblowing, and flexible working request handling.
2026/27 rates to budget for
Verified 9 August 2026. Always check GOV.UK before running payroll.
Item
Rate
National Living Wage, 21 and over
£12.71 per hour
18 to 20 rate
£10.85 per hour
Apprentice rate
£8 per hour
Statutory Sick Pay
£123.25 per week, up to 28 weeks
Statutory maternity and family pay
90% for 6 weeks, then £194.32
Maximum statutory redundancy pay
£22530
Employment Rights Act 2025: what changes and when
The practical effect for SMEs is that probation management, documented performance conversations and clean dismissal paperwork matter far more than they did. Get the contracts, the process and the records right now rather than after a claim lands.
Tribunal claim time limits extend from 3 to 6 months on 1 October 2026.
Unfair dismissal protection moves from 24 months to 6 months on 1 January 2027.
The unfair dismissal compensatory cap is removed from 1 January 2027.
Statutory Sick Pay is payable from day one, with the Lower Earnings Limit removed since 6 April 2026.
What is the single most common UK HR failing in small businesses?
Missing or out-of-date written particulars, closely followed by no evidence that staff received the policies. Both are cheap to fix and expensive to defend.
Do we need a staff handbook by law?
No, but you need the underlying policies, and a handbook is the simplest way to issue and evidence them. Keep the handbook non-contractual so you can update it.
How long should we keep employee records?
Six years after employment ends covers most contractual and payroll claims, with longer retention for health surveillance. Keep only what you can justify under UK GDPR.
Where can I check current statutory rates?
Our /uk-statutory-rates page tracks them with effective dates, and GOV.UK is the primary source.