What HR and People Teams Should Prioritise in 2026

With significant legislative change on the horizon and ongoing shifts in payroll requirements, successful organisations will be those that prepare proactively - not reactively, according to a report by https://www.moorepay.co.uk/

At HARP, we work with HR, Payroll Teams and Business Owners every day, and one thing is clear: when processes, data and systems are aligned, teams are more confident and better equipped to deliver accurate, compliant outcomes.

Here’s a practical guide to what’s coming, what matters most, and the steps you can take now.

What Is Changing in 2026 -  And Why It Matters

The workplace landscape in 2026 will be shaped by two main forces:

1. Major employment law reforms - including those within the Employment Rights Bill, which bring stronger protections and new obligations for employers. These reforms will focus on fairness, transparency and enforcement.

2. Payroll changes following the Autumn Budget - affecting wages, tax thresholds, benefits, deductions and reporting requirements.

Together, these changes raise expectations around compliance, accuracy and record keeping - making preparation essential.

Key Areas to Focus On

Employment Law Developments

Several important reforms are expected to take effect during 2026, with potential impact on HR policies and day-to-day operations:

• Stronger employee rights from day one, including expanded statutory entitlements.
• Enhanced whistleblowing protections and proactive harassment prevention duties.
• Restrictions on fire-and-rehire practices and increased transparency for employee rights.

These changes mean that traditional HR processes - from onboarding and absence handling to communications and dispute management - need careful review to ensure they reflect both the letter and spirit of evolving legislation.

Payroll Changes You Can’t Ignore

Payroll in 2026 will continue to demand precision. Key areas to focus on include:

• Minimum and Living Wage increases that affect pay structures.
• Frozen income tax and National Insurance thresholds, meaning more employees may move into higher bands.
• Updated student loan repayment thresholds and other deductions.

Ensuring your payroll data, systems and workflows are up to date now will help you avoid errors and compliance risks later in the year.

Practical Priorities for HR Teams

To be ready for these changes, focus on the following:

✅ Review HR Policies

Check everything from flexible working provisions and absence policies to whistleblowing, dismissal and re-engagement practices. Make sure they align with the latest employment law direction.

✅ Align Payroll and HR Data

Accurate, joined-up data is the backbone of compliant payroll and people decision-making. Inconsistent records create unnecessary risk — and increase the cost of fixes later.

✅ Communicate Early and Clearly

2026 is a year of transition. Clear, timely communications help employees understand changes, reduce confusion and build trust.

✅ Check Your Systems

If HR and payroll systems don’t “talk” to each other -  or if you rely on manual spreadsheets - small errors can snowball into significant compliance issues.

A Simple 2026 HR & Payroll Checklist

Here’s a starting point to get your planning underway:

☑ Review contracts and policies ahead of legislative updates
☑ Update probation, dismissal and flexible working processes
☑ Prepare for changes to statutory entitlements and payroll calculations
☑ Ensure payroll systems reflect new rates, thresholds and rules
☑ Align HR and payroll data to support audit trails and reporting

Having a plan,  even if you don’t tick every box immediately - makes the year far more manageable.

Why Tools and Systems Matter More Than Ever

In a year of change, people and payroll data need to be accurate, accessible and integrated. That’s why having the right technology in place — from absence tracking to payroll integration and reporting — is no longer optional.

With HARP, organisations can:

✔ Manage employee data consistently across HR and payroll
✔ Automate reporting and compliance workflows
✔ Reduce manual input and error risk
✔ Produce clear audit trails and insights for leadership

If your teams are still navigating multiple spreadsheets or disparate systems, now is an excellent time to explore how a unified platform can support readiness for 2026 and beyond.

Want to stay ahead in 2026?

Visit harpsoftware.co.uk to learn how our HR solutions help teams streamline processes, improve accuracy and remain compliant - all year round.