Avoid Costly HR Mistakes in 2026: A Guide for Employers

For the HR Department, the start of the year can feel like the alarm you forgot to cancel on a Sunday: while others get to stay in bed and stretch, your year starts with a sudden and most unwelcome wake-up call. New budgets, restructures, policy rollouts, and legislative changes can make January a high-risk period for HR errors, and the cost of falling short can be monumental, with the potential to result in tribunal claims, employee relations issues, and even reputational damage.  

At Glaisyers ETL, we help employers anticipate and prevent costly HR mistakes, ensuring compliance from the start of the year. Here, we’ll highlight the most common pitfalls to look out for and how you can avoid them so that you can start the year off on the right foot.

Stale Documentation

Employment contracts and handbooks – if not used as a coaster or a doorstop – are often left untouched for years, despite updates to laws, business structures, or working practices. This kind of outdated documentation can create confusion, undermine enforceability, and expose employers to unnecessary risks. Regular contract and employee handbook reviews help to ensure terms remain legally compliant and aligned with how the business actually operates.

HR teams also handle significant volumes of sensitive personal data. Weak data protection can lead to GDPR breaches, regulatory fines, and loss of employee trust. Implementing robust processes, clear accountability, and comprehensive staff training is essential.

Managing Working Hours, Pay, and Holiday Compliance

Employers must carefully monitor working hours, rest breaks, and opt-out arrangements to ensure not only that the organisation is compliant, but also that treatment is fair across all staff members. Holiday pay also remains a high-risk area, particularly where employees receive overtime, commission, or variable pay. HR teams should implement robust time-tracking systems, conduct regular audits of holiday pay calculations, and provide comprehensive training to line managers on their legal obligations to help reduce errors and maintain consistent treatment across the organisation.

Avoiding Discrimination and Promoting Equality in HR

Though it may not be purposeful, unconscious bias can influence recruitment, promotion, performance management, and redundancy decisions. Without adequate training and structured processes in place, these risks can expose employers to discrimination claims. Additionally, a homogeneous team does not generate new ideas – diversity should be prioritised for companies seeking to expand their horizons and thrive. It should also be noted that employers have a legal duty to make reasonable adjustments for disabled employees, and failure to do so could equally land your organisation in hot water and result in reputational damage.

Managing Performance and Redundancies Lawfully

Performance management and redundancy exercises must be handled through fair, transparent processes supported by clear documentation. Informality or poor record-keeping significantly weakens an employer’s position in the event of a dispute or termination of employment. You can find information on navigating settlement agreements on our website or contact a member of our employment team for quick, personalised advice.  

Proactive HR management is exigent year-round, but the start of the year can open more opportunities for error than usual. SMEs, in particular, often face additional challenges due to limited HR resources or reliance on informal practices. Legal and HR compliance should be seen as an investment, not a burden. An HR audit reviews contracts, policies, procedures, and practical application to assess legal compliance and operational effectiveness. A strong compliance framework supports growth, investment, and organisational change.

Ensure your HR policies and practices are compliant for 2026.

Book an HR compliance consultation or policy review with Glaisyers ETL today to protect your organisation and start the year with confidence.