Performance and Absence Management: Are your Managers ready for 2027?

With significant employment law changes taking effect in January 2027, effective performance and absence management will be more important than ever. Are your managers prepared to address performance concerns and employee absence fairly, consistently and confidently while meeting your organisation’s legal responsibilities?

The Employment Rights Act 2025 introduces important changes to workplace protections, making effective people management more important than ever.

For organisations, preparing for these changes is about more than reviewing policies and procedures. It’s about ensuring managers have the knowledge, confidence and practical skills to address concerns early, support employees appropriately and make fair, informed decisions.

What’s Changing in 2027?

One of the most significant changes is the reduction in the qualifying period for ordinary unfair dismissal protection. From January 1st 2027, employees will generally be able to claim unfair dismissal after six months’ service, rather than the current two years. The statutory cap on compensatory awards for unfair dismissal will also be removed. These changes reinforce the importance of managing performance effectively from the beginning of employment, including during probationary periods.

Employers will need to ensure that managers understand the importance of setting clear expectations, identifying concerns promptly, documenting discussions and following fair procedures.

Changes to Statutory Sick Pay have also increased the importance of effective absence management. Since April 2026, eligible employees have been entitled to Statutory Sick Pay from the first day of sickness absence, with the lower earnings threshold removed.

Together, these reforms highlight why organisations should review their approach to both performance and absence management.

Performance Management: Why Early Intervention Matters

Effective performance management is not simply about addressing underperformance. It involves setting clear objectives, providing regular feedback and supporting employees to achieve their potential. When performance concerns arise, delaying difficult conversations can allow relatively minor issues to develop into more significant problems.

Managers should feel confident about:

• Setting clear and measurable performance expectations.
• Identifying and addressing underperformance promptly.
• Holding constructive conversations and providing meaningful feedback.
• Agreeing realistic improvement objectives and timescales.
• Monitoring progress and maintaining accurate records.
• Following fair and consistent procedures where formal action is required.

With the qualifying period for ordinary unfair dismissal reducing to six months, structured induction and probationary reviews will become increasingly important.

By identifying concerns early, providing appropriate support and documenting decisions, managers can help employees improve, while also reducing the risk of disputes.

Absence Management: Taking a Fair and Proactive Approach

Employee absence can present significant challenges for organisations, affecting productivity, workloads and operational efficiency. However, effective absence management requires more than monitoring attendance. Managers have to balance the needs of the organisation with their responsibilities to support employees experiencing ill health. A proactive and consistent approach can help identify potential concerns, encourage open communication and support a successful return to work.

Good absence management practices include:

• Maintaining accurate absence records and identifying recurring patterns.
• Conducting supportive and effective return-to-work discussions.
• Managing short-term and long-term absence appropriately.
• Recognising when reasonable adjustments or additional support may be necessary.
• Understanding relevant sickness absence policies and procedures.
• Addressing attendance concerns fairly, consistently and sensitively.

The introduction of Statutory Sick Pay from the first day of sickness absence also makes it essential for managers to understand current sickness reporting requirements and organisational procedures.

Effective absence management can support employee wellbeing, improve attendance and minimise unnecessary disruption to the workplace.

Are Your Managers Equipped to Handle These Challenges?

Even well-written policies can be ineffective if managers lack the confidence or knowledge to apply them consistently. Performance and absence management often involve difficult conversations, sensitive circumstances and decisions that require careful consideration. Without appropriate training, managers may avoid addressing concerns, apply procedures inconsistently or fail to maintain adequate records.

Investing in manager training can help organisations:

• Build confidence in handling challenging employee situations.
• Encourage early intervention and constructive communication.
• Promote fairness and consistency across management teams.
• Improve employee engagement and wellbeing.
• Reduce the risk of avoidable grievances and employment disputes.
• Strengthen compliance with employment legislation and organisational policies.

Providing managers with the right skills benefits both employees and the wider organisation.

Preparing Your Organisation for 2027

With changes to unfair dismissal protection approaching, now is an ideal time to assess whether your organisation’s management practices are fit for purpose. Are performance expectations clearly communicated? Are concerns addressed promptly and documented appropriately? Do managers understand how to handle employee absence fairly and effectively? Addressing these questions now can help organisations prepare for the changing employment landscape.

Training managers to recognise concerns early, communicate effectively and follow appropriate procedures is an important step towards building a fairer, more confident and productive workplace.

How RealSense Learning Can Help

At RealSense, our practical e-learning courses are designed to equip managers with the knowledge and confidence to manage workplace challenges effectively.

Our Performance Management online course explores setting expectations, monitoring employee performance, providing constructive feedback and addressing underperformance.

Our Absence Management online course provides guidance on managing employee absence, applying fair and consistent procedures and supporting employees while meeting organisational needs.

By investing in practical training, organisations can equip managers with the skills to address performance concerns, manage absence fairly and confidently navigate upcoming workplace challenges.