Recent developments in the UK
Employment law in the UK continues to evolve, and staying current with legislative changes is essential for employers operating in a highly regulated environment. Our team closely monitors these developments so you remain compliant without the administrative burden. Below is an overview of the most significant employment law updates affecting the UK in 2026.
Neonatal Care Leave (2026)
The Neonatal Care (Leave and Pay) Act, which took effect in April 2025, continues to have a major impact throughout 2026. The legislation provides eligible parents with up to twelve weeks of paid neonatal care leave when their newborn requires specialist medical attention. This entitlement is granted in addition to other parental leave rights, including maternity, paternity and shared parental leave. In 2026, employers must ensure that payroll systems, policies and HR procedures fully incorporate this new statutory leave category, including eligibility screening and pay calculations.
National Minimum Wage and Living Wage Increases (2026)
The increase to the National Living Wage introduced in April 2025, raising the rate to £11.44 per hour and extending its applicability to workers aged twenty-one and over, continues to shape wage compliance in 2026. The Low Pay Commission will confirm the next annual adjustment for April 2026, which employers must implement promptly. Organisations should ensure that all workers—including casual, agency, and zero-hours staff—are paid in line with the new statutory floors and that payroll systems are updated accordingly.
Statutory Code on Fire and Rehire (2026)
The Statutory Code of Practice on fire-and-rehire practices is expected to come fully into force in 2026. The Code requires employers to engage openly and constructively with employees when proposing contractual changes that may significantly alter working terms. Employment tribunals will have authority to increase compensation awards by up to twenty-five percent where an employer unreasonably fails to follow the Code. As the Code becomes embedded in employment practice, employers must ensure consultation procedures are transparent, well-documented and aligned with statutory expectations.
Right to Request Predictable Working Patterns (2026)
The Workers (Predictable Terms and Conditions) Act, passed in 2024, becomes more visible in 2026 as workers gain experience exercising their new rights. The Act allows individuals on atypical working arrangements—including agency workers and those on zero-hours contracts—to request more stable and predictable working patterns. Employers must respond within statutory timeframes and provide clear, objective reasons where such requests cannot be accommodated. The reform is designed to reduce insecurity and support fairer scheduling practices across sectors with variable labour demand.
Ongoing Compliance and Workforce Planning (2026)
Many transformative reforms introduced between 2024 and 2025 reach full operational effect in 2026. Employers should continue to review their contracts, HR policies and internal processes to ensure alignment with new statutory entitlements, minimum wage obligations and collective consultation standards. With the UK employment landscape evolving towards greater transparency, predictability and worker protection, proactive compliance and early policy review remain best practice for employers in 2026.
