HR Insights • 11 MIN READ
Employment Law Changes: What to Expect in 2026
JAN 15, 2026
From the Employment Rights Bill to the EU Pay Transparency Directive, 2026 is a significant year for employment law. Here is what HR needs to prepare for.
The Employment Rights Bill
The Employment Rights Bill, currently progressing through Parliament, represents the most significant change to UK employment law in a generation. Key measures include the right to request a guaranteed-hours contract after 12 weeks for zero-hours and low-hours workers, day-one rights to unfair dismissal protection (subject to a statutory probationary period), strengthened trade union rights, and new provisions around fire and rehire. HR teams should monitor the Bill's progress closely and begin planning policy updates.
EU Pay Transparency Directive
EU member states are required to transpose the Pay Transparency Directive into national law by June 2026. The directive requires employers to publish salary ranges in job advertisements, grant employees the right to pay information, and report gender pay gap data. UK employers with EU operations must comply with the directive in those jurisdictions. Even UK-only employers may face pressure from employees and trade unions to adopt similar standards voluntarily.
Changes to statutory rates
From April 2026, the National Living Wage has increased to £12.21 per hour for workers aged 21 and over. The National Minimum Wage for 18-20 year olds has increased to £10.00 per hour. Statutory sick pay, statutory maternity pay, and other statutory rates have also been uprated. HR should ensure that payroll is updated in advance of any rate change and that employment contracts that reference statutory minimums are reviewed.
Preparing for change
The pace of employment law change in 2026 requires HR teams to be proactive rather than reactive. Build a legislative monitoring process: subscribe to CIPD law updates, follow ACAS guidance, and review contracts and policies at least annually. For major reforms such as the Employment Rights Bill, begin impact assessments well in advance. Early preparation reduces the risk of non-compliance and gives managers time to absorb new requirements before they take effect.
