Legal briefing | |

In the Pipeline - March 2026

A guide to future employment and immigration law 

In the Pipeline - March 2026

Overview

  1. Employment
  2. EU Employment Law Developments
  3. Immigration

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Employment

  • Industrial action

    Late 2025 to August 2026

    • New measures in the Employment Rights Act will make it easier for trade unions to call industrial action, including permitting electronic ballots and removing or reducing notice, information and turnout requirements for ballots brought in by the previous Government. 
    • The minimum service levels introduced at the end of 2023 to limit the impact of industrial action in certain sectors (such as emergency services and rail transport) were removed on 18 December 2025. 
    • The changes to notice and information requirements for industrial action ballots took effect on 18 February 2026. The removal of the turnout requirement for industrial action ballots will take effect on 6 April 2026.
    • Electronic balloting for industrial action will be introduced in August 2026.

  • National minimum wage


    • The rates of the national minimum wage will increase to: 
      • £12.71 (up from £12.21) for workers aged 21 or over (this rate is referred to as the national living wage)
      • £10.85 (up from £10) for workers aged 18-20
      • £8.00 (up from £7.55) for apprentices and workers aged 16-17. 
    • In the longer term, the Government plans to extend the national living wage to workers aged 18 or over, but there is no indication of when this change is likely to take place.

  • Statutory Maternity, Paternity, Adoption, Shared Parental and Neonatal Care Pay

    5 April 2026

    • The weekly rate of statutory maternity, paternity, adoption, neonatal care pay and shared parental pay will increase to £194.32 (from £187.18).

  • Statutory Sick Pay

    6 April 2026

    • The weekly rate of statutory sick pay (SSP) will increase to £123.25 (from £118.75).
    • Currently, workers must earn at least the lower earnings limit (£125 per week) to be eligible for SSP and there is a four-day waiting period before SSP is payable. These requirements will be removed under the Employment Rights Act, from 6 April 2026.

  • Unfair Dismissal Compensation and Statutory Redundancy Pay

    6 April 2026

    • The maximum amount of a week's pay (for calculating the unfair dismissal basic award and statutory redundancy pay) will increase from £719 to £751. 
    • The maximum compensatory award for unfair dismissal will increase from the lower of £118,223 and a year's pay, to the lower of £123,453 and a year's pay. This maximum will be removed in January 2027 (see Unfair Dismissal Rights below).

  • Enforcement of employment rights

    April 2026

    • A new Fair Work Agency will be established to bring together the work of existing agencies and enforce certain employment rights including minimum wage and statutory holiday and sick pay, including by bringing an Employment Tribunal claim on an employee's behalf.

  • Collective Bargaining

    April to October 2026

    • The Employment Rights Act will introduce various measures to increase trade union recognition, including:
      • simplifying the statutory trade union recognition process and reducing thresholds for support
      • requiring employers to inform employees of their rights to join a trade union
      • allowing trade union representatives reasonable access to the workplace.
    • The changes to the recognition process will come into force on 6 April 2026. The trade union information requirement and right of access are expected to take effect in October 2026.
    • In the adult social care sector, there will be a new fair pay agreement for sector wide collective bargaining arrangements (which could form the basis for similar agreements in other sectors in the future).

  • Family Leave Rights

    6 April 2026 to 2027

    • Paternity leave and unpaid parental leave will become day one rights under the Employment Rights Act, which will remove the current qualifying service requirements. The six-month service requirement for shared parental leave will remain in place.
    • Employees will be able to take paternity leave following shared parental leave (currently an employee who takes shared parental leave loses the right to any untaken paternity leave).
    • The changes to parental and paternity leave are expected to come into force on 6 April 2026.
    • Employees will have a new right to unpaid bereavement leave, in respect of certain family relationships (which are yet to be specified). This will be in addition to the current two-week parental bereavement leave entitlement.
    • There will be new restrictions on dismissing  employees during pregnancy or during maternity, adoption or shared parental leave or within six months of return to work. The Government recently consulted on the details of the proposals and the response is awaited.
    • The right to bereavement leave and restrictions on dismissal during or after family leave are expected to come into force in 2027.
    • In July 2025, the Government launched a review of the parental leave system, beginning with a call for evidence which closed in August 2025. The Government is expected to complete its review in early 2027.
    • The Government has also stated that it intends to review the new right to unpaid carers' leave (which came into effect in April 2024) including considering whether this should be paid.

  • Equality and Pay Reporting

    April 2026 to 2027

    • Employers with 250 or more employees will be required to report on their ethnicity and disability pay gaps. The Government has previously consulted on the detail of the new reporting requirements. There is no confirmed date for when these requirements will come into force.
    • Employers will also have to publish an equality action plan setting out the steps they are taking in relation to gender equality including (i) to address the gender pay gap action and (ii) to support employees through the menopause. 
    • Equality action plans will be introduced on a voluntary basis in April 2026 and become mandatory in April 2027.

  • Collective redundancies

    April 2026 to 2027

    • Employers must carry out collective consultation with employee representatives where they are making 20 or more redundancies within a 90-day period at a single establishment. The protective award for breach of these collective redundancy consultation requirements will increase from 90 days' pay to 180 days' pay in relation to dismissals on or after 6 April 2026.
    • There will also be changes to the thresholds which trigger collective consultation. Currently, collective consultation is required where an employer is making 20 or more redundancies at a single establishment. In many cases this means that where there are fewer than 20 redundancies at any one site, the collective consultation obligations will not apply.
    • Under the Employment Rights Act, the rules will change so that the collective consultation obligations apply where either there are 20 or more redundancies at one site or there are redundancies across more than one site above a certain threshold. This threshold could be a specific number or a percentage of the workforce and the Government is currently consulting on different proposals. This change is expected to take effect during 2027.

  • Financial Services

    1 September 2026

    • In 2023, the Financial Conduct Authority (FCA) launched a consultation on proposed new diversity and inclusion requirements in the financial sector and new rules on non-financial misconduct.
    • The FCA decided not to proceed with the diversity and inclusion requirements, but to go ahead with the non-financial misconduct rules. 
    • Non-financial misconduct will be incorporated into the FCA's Conduct Rules with effect from 1 September 2026. The FCA has also published  guidance on how firms should treat non-financial misconduct, including in relation to fitness and propriety assessments for certified staff. Our briefing sets out more detail on the proposals and what they mean for employers.
    • Separately, the FCA has carried out a consultation on proposals to improve the efficiency of the Senior Managers and Certification Regime, which closed on 7 October 2025.  We have produced a briefing on the proposals which is available here.

  • Harassment

    October 2026

    • The previous Government introduced a new duty on employers to take reasonable steps to prevent sexual harassment at work, with a 25% uplift in compensation where the employer has breached this duty. This came into force on 26 October 2024.
    • The EHRC has updated its technical guidance on sexual harassment and harassment at work to reflect the new duty, and has also published an eight step guide for employers on preventing sexual harassment at work.
    • Under the Employment Rights Act, this duty will become a duty to take "all" reasonable steps to prevent sexual harassment and regulations will be produced to set out the steps which employers should take in order to comply with the duty. 
    • In addition, employers will be liable for harassment of employees by third parties, such as clients or suppliers. This is not limited to sexual harassment but applies to all types of harassment. 
    • These changes are expected to take effect in October 2026.

  • Confidentiality and NDAs

    October 2026

    • Under the Employment Rights Act, employers will be unable to use confidentiality provisions (for example in a settlement agreement) to prevent an employee from disclosing information relating to harassment or discrimination. Further detail will be set out in regulations, which may allow for exceptions in certain circumstances.
    • There is no confirmed date for this change but it may come into effect at the same time as the other harassment provisions (see above) in October 2026.

  • Employment Tribunal claims

    October 2026

    Most statutory claims must be brought in the Employment Tribunal within a three-month time limit. Under the Employment Rights Act this is being extended to six months. There is no confirmed date for when this change will be made but the Government has stated it will not be before October 2026

  • Changing Terms ("fire and rehire")

    January 2027

    • The previous Government introduced a new Code of Practice on the use of "fire and rehire" to change terms of employment, which came into force on 18 July 2024. Where an employer fails to follow the Code, the Employment Tribunal has the power to increase compensation awarded for any relevant claim by up to 25%.
    • Under the Employment Rights Act, the ability to use "fire and rehire" to change terms fairly will be restricted to situations in which the employer is in serious financial difficulties and has no alternative but to change terms of employment. The current Code of Practice will continue to apply until the new rules come into effect, which is expected to be in January 2027, at which time the Code will be revised. 

  • Unfair dismissal rights

    1 January 2027

    • Employees currently need to have two years' service to qualify for unfair dismissal protection (except for whistleblowing dismissals where there is no qualifying period). This qualifying service requirement will be removed from 1 January 2027.  This means that any employees who start work on or before 1 July 2026 will have unfair dismissal protection from 1 January 2027.
    • The cap on unfair dismissal compensation will also be removed from 1 January 2027. Currently the maximum compensatory award for unfair dismissal is the lower of £118,223 and a year's pay.

  • Flexible working

    2027

    • The service requirement for the statutory right to request flexible working was removed in April 2024 (under the previous Government), so all employees have the right to request flexible working from day one.
    • The Employment Rights Act will introduce a new requirement for an employer's refusal of a flexible working request to be "reasonable". There will be regulations to set out further detail on the process for considering requests. The changes are expected to take effect in 2027.
    • The Government also pledged (prior to the election) to introduce a "right to disconnect" alongside the changes to flexible working. This new right was reportedly to be introduced in a code of practice (and does not form part of the Employment Rights Act) but there have been reports that it may not proceed.

  • Casual/zero hours workers

    2027

    • Zero hours and minimum hours workers will have a new right to be offered a regular hours contract if their working hours regularly exceed the zero/minimum level over a set reference period.
    • Zero hours and irregular hour workers will also have a right to receive reasonable notice of shifts, and compensation if shifts are cancelled or curtailed.
    • These changes are set out in the Employment Rights Act, and there will be consultation on the detail before the changes come into effect, which is expected to be in 2027.

  • Non-compete Covenants

    No date

    • The Government is proposing to reform the law on non-compete clauses and is considering a range of options. The proposals include banning non-competes, either altogether or for employees earning below a certain salary, or limiting their duration to three months. 
    • The details are set out in a Government working paper which was open  for responses until 18 February 2026.

  • Employment Status

    No date

    • In 2017, the Independent Review of Employment Practices in the Modern Economy (known as the Taylor Review) was published and in response, the previous Government published the Good Work Plan setting out a number of reforms aimed at improving the position of workers. It decided not to introduce legislation on employment status, but instead produced guidance for employers.
    • The Government pledged (prior to the 2024 general election) to create a single worker status, with all workers having the full range of employment rights including parental leave and unfair dismissal. These proposals will be subject to consultation at a future date.

EU Employment Law Developments

Following Brexit, the UK is not required to implement new EU directives, but EU laws will have implications for UK businesses with operations in Europe.

  • Whistleblowing

    December 2021 onwards

    • The EU Whistleblowing Directive introduces various measures to protect whistleblowers, which cover not just employees and workers but also self-employed contractors, former employees and workers, and job applicants. 
    • Key features of the Whistleblowing Directive include:
      • Employers with 50 or more staff are required to establish secure internal whistleblowing channels and procedures 
      • Employers must provide feedback to whistleblowers within a reasonable time (and a maximum of three months)
      • A whistleblower may choose to report to a regulator without reporting internally to their employer first
      • A whistleblower does not need be acting in good faith or in the public interest to gain protection under the law
    • EU countries were required to implement the Whistleblowing Directive by 17 December 2021 (although private sector employers with 50 to 249 employees had until 17 December 2023 to establish internal whistleblowing channels). 
    • The UK already has comprehensive whistleblowing laws in place, but some elements of the directive are wider than UK laws. For example, the directive requires employers to put in place internal whistleblowing channels, and it applies to job applicants and self-employed contractors as well as employers and workers.

  • Parents and carers

    August 2022 onwards

    • The EU Directive on Work-life Balance for Parents and Carers grants new rights including:
      • Ten days of paid leave for fathers or second parents, to be taken around the birth of a child
      • A right to four months' parental leave, of which two months are paid and non-transferable between parents
      • Up to five working days' unpaid leave per year for carers   
    • The right for working carers to request flexible working arrangements.
    • EU member states were required to implement the Directive by August 2022. 
    • In the UK, employees may take paternity leave and shared parental leave, and unpaid carers' leave, and all employees can make a request for flexible working from day one. The UK Government plans to make changes to the flexible working process and review the family leave system (see Family Leave Rights and Flexible Working above).

  • Zero hours and irregular hours workers

    August 2022 onwards

    • An EU Directive on Transparent and Predictable Working Conditions aims to introduce more certainty for zero hours or irregular hours workers, and includes:
      • A requirement for employers to provide workers who have an unpredictable work pattern with a written statement of the number of guaranteed hours and pay
      • A ban on probationary periods longer than six months (unless justified)
      • A right to request more predictable working conditions after six months
      • A right to compensation if an assignment is cancelled at short notice.  
    • EU member states were required to implement the Directive by August 2022. 
    • The UK Government plans to give zero hours workers rights to a regular hours contract and  notice of shifts and cancellation compensation (see Casual/Zero Hours Workers above).

  • Minimum wage

    November 2024

    • The EU Directive on Adequate Minimum Wages requires EU member states to provide an adequate statutory minimum wage, promote collective bargaining and improve enforcement and monitoring.
    • EU member states were required to implement the Directive by 15 November 2024. 
    • The UK has had minimum wage laws in place since 1998. The UK Government is planning to make some changes to minimum wage rates (see National Minimum Wage above).

  • Corporate Sustainability Reporting

    2025

    • The Corporate Sustainability Reporting Directive (CSRD) came into force on 5 January 2023. Organisations which are covered by the Directive will be required to report on various ESG matters, including in relation to their workforce and in their value chains (see our briefing for more detail on the requirements).
    • EU member states had to implement the directive by 6 July 2024. The Directive does not have to be implemented in the UK, but non-EU businesses could have reporting requirements if they have significant business in the EU, and even those not in scope can expect to receive CSRD-related requests for information.  The thresholds for determining which businesses are in scope are being raised, and some reporting requirements delayed or revised, as detailed in our recent update.

  • Board diversity

    June 2026

    • A new Directive on Improving Gender Balance among Directors of listed companies requires listed companies in the EU to have at least 40% female non-executive directors or at least 33% female executive and non-executive directors, by 30 June 2026. 
    • There are voluntary targets for female representation on boards in the UK but no indication that there will be any compulsory targets in the foreseeable future.

  • Equal pay

    June 2026

    • The EU Directive on equal pay and pay transparency introduces various measures to improve equal pay enforcement and transparency. 
    • Under the Directive, employers with at least 250 employees will be required to publish gender pay gap information annually, and employers with at least 100 employees will have to publish this information every three years.
    • The Directive also introduces measures relating to pay in recruitment and promotion including:
      • A requirement for employers to inform job applicants about the starting salary/pay before interview
      • A ban on asking job candidates about their pay history
      • A right for workers to ask employers for information about pay levels and pay and promotion criteria
    • EU member states are required to implement the Directive by 7 June 2026.
    • UK employers with 250 or more employees have been required to publish annual gender pay gap reports since 2018. The UK Government will require employers to publish an equality action plan to address their gender pay gap (see Pay and Equality Reporting) above. 
    • We have published a briefing on the Directive and how employers can prepare.

  • Artificial Intelligence

    2026

    • The European Parliament has approved an AI Act to harmonise AI rules across the EU, which would cover AI systems used by employers in the EU.  Most of the provisions in the Act are expected to come into force in 2026.
    • Separately, the European Commission adopted a proposal for a Directive to introduce liability for damage related to the use of artificial intelligence (AI), including the use of AI in employment (such as discrimination arising from a recruitment process using AI technology), but this has since been withdrawn. 
    • The UK Government has stated that it will publish a consultation on AI in the workplace in due course.

  • Gig economy "platform workers"

    December 2026

    • A new EU Directive will improve working conditions for individuals working through digital labour platforms (such as taxi or food delivery apps). 
    • Under the Directive:
      • There would be a list of criteria to decide whether the platform operator is an "employer"
      • Businesses would be required to inform workers of the ways in which they use algorithms for example for monitoring and work allocation
      • Workers would have the right to contest automated decisions and have them rectified 
    • Member states are required to implement the Directive by 2 December 2026. 
    • In the UK, the Government has pledged to create a single worker status which would improve the rights of all workers, including those in the gig economy (see Employment Status above).

  • Corporate Sustainability Due Diligence

    2027

    • The Corporate Sustainability Due Diligence Directive will introduce new due diligence duties for organisations to take active steps to identify and manage adverse human rights and environmental impacts in their operations (including their workforce) and chains of activities.
    • Both EU and non-EU companies with significant EU turnover are covered by the Directive.
    • The Directive is in final form and must be implemented by member states by 26 July 2026. The first compliance deadline for the very largest companies is 26 July 2027, with all in-scope companies needing to comply by 26 July 2029 (although these deadlines may be delayed). 
    • We have published a briefing on the new Directive and how businesses can prepare, although it should be noted that the thresholds for determining which businesses are in scope, and some diligence duties are being changed, as detailed in our recent update.

  • Remote working

    No date

    • The European Commission is consulting on possible new EU legislation to ensure fair remote working and the right to disconnect. The latest consultation closed in October 2025 and the response is awaited.
    • The UK Government previously pledged to introduce a right to disconnect, under a code of practice, but it is unclear whether this will be taken forward (see Flexible Working above).

Immigration

  • Immigration sponsored work visa reforms

    May 2025 – late 2026

    • In May 2025, the Government published an Immigration White Paper (Restoring control over the immigration system) setting out plans for significant immigration policy changes including changes aimed at reducing net migration levels.
    • Some of the planned changes have already come into effect, with Immigration Rule changes on 22 July 2025 increasing the minimum skill level required for Skilled Worker visas to RQF level 6 (graduate level) as well as increasing the minimum salary level thresholds for employer-sponsored work visas.
    • Since 8 January 2026, the level of English language required to qualify for certain UK visas has also increased to level B2 on the Common European Framework of Reference for Languages (CEFR) scale, which is intermediate to upper-intermediate level.
    • The Government's 'earned settlement' consultation  on its proposals to double the qualifying period to apply for indefinite leave to remain (or settlement) in the UK from the current five years to ten years closed on 12 February 2026. A key part of these proposals  is a new concept of 'earned settlement' with time reductions or additional time added to from the new 10-year baseline qualifying period, depending on specified requirements being met.
    • These settlement proposals would represent a significant change, and it is not yet clear whether transitional provisions will apply to individuals already in the UK on visas who are currently on a five-year pathway to settlement under the current Immigration Rules. The Government is expected to respond to the consultation and set out details of its planned changes during 2026.
    • The Migration Advisory Committee (MAC) is due to publish its stage 2 report on the new temporary shortage list (TSL) in summer 2026. The TSL was introduced on 1 July 2025 setting out certain 'lower skilled' occupations which fall below the minimum skill level required for Skilled Worker visas, to continue to be sponsored.

  • Continuing digitalisation of UK visas

    2025 - 2026

    • Physical visa documents (including biometric residence permit (BRP) and biometric residence card (BRC)) have been phased out and replaced with digital immigration status (known as an eVisa). 
    • New visitor visa applicants with visa applications submitted on or after  25 February 2026, will now be issued their visas digitally via an eVisa and notified to them by email. They will no longer receive a physical vignette or visa endorsement in their passports. They join other groups of visa applicants, including applicants for Student visas, Sponsored Worker and Youth Mobility Scheme visas who all already receive eVisas.
    • Visa holders are now required to register for an eVisa to confirm their UK visa status once their visas are issued. Applicants are given access to their UK immigration status via an online portal and are then able to share information on their visa status online with prospective employers, landlords or other relevant third parties to evidence of their right to remain in the UK.
    • This is part of the streamlining and increasing digitalisation of the UK's visa system, with a move towards a 'digital by default' border and immigration system.

  • Introduction of European Exit/Entry System (EES) and European Travel Information and Authorisation System (ETIAS)

    October 2025 to final quarter of 2026

    • The Entry/Exit System (EES) - is an automated IT system for registering non-EU nationals for visits (up to 90 days in any 180-day period) to any of the European countries using the system (which will include most EU countries, e.g., France, Germany, Spain, the Netherlands, and will exclude Cyprus and Ireland).
    • The EES will retain a record of entry/exit data as well as any periods of overstaying within the EU countries which implement the EES. It is being rolled out gradually and became operational on 12 October 2025 with full implementation currently expected by 10 April 2026.
    • Separately, the EU is introducing a new visa waiver programme (similar to the ESTA programme which applies in the US). Under the new European Travel Information and Authorisation System (ETIAS), all non-EU nationals travelling to the EU will need to apply online or via a mobile app prior to travel.
    • It will apply to non-EU nationals (including UK nationals) and to stays of up to 90 days in every rolling 180 days, while longer stays will require a visa. The ETIAS is expected to cost €20 and last for three years or until the expiry date of the passport expiry used to apply if this is shorter. It will initially cover all European Economic Area countries (except for Ireland and Cyprus).
    • The launch date has now been pushed back to the last quarter of 2026 with a specific date not yet confirmed. 
    • Whilst British citizens do not require visas to visit the EU or Schengen countries, post-Brexit, they must qualify for entry under the visitor rules, with activities subject to strict limits, including a prohibition against undertaking productive work.

  • Electronic Travel Authorisations

    25 February 2026

    • The Electronic Travel Authorisation (ETA) is a universal ‘permission to travel’ requirement which is now fully rolled out in the UK and since 25 February 2026, will now be strictly enforced. The ETA is similar to the ESTA system in the United States.
    • Everyone wishing to travel to the UK (except British citizens, Irish citizens and legal residents of Ireland who are travelling to the UK from Ireland, Guernsey, Jersey or the Isle of Man) must now apply for an ETA in advance unless they hold a UK visa or UK residence status. The current application fee is £16 and the ETA is issued for a two-year duration or until the expiry date of the passport expiry used to apply if this is shorter.
    • The Government has announced that from 25 February 2026 individuals travelling to the UK who require an ETA but do not hold one will not be able to legally travel to the UK.
    • British and Irish citizens, including dual citizens, do not require an ETA. Dual British citizens will need to ensure they are able to travel to the UK on either a valid British passport or a certificate of entitlement to right of abode to prove their status.

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