| 08 Sep 2026 |

In the Pipeline - September 2026

A guide to future employment and immigration law

Now Reading

Employment

Enforcement of employment rights

2026 onwards
- A new Fair Work Agency (FWA) was established in April 2026 to enforce workers' rights. The FWA has wide powers, including the ability to demand documents and information and issue financial penalties.
- Initially the FWA's remit will cover national minimum wage and employment agency standards (as well as gangmaster licensing).
- The FWA's remit is expected to be expanded in 2027 to cover other areas including holiday pay and Statutory Sick Pay.
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 and (ii) to support employees through the menopause.
- Equality action plans were introduced on a voluntary basis from April 2026 and become mandatory from April 2027. The Government has published guidance on the detail which employers should include in their action plans.
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 is 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 rules and what they mean for employers.
- Separately, the FCA his making some changes to to improve the efficiency of the Senior Managers and Certification Regime. We have produced a briefing on the changes which is available here.
Employment Tribunal claims

1 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 from 1 October 2026.
- The new time limit will apply to claims which relate to events on or after 1 October 2026. Any claims which relate only to events which took place before 1 October 2026 must still be brought within the three-month time limit.
Harassment

30 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 under the Equality Act.
- These changes will take effect on 30 October 2026.
Trade Unions

30 October 2026
- The Employment Rights Act will introduce various measures to increase trade union recognition, including:
  - requiring employers to inform employees of their trade union rights, on joining and regularly thereafter
  - allowing trade union representatives reasonable access to the workplace.
- These measures will take effect on 30 October 2026 and will apply to all employers whether or not they recognise a union or have union members in their workforce.
- A Code of Practice will set out the process for the employer and trade union to reach agreement on access to the workplace.
- The Government has consulted on the detail of the information which employers will have to provide on trade union rights and the response is awaited.
- Also from 30 October 2026, there will be a new protection from detriment for employees who take industrial action (currently there are restrictions on dismissing employees for taking industrial action but these restrictions do not apply to actions short of dismissal, such as warnings).
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 started 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 £123,543 and a year's pay.
Changing Terms ("fire and rehire")

1 January 2027
- The previous Government introduced a 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 certain terms fairly (including pay, pension and hours) will be restricted to situations in which the employer is in serious financial difficulties and has no alternative but to change terms of employment.
- This change will come into effect on 1 January 2027, and the current Code of Practice is expected to be updated to reflect the new restrictions.
National Minimum Wage

April 2027
- The National Minimum Wage (NMW) increases every year in April. The current hourly rate of the NMW is:
  - £12.71 for workers aged 21 or over (this rate is referred to as the national living wage)
  - £10.85 for workers aged 18-20
  - £8.00 for apprentices and workers aged 16-17.
- In the longer term, the Government plans to amend the age bands so that the national living wage (which currently applies to workers aged 21 or over) will apply to workers aged 18 or over. There is no indication of when this change is likely to take place.
Statutory Maternity, Paternity, Adoption, Shared Parental and Neonatal Care Pay

April 2027
- The weekly rate of statutory maternity, paternity, adoption, shared parental and neonatal care pay increases every year in April. The current weekly rate is £194.32.
Statutory Sick Pay

April 2027
- The weekly rate of statutory sick pay (SSP) increases every year in April. The current weekly rate of SSP is £123.25.
Unfair Dismissal Basic Award and Statutory Redundancy Pay

April 2027
- The maximum amount of a week's pay (for calculating the unfair dismissal basic award and statutory redundancy pay) increases every year in April. The current maximum amount of a week's pay is £751.
Family Leave Rights

2027
- 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 is consulting on the current right to unpaid carers' leave (which came into effect in April 2024) including considering whether this should be paid. The Government's response and final report is expected in late 2026/early 2027.
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 Government recently consulted on the proposed new requirements and the response is awaited.
- The changes are expected to take effect in 2027 but there is no confirmed date.
Collective redundancies

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 has increased 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 recently consulted on different proposals. This change is expected to take effect during 2027.
Casual/zero hours workers

2027
- Zero hours and low minimum hours workers will have a new right to be offered a guaranteed 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.
- The Government is consulting on the details of these new rights, including the reference period for guaranteed hours contracts and the amount of notice required for shifts.
- The changes will come into effect in 2027 but there is no confirmed date.
Confidentiality and NDAs

2027
- 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.
- This change is expected to come into effect in 2027 although there is no confirmed date.
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 closed for responses on 18 February 2026.
Pay Transparency

No date
- The Government is consulting on reforms to equal pay laws, including increasing pay transparency. Proposals include a new requirement for employers to provide pay information to job candidates before interview.
- The consultation closes on 27 October 2026.
Disciplinary and Grievance Process

No date
- Acas is consulting on a revised draft Code of Practice on Disciplinary and Grievance Procedures. The revised draft makes a number of changes aimed at encouraging early informal resolution, and also recommends that the Code should be followed for workers as well as employees.
- The consultation closes on 23 September 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.

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 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.

Immigration

Immigration sponsored work visa reforms

May 2025 – late 2026
- Since 8 January 2026, the level of English language required to qualify for certain UK visas has 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.
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, are issued their visas digitally via an eVisa which is 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 has operated since 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. 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 used to apply if this is shorter.
- Since 25 February 2026 individuals who require an ETA but do not hold one are not 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.
Sponsor Management System

3 September 2026
- The Home Office has announced the introduction of mandatory Multi-Factor Authentication (MFA) for all Sponsorship Management System (SMS) users. MFA adds an extra layer of security by requiring users to enter a one-time passcode (sent by text message or email) in addition to their usual username and password each time they access SMS. Updated sponsor guidance will be published in due course.
- MFA will be rolled out on a phased basis from 3 September 2026, with all sponsors expected to be using MFA by November 2026.
Right to Work

1 October 2026
- From 1 October 2026, the UK government will significantly expand the scope of right to work ("RTW") checks for businesses. Introduced under the Border Security, Asylum and Immigration Act 2025, these changes will mean that responsibility for RTW compliance is no longer limited to traditional employment. A wider range of working relationships, including labour supply chains, subcontracting, and some online matching platforms will now be captured. The updated rules also increase the risk of substantial civil penalties, up to £60,000 per illegal worker, covering a much broader array of arrangements than before.