Employment Law Changes 2026: What Employers Must Prepare For
The UK employment law landscape is undergoing significant reform, with a number of important legislative changes taking effect in 2026. Employers must understand these changes, update their policies, and train management teams to ensure compliance and avoid costly tribunal claims.
The Employment Relations (Flexible Working) Act 2023 has significantly strengthened flexible working rights. Employees now have a day-one right to request flexible working — no longer needing 26 weeks' qualifying service. Employers must consult with the employee before refusing a request and respond within two months. Employees can make two requests per year, and the requirement to explain the business impact has been removed. While employers can still refuse requests on the eight statutory grounds, the emphasis on consultation means that a blanket refusal without genuine engagement is likely to be found unreasonable.
The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 extends redundancy protection significantly. Protected employees on maternity leave, adoption leave, and shared parental leave must be offered suitable alternative employment where available — a priority right that now extends for 18 months after the employee returns to work. Employers must review redundancy selection processes to ensure compliance with these enhanced protections, which apply to any restructuring process commenced after the Act's commencement.
Holiday pay calculations for irregular hours and part-year workers have been reformed following the Supreme Court's decision in Harpur Trust v Brazel. The government has introduced a statutory system of rolled-up holiday pay, allowing employers to include a 12.07% uplift in hourly pay rather than providing paid time off. Employers using this method must clearly identify the holiday pay element in pay statements and ensure workers are not disadvantaged.
The Worker Protection (Amendment of Equality Act 2010) Act 2023 introduces a new positive duty on employers to take reasonable steps to prevent sexual harassment. This proactive obligation goes beyond simply responding to complaints — employers must conduct risk assessments, implement preventive measures including staff training and clear reporting procedures, and review policies regularly. Employment Tribunals can increase compensation by up to 25% where an employer breaches this duty, creating significant financial incentives for compliance.
Changes to fire-and-rehire practices have been introduced through a new statutory code of practice. Employers contemplating changes to terms and conditions must follow a fair consultation process, and tribunals must take the code into account when determining relevant claims. An unreasonable failure to follow the code can result in compensation being increased by up to 25%.
At Masl Legal, our Employment Law team advises employers and senior employees on all aspects of these legislative changes. We help businesses update policies, train management, and ensure full compliance.
Employers who take early action will be in the strongest position to manage their workforce effectively and minimise legal risk. We recommend a comprehensive review of employment contracts, handbooks, and management procedures to ensure compliance with the new framework.
