Employment law changes to prepare for in 2026

Another year brings new challenges and opportunities for UK businesses. As we move through 2026, the employment law landscape continues to evolve in response to changing working patterns, technological advances, and growing expectations around fairness and wellbeing at work.

Staying on top of employment law is not just about avoiding tribunal claims or regulatory penalties – although that will always matter. It is also about building a workplace that attracts and retains talent, treats people fairly, and stands up to scrutiny from regulators, clients, and employees alike.

We know that keeping track of legal updates, consultations, and emerging best practice can feel overwhelming. That is why we have broken down the key employment law developments and trends UK employers should be preparing for in 2026, alongside practical steps you can take now to stay compliant and confident.

The growing role of AI in recruitment and workforce management

Artificial Intelligence is now embedded in many HR processes, from CV screening and interview scheduling to shift allocation and performance monitoring. While the UK has not introduced standalone AI employment legislation, regulators are increasingly clear that existing laws already apply.

Transparency and human oversight

Under UK GDPR, workers and candidates already have the right to challenge decisions that are made solely by automated means where those decisions have a legal or similarly significant effect. In practice, this means employers should not rely entirely on algorithmic outputs for decisions such as dismissal, disciplinary action, or rejection at recruitment stage.

Regulatory guidance continues to emphasise transparency. Employers are expected to be clear about when automated tools are used, what data they rely on, and how human decision-makers remain involved. This is likely to be an area of increased scrutiny throughout 2026.

Managing bias and discrimination risk

There is currently no legal requirement in the UK to carry out formal bias audits on AI recruitment tools. However, employers remain fully responsible under the Equality Act 2010 for ensuring their recruitment and management practices do not discriminate against individuals with protected characteristics.

As AI tools become more common, organisations are increasingly expected to demonstrate that they have taken reasonable steps to identify and mitigate bias, particularly where technology is used to shortlist candidates or assess performance.

Practical steps to take:

• Audit your HR technology to understand where AI or automated decision-making is used.
• Update privacy notices so candidates and employees understand how their data is used.
• Ensure managers understand that AI outputs are a support tool, not a substitute for human judgement.

Pay transparency and fair pay practices

Pay transparency remains high on the agenda in the UK, driven by ongoing gender pay gap reporting requirements, public scrutiny, and consultations on potential future reforms. While some measures seen in other countries are not yet law in the UK, expectations around openness are clearly increasing.

Salary information in job adverts

There is currently no legal requirement to include salary ranges in job adverts in the UK. However, many employers are choosing to do so voluntarily to improve candidate trust, reduce recruitment friction, and demonstrate a commitment to fair pay.

With pay transparency reforms remaining under discussion, publishing salary ranges is widely viewed as a proactive step rather than a legal obligation.

Moving away from salary history questions

UK employers are still legally permitted to ask candidates about their salary history. That said, this practice carries risk. Relying on previous pay can perpetuate existing pay gaps and may undermine efforts to demonstrate fair and objective pay structures.

As a result, many employers are shifting their focus towards role-based pay and asking candidates about their salary expectations instead.

Practical steps to take:

• Review and refresh salary benchmarking to ensure pay bands are defensible and market aligned.
• Train hiring managers on appropriate and consistent pay conversations.
• Review internal pay structures before increasing transparency externally.

Increased focus on employee wellbeing and mental health

Employee wellbeing has moved beyond awareness campaigns and into the realm of accountability. While no entirely new mental health legislation has been introduced, regulators are placing greater emphasis on enforcing existing duties.

Working hours and the ‘always-on’ culture

The UK does not currently have a statutory ‘Right to Disconnect’. However, long working hours and constant availability continue to pose legal and wellbeing risks, particularly where they contribute to stress, burnout, or working time breaches.

Employers are increasingly expected to set clear boundaries around working hours and model healthy behaviours at leadership level.

Managing stress as a workplace risk

Employers already have a legal duty under health and safety legislation to assess and manage risks to employees’ mental health where work-related stress is foreseeable. This includes identifying stressors such as excessive workloads, lack of role clarity, or poor management practices.

In 2026, the focus is less on new rules and more on enforcement and evidence. Employers should be able to show that stress risks have been assessed and that reasonable steps are being taken to reduce them.

Practical steps to take:

• Clearly define expected working hours and availability in contracts and policies.
• Encourage managers to use tools such as scheduled email sending to avoid out-of-hours pressure.
• Provide training for managers on recognising and responding to stress at work.

Family-friendly rights and caring responsibilities

The way families balance work and caring responsibilities continues to evolve, and employment law is gradually adapting in response.

Shared parental leave

Shared Parental Leave remains unchanged in law and continues to be underused due to its complexity and financial implications. While reform has been discussed at policy level, no confirmed legislative changes have been introduced.

That said, employers who simplify processes internally or enhance pay during leave often see higher engagement and retention.

Carer’s leave

The Carer’s Leave Act introduced a statutory right to up to five days of unpaid carer’s leave per year for employees with caring responsibilities. There is currently no statutory entitlement to paid carer’s leave, but many employers are choosing to offer paid leave as an enhanced benefit.

With an ageing population, supporting carers is increasingly seen as a key part of an inclusive employment strategy.

Practical steps to take:

• Update family leave and carer policies to reflect current legal entitlements.
• Clearly communicate available support so employees understand their options.
• Consider whether enhanced or paid carer’s leave aligns with your wider wellbeing strategy.

Preparing your business: A practical compliance checklist

Keeping up with employment law does not have to be reactive. Taking proactive steps now can reduce risk and strengthen your workplace culture.

• Review your policies – Ensure your employee handbook reflects current practices around technology use, working hours, and wellbeing.
• Train your managers – Line managers play a critical role in compliance, particularly around recruitment, pay discussions, and managing workload.
• Audit your systems – Understand what HR technology you use and how it aligns with data protection and equality obligations.
• Check your culture – A company culture built on transparency, fairness, and respect makes legal compliance far easier to achieve.

Conclusion

The overarching direction of travel for employment law and regulation in the UK is clear: greater fairness, transparency, and accountability. While not every development discussed represents a new legal obligation, each reflects the expectations regulators, employees, and the wider market increasingly place on employers.

Preparing early allows businesses to stay compliant while also building a workplace where people feel valued and supported.

At SafeHR, we help businesses navigate employment law with clarity and confidence. Whether you need support reviewing policies, training managers, or responding to a complex HR issue, our team of expert HR consultants is here to help.

Staying proactive is not just about following the rules – it is about doing the right thing for your people and your business.

Disclaimer: This blog post is for general information only and does not constitute legal advice. Employment law is subject to change, and businesses should seek professional advice tailored to their specific circumstances.