As 2026 begins, UK employers are facing several important employment law developments. Recent changes introduced by the Employment Rights Act 2025 strengthen worker protections and increase employer obligations, making it a good time for businesses to review contracts, workplace policies, and HR procedures.
Further changes are on the way from 6 April 2026, when statutory sick pay eligibility will be expanded to cover more workers. Employers should prepare now by updating payroll systems and absence management policies to avoid compliance issues.
A new consultation has also been launched on non-financial misconduct in the financial services sector, reflecting increased regulatory focus on workplace culture, personal conduct, and accountability beyond purely financial risk.
Recent case law has provided useful guidance for employers. The Court of Appeal confirmed that former employees can pursue whistleblowing detriment claims even after resignation, and that legal action against whistleblowers is only lawful where it is genuinely unrelated to protected disclosures and not retaliatory. In another case, an employee was unable to recover unfair dismissal compensation after their employer became insolvent before a tribunal decision was made, prompting the Employment Appeal Tribunal to encourage insolvency practitioners to allow cases to continue where possible.
Employment tribunals have also considered sensitive workplace issues. One tribunal ruled that allowing access to workplace toilet facilities based on an employee’s chosen gender did not amount to unlawful discrimination, while stressing the importance of proper consultation with staff. In a separate decision, a non-binary employee was unsuccessful in a gender reassignment discrimination claim, with the tribunal finding that current legal protection requires an intention to transition from one sex to another. Further clarification from higher courts is expected.
Together, these developments highlight the need for employers to stay alert to legal changes, handle workplace disputes carefully, and ensure policies reflect both legal requirements and fair, respectful practice.
