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Social Issues, Regulation

Prediction: The biggest shake up of employment law for a generation will raise significant challenges for UK businesses in 2026 and beyond

Social Issues, Regulation
D&O and Financial Institutions
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Prediction

The Employment Rights Bill is a key priority for the UK government and reflects many of its manifesto commitments to strengthen workers' and trade union rights. The first changes will be introduced shortly after Royal Assent (expected late 2025) but there are more significant changes happening in April and October 2026, followed by a raft of changes in 2027, including the abolition of two years' service to bring an unfair dismissal claim, which will inevitably increase claims. In 2026, all businesses will need to deal with trade unions having the right to access their premises as well as having digital access too. They will also have to increase steps to prevent sexual harassment, as well as facing potential liability for the harassment of employees by third parties such as customers, clients and suppliers. Large employers will be expected to produce gender equality action plans in 2027, even though there may be a roll-back on diversity, equity and inclusion in the United States. All these changes are significant and, when coupled with the doubling of employment tribunal time limits from three months to six months, mean the exposure to claims is equally increased.

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