As 2025 draws to a close, now is the time to ensure your business is ready for the significant employment law changes coming in 2026.
As 2025 draws to a close, now is the time to ensure your business is ready for the significant employment law changes coming in 2026. Use this checklist to tackle the essentials before the new year.
Why it matters: The sexual harassment prevention duty is now in force. Employers must take reasonable steps to prevent harassment in the workplace.
What to do: Review your policies, ensure they’re accessible to all staff, and check you have clear reporting procedures in place.
Resources needed: HR team review, legal advice if needed.
Priority level: HIGH – Legal requirement already in force.
Why it matters: The Government has introduced tougher penalties for fire and rehire practices. Non-compliance can result in significant compensation awards.
What to do: Review any restructuring plans and ensure proper consultation processes are followed.
Resources needed: Legal review of procedures.
Priority level: HIGH – Penalties now apply.
Why it matters: BRPs expired on 31 December 2024. All visa holders should now have eVisas, and you need to verify immigration status digitally.
What to do: Re-check the right to work for all employees and contractors. Familiarise yourself with the online checking system.
Resources needed: HR team training on eVisa checks.
Priority level: URGENT – Failure to check can result in civil penalties up to £60,000 per illegal worker.
Why it matters: Reforms to zero-hours contracts are expected as part of the Employment Rights Bill.
What to do: Review your current contracts and identify workers who may be affected by guaranteed hours requirements.
Resources needed: Contract review, workforce analysis.
Priority level: MEDIUM – Changes coming in 2026.
Why it matters: From autumn 2026, unfair dismissal rights will apply from day one of employment, fundamentally changing probation periods.
What to do: Review your probation policies, dismissal procedures and employment contracts. Consider how you’ll manage underperforming new starters.
Resources needed: Policy rewrite, manager training.
Priority level: HIGH – Major change coming autumn 2026.
Why it matters: National Living Wage and National Minimum Wage will increase in April 2026. You need to budget for the impact on your payroll.
What to do: Calculate the cost increase across your workforce and adjust your budget accordingly.
Resources needed: Payroll analysis, financial planning.
Priority level: MEDIUM – Plan now to avoid cash flow issues.
Why it matters: Statutory payments (SSP, maternity pay, etc.) increase annually in April.
What to do: Ensure your payroll system is ready to implement the increases automatically.
Resources needed: Payroll system update.
Priority level: MEDIUM – Deadline April 2026.
Why it matters: Following the Supreme Court’s Next case, equal pay claims remain a significant risk for employers with different terms for different groups of workers.
What to do: Review your pay structures, particularly if you have warehouse and retail workers or other distinct groups doing similar work.
Resources needed: Pay audit, legal advice.
Priority level: HIGH – Financial risk from equal pay claims can be substantial.
Why it matters: The right to request flexible working has been strengthened, with employees able to make requests from day one.
What to do: Update your policies and train managers on how to handle requests fairly and consistently.
Resources needed: Policy update, manager training.
Priority level: MEDIUM – Already in force but worth reviewing.
Why it matters: From spring 2026, the Statutory Sick Pay (SSP) waiting period will be removed, meaning you’ll pay SSP from day one of sickness.
What to do: Review your sick pay policies and budget for the additional cost. Consider updating absence management procedures.
Resources needed: Policy review, financial planning.
Priority level: HIGH – Change coming spring 2026.
Why it matters: There are restrictions on using NDAs to prevent disclosure of harassment or discrimination. Non-compliant NDAs may be unenforceable.
What to do: Review your standard settlement agreement templates and remove any problematic clauses.
Resources needed: Legal review of templates.
Priority level: MEDIUM – Avoid unenforceable agreements.
Why it matters: If you sponsor overseas workers, the Home Office can inspect your compliance at any time. Non-compliance can result in licence revocation.
What to do: Conduct a full audit of your sponsor licence records, right to work checks, contact details and reporting obligations.
Resources needed: HR audit, immigration specialist review.
Priority level: HIGH – Licence revocation would prevent future sponsorship.
Why it matters: The Immigration Skills Charge increased by 32% in December 2024. Further increases may follow in 2026.
What to do: Review your international hiring plans and budget for higher visa and sponsorship costs.
Resources needed: Financial planning, immigration cost analysis.
Priority level: MEDIUM – Plan ahead for cost management.
Why it matters: Your managers will be on the front line of implementing the Employment Rights Bill changes. They need to understand what’s coming.
What to do: Schedule training sessions covering day-one unfair dismissal rights, SSP changes, and flexible working enhancements.
Resources needed: Training programme, external trainers or legal advisers.
Priority level: HIGH – Managers need time to prepare.
Why it matters: Employment tribunal time limits have been extended in some cases. You need to retain employment records for longer to defend claims.
What to do: Review your document retention policy and ensure you’re keeping records for at least six months after employment ends (longer for immigration records).
Resources needed: Policy review, IT/storage capacity check.
Priority level: MEDIUM – Protects against future claims.
Tackling all 15 items might feel overwhelming, but breaking them down by priority will help:
Do now (before end of December 2025):
Do in January 2026:
Do before April 2026:
Ongoing:
Getting through this checklist doesn’t have to be a burden. Our employment and immigration law specialists can guide you through each item, conduct compliance audits and provide the training your team needs.
Contact Davenport Solicitors today and start 2026 with confidence.
Disclaimer
The material contained on this website contains general information only and does not constitute legal or other professional advice and should not be relied upon as such. While every care has been taken in the preparation of the information on this site, readers are advised to seek specific advice in relation to any decision or course of action.
