HR and future of work · Industry brief

The UK government is implementing a significant programme of employment law reforms across 2026 and 2027, with the first major changes scheduled for April 2026, followed by additional measures in October 2026 and throughout 2027. Key reforms in April 2026 include statutory sick pay reform extending coverage from day one of absence, day-one family leave rights for paternity and parental leave, increased collective redundancy protective awards from 90 to 180 days' gross pay, and establishment of a Fair Work Agency to coordinate enforcement of minimum wage, holiday pay and labour exploitation. October 2026 brings restrictions on dismissal and re-engagement practices, strengthened sexual harassment prevention duties requiring all reasonable steps, extended employment tribunal time limits from three to six months, and enhanced trade union rights. During 2027, unfair dismissal protections are expected to apply earlier than the current two-year qualifying period, guaranteed hours rights are anticipated for zero-hours and low-hours workers, flexible working refusals must be reasonable, enhanced pregnancy and maternity protections are planned, and regulations may require larger employers to address gender pay gaps and menopause support. Employers are advised to conduct workforce audits, review contracts, update policies, examine workforce data for compliance triggers, train managers on new requirements and improve record-keeping practices before implementation phases begin.

DoorDash agreed to a $115 million settlement to compensate approximately 264,000 delivery workers for underpayment due to inaccurate recordkeeping of time spent accessing the app and waiting for pickups, as announced by New York City Mayor Zohran Mamdani. Union leadership is mobilizing members to prioritize AI limits in contract negotiations, particularly focusing on preventing AI implementation for worker discipline or evaluation without human review and grievance opportunities. State attorneys general are increasingly enforcing diversity, equity and inclusion compliance, with Florida's lawsuit against Starbucks exemplifying new employer concerns beyond existing federal DEI rules.