The government is consulting on significant reform of the rules governing agency work and umbrella companies, with implications for businesses across multiple sectors.

The government has published updated factsheets explaining how the Employment Rights Act 2025 will reshape key areas of employment law, with a particular focus on implementation and what will change in practice for employers.

The government has launched a consultation on a revised Code of Practice governing access and unfair practices during trade union recognition and derecognition processes, alongside proposals to update the law on unfair practices to support electronic balloting. The changes will affect how employers engage with unions from an earlier stage in the process and will increase scrutiny of employer conduct.

On 18 December 2025, Labour's Employment Rights Bill became law. The Employment Rights Act 2025 marks the most significant change in employment rights in a generation, promising sweeping reforms to strengthen workers' protections across the UK.

The Employment Rights Bill is poised for another round of parliamentary "ping-pong", as one key disagreement between the House of Commons and the House of Lords persists.

2026 is set to bring significant changes to employment law in England and Wales, creating new challenges and opportunities for employers.