This year brings in a raft of new employee laws and regulations that will directly affect organisations. Founders and HR leaders need to take a proactive action to be ready for significant changes across a number of legal areas, some crucially aimed at marketing and consumer protection. Key areas of focus will include corporate transparency, substantial employment law reforms, and evolving technology regulations.
As a Commercial Lawyer I have experience of many business Founders coming to me with legal issues that can cost them dearly if they don’t have the correct legal documentation to hand. The HR community will need to ensure their documents are updated to meet the demands 2026 will bring. Here I outline what legislation is coming, why it matters, and what steps you should take. I strongly encourage HR teams to ensure their employment contracts are compliant, and their data and security policies are updated and robust to make 2026 and beyond, as smooth as possible.
Key Employment Law Changes for Organisations: April 2026 Onwards
Founders must be aware of several new employment law changes taking effect in 2026:
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Statutory Sick Pay (SSP) Reforms: The lower earnings limit will be removed, making SSP available to more low-paid employees. Additionally, the three-day waiting period for payment will be removed.
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Paternity Leave Rights: Paid Paternity Leave will also be available from day one of employment.
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Stronger Anti-Harassment Duties: Business owners will be required to take reasonable steps to prevent sexual harassment of employees, which includes harassment by customers or clients. Employers who fail to comply may face compensation penalties.
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Restrictions on ‘Fire and Rehire’: There will be restrictions on the practice of dismissing employees and then re-engaging them on worse terms.
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Unfair Dismissal Claims: The time limit for employees to bring unfair dismissal claims will be extended from three months to six months.
The consequences for failing to meet these responsibilities could result in financial penalties that significantly damage your organisation in the form of employment tribunal costs, reputational damage and management time administering employee claims. Ensure you know exactly what is required of your organisation.
Global Technology Issues Affecting Businesses
In 2026, businesses will face increasing responsibility for how their technology impacts individuals and society.
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Data Protection: We can expect greater GDPR enforcement and potential UK-specific divergence, with an increased focus on compliant international data transfers.
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Emerging AI Regulation: Regulation is emerging for Artificial Intelligence, demanding greater transparency and accountability. This will necessitate the development of AI governance frameworks and clear ethical guidelines.
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Cybersecurity: There will be increased regulatory requirements for cyber resilience and growing liability for companies following data breaches. In addition, businesses are more alive to cyber security risks and this will result in greater scrutiny of security measures when entering into supply contracts, particularly tech based contracts.
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AI Governance: 2026 will see the emergence of sector-specific AI rules and the requirement for human oversight of automated decision-making.
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Consumer Protection:
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Subscription-based businesses will have to be clearer in their cancellation processes and must send reminders about renewals, providing easier opt-out options for consumers.
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There will be a ban on fake reviews for products and services, including the prohibition of commissioning, hosting, or publishing them.
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Business owners are facing a new raft of compliance demands and potential penalties.
Getting Your Legal Documentation in Order
From now and over the next six months, HR teams and business Founders should focus on getting their ‘house in order’ by overhauling their legal documentation. Understanding what is legally demanded of you is paramount. To be forewarned is to be forearmed!
If you are struggling to update old legal documents such as employment contracts or compliance policies, consider adopting a shizl contract or document. You can be rest assured we have contracts and documents designed to fit your business needs.