Key employment law updates | June 2026

Welcome to our monthly update, where we highlight key employment law developments and upcoming changes.

Fit note reform and WorkWell pilots: greater focus on keeping people in work

The Government has announced the next stage of its fit note reform programme, alongside publishing the results of its earlier call for evidence. Four pilots will begin from July 2026 in different areas of England to test new approaches to supporting workers who fall ill, with a greater focus on tailored “stay in work” and “return to work” plans. The pilots are due to be shaped by patients, healthcare staff and employers, and will last up to a year.

The published findings highlight a clear disconnect between employers’ experience of the current fit note system and the views of some other stakeholders. Six in ten employers think the current process is ineffective at supporting their employees' work and health needs. Employers reported that “may be fit for work” notes often lack sufficient detail to be genuinely useful in practice, particularly in relation to workplace adjustments, timelines and practical next steps. Healthcare professionals also identified time pressures, limited occupational health knowledge and poor access to relevant information as barriers to more effective work and health conversations.

For employers, the direction of travel is clear. The Government is moving towards a more interventionist and practical model of sickness absence support, with greater emphasis on keeping employees connected to the workplace wherever possible. Employers may therefore wish to review return-to-work processes, management capability and the quality of work-related information available where health issues arise.

Related to this, the Government has also published early findings from the WorkWell pilots, which are aimed at helping disabled people and those with health conditions remain in or return to work through locally delivered support. The findings suggest that many participants face overlapping barriers, particularly around mental health, and that person-centred support is generally well received. Although these are not direct changes to employer obligations, they reinforce the wider policy focus on reducing health-related economic inactivity and supporting more sustainable participation in work.

Company cars: advisory fuel rates updated from 1 June 2026

HMRC has updated the advisory fuel rates for company cars, with the revised rates applying from 1 June 2026. These rates are relevant where employers reimburse employees for business travel in company cars, or where employees repay the cost of fuel used for private travel.

This is not a major employment law development, but it is a practical point for employers operating company car schemes or reimbursing mileage through payroll and expenses processes. Employers may wish to ensure that internal systems and policies have been updated to reflect the new rates. The updated rates can be found here.

New obligation to handle data protection complaints

A new statutory obligation under the Data (Use and Access) Act 2025 came into force on 19 June 2026, requiring organisations subject to the UK GDPR to have a process for handling data protection complaints. This applies to employers as data controllers in respect of employee, worker, candidate and other HR-related personal data.

The new rules mean individuals can raise data protection complaints directly with an organisation (i.e. data controller) first, easing the burden on the Information Commissioner's Office ("ICO"). Employees do not need to use legal terminology or label their concern as a formal complaint. A statement such as “I do not think you should be using my information in that way” may be enough to trigger the organisation’s complaints-handling obligations.

Organisations must now:

• provide individuals with a way to make data protection complaints;
• acknowledge complaints within 30 days of receipt;
• take appropriate steps to respond without undue delay, including making appropriate enquiries and keeping the individual informed; and
• tell the individual the outcome of the complaint without undue delay.

This is a notable shift for employers. Previously, many data protection concerns were escalated directly to the ICO. The new regime places more responsibility on organisations to identify, investigate and resolve complaints internally before matters escalate. Failure to operate an effective complaints process could itself create data protection compliance risk and organisations could face severe regulatory penalties ranging from statutory enforcement notices to substantial fines.

For employers, this is particularly relevant in HR contexts where employees may raise concerns about subject access requests, monitoring, workplace investigations, sickness absence data, disciplinary records, recruitment checks or the sharing of personal data internally. Employers should ensure that managers and HR teams are trained to recognise data protection complaints, even where they are raised informally. The ICO has published useful guidance on what employers should do to meet these new requirements which can be accessed here.

Practical steps for employers

Employers should:

• check that employees and other individuals have a clear route for raising data protection complaints;
• update privacy notices, employee handbooks or data protection policies where needed;
• ensure HR, managers and data protection teams know how to recognise and escalate complaints;
• put in place a process for acknowledging complaints within 30 days;
• keep records of complaints, investigations, responses and outcomes; and
• ensure complaints are triaged appropriately where they overlap with grievances, DSARs, whistleblowing reports or employment disputes.

Trade union recognition: CAC forms updated

The Central Arbitration Committee (CAC) has updated its statutory recognition application and response forms following changes introduced by the Employment Rights Act 2025. The updated forms must be used for all new statutory recognition applications submitted on or after 6 April 2026.

The changes reflect the reshaping of the statutory recognition process. In particular, unions are no longer required to demonstrate, at the application stage, that a majority of workers in the proposed bargaining unit are likely to support recognition. Where recognition is decided by ballot, the previous requirement for at least 40% of the bargaining unit to support recognition has also been removed, meaning that recognition will now be determined by a simple majority of votes cast.

For employers, this is a practical but important procedural change. Businesses receiving a statutory recognition request should ensure they use the updated CAC response form and seek advice promptly, as the changes may make it easier for unions to progress recognition applications. Employers may also wish to review their existing employee engagement arrangements, particularly where there is increased union activity or where parts of the workforce may be more receptive to collective representation.

Employment Rights Act 2025 – further implementation steps

The next phase of implementation under the Employment Rights Act 2025 continues to take shape, with June bringing important developments on unfair dismissal and wider labour market reform. For a full timeline of all upcoming and future changes, please see our timeline here.

Unfair dismissal reforms: timetable now confirmed

The Employment Rights Act 2025 (Commencement No. 4 and Transitional and Saving Provisions) Regulations 2026 have now been made. These Regulations confirm that the key unfair dismissal reforms, namely the reduction of the qualifying period from two years to six months, and the removal of the compensation cap, will take effect from 1 January 2027.

Part of the Regulations comes into force on 1 July 2026 to enable consequential amendment powers to be exercised, but the substantive changes do not take effect until the start of 2027.

The transitional position will be important for employers. Although the new regime will apply where the effective date of termination falls on or after 1 January 2027, in some cases, dismissals which take place shortly before that date may still fall within the new regime. For example, where statutory notice provisions extend the termination date. This means businesses should avoid assuming that dismissals made near the year-end will automatically be governed by the current rules.

Stakeholder concerns on compensation reform

The Department for Business and Trade has also published a summary of stakeholder roundtables on the unfair dismissal reforms. Stakeholders broadly recognised that many claims currently fall below the statutory cap and that the method for calculating compensation will not change. However, concerns were raised that removing the cap could still affect business decisions, particularly in relation to higher-paid roles, recruitment and investment.

There was also a clear theme around the need for further guidance, especially for employers dealing with more senior or executive-level dismissals, as well as concern about tribunal capacity and the wider dispute resolution system.

For employers, the practical takeaway is that preparation should begin well before 2027. Probation processes, early-stage performance management, dismissal procedures and manager training are all likely to come under greater scrutiny once unfair dismissal protection is acquired much earlier in the employment relationship.

Whistleblowing: prescribed persons expanded

Changes to the prescribed persons regime under the whistleblowing law took effect on 2 June 2026. A number of additional bodies have been added to the list of regulators and authorities to whom workers can make protected disclosures.

Of particular relevance to legal sector employers, the changes include the Law Society and bodies exercising delegated Law Society powers, including the Solicitors Regulation Authority. More broadly, this development is a useful reminder for all employers to keep whistleblowing policies under review and to ensure managers understand that workers may choose to raise concerns externally as well as internally.

For employers, this underlines the importance of maintaining credible internal reporting routes, promoting confidence in speak-up procedures, and ensuring concerns are taken seriously and addressed promptly before they escalate externally.

Consultations

Zero hours and similar contracts

Consultation closes: 25 August 2026

The Government has launched a consultation on the detailed regulations needed to implement the new Employment Rights Act 2025 protections for zero hours and similar contracts.

The consultation covers three key future rights:

• a right to guaranteed hours reflecting hours worked over a reference period;
• a right to reasonable notice of shifts and changes to shifts; and
• a right to payment for shifts cancelled, curtailed or moved at short notice.

The consultation also addresses how these protections should apply to agency workers and how enforcement may operate in practice. For employers that rely on variable-hours, casual or agency labour, we would encourage you to submit your views on these reforms. Employers can respond online (which is the Government's preferred method) or submit responses via email, both options are available here.

Employment rights for unpaid carers and parents of seriously ill children

Consultation closes: 1 September 2026

The Government has launched a consultation on strengthening workplace rights for unpaid carers and parents of seriously ill children. It considers whether the current framework, including the existing entitlement to unpaid carer’s leave, remains fit for purpose.

Options under consideration include:

• extending the current unpaid leave entitlement;
• introducing a statutory “right to return” after a longer period of caring-related absence; and
• creating a paid carer’s leave entitlement.

The consultation also includes a specific chapter on potential rights for parents and caregivers in the immediate aftermath of a child’s serious illness diagnosis.

Given the potential implications for absence management, family-related leave and operational planning, employers are encouraged to engage with this consultation. Employers can respond online (which is the preference) or submit responses via email, both options are available at this link.

Available training for managers

Given the significant changes being brought about by ERA 2025, there is no better time to upskill your managers via our transformational management development programmes to reduce risk, increase engagement, and enhance motivation.

Our programmes involve utilising unique accelerated learning techniques that will boost people management skills for years to come, suitable for supervisors up to board level. 

Furthermore, our seamless programmes link in with your policies and templates to bring about impactful change (with practical templates to bring your policies to life, if required). We link below further information on four of our flagship programmes:

Details of our current programmes are as follows:

• 21st Century: An innovative four-day management development programme designed to equip managers with essential skills, knowledge, and behaviours to effectively manage performance and improve workplace culture.
• Gender Diversity: We know that managers and employees lack confidence talking about gender diversity and managing a diverse workforce. That is why we've created this bespoke training programme to help you get ahead and shape your culture.
• Inclusive Leadership: We may not notice our unconscious biases, but they still influence our actions and beliefs. For leaders, it is crucial to recognise those biases and lead inclusively which is the focus of our one-day Inclusive Leadership programme.
• Prevention of Sexual Harassment: With a duty to take proactive steps to prevent sexual harassment (such as training) introduced last year, it is more important than ever to act. This programme equips your workforce with the tools needed to identify and take conscious steps to prevent workplace sexual harassment.
• Upskill Managers to Manage: We can support you to navigate the challenges of integrating teams effectively to maximise post-integration success, emphasising the need for strong management, strategic alignment, and collaboration to overcome cultural differences and mitigate risks in an increasingly competitive market.
• Improve Employee Health & Resilience: Improving the health and wellbeing of your people is a key requirement to driving a successful business. By educating employees on health and wellbeing strategies, we can help you to gain the competitive edge as your people improve their energy, productivity and overall wellbeing. Our wellbeing programmes deliver educational, fun and interactive sessions that are empowering and revealing.

Please contact Joanne Boyle, Legal Director, if you would like to discuss further how we can support your organisation.