Employment Law Coffee Break: AI and privilege, employment law reforms update, and new guidance on equality action plans

AI and privilege: understanding the risks and actions to take

With AI tools becoming embedded in business practices and processes, employers need to give careful consideration to how they are accessed, used and the impact on their data and confidential and sensitive business information.

Our specialist Disputes and Risks lawyers look at the risks for businesses when using AI tools in the context of privileged and confidential communications (whether by uploading documents or entering prompts). This follows a recent decision of the Upper Tribunal (Immigration and Asylum Chamber) which directly comments on the implications for legal professional privilege if privileged material is placed in AI tools. While not binding on the High Court, it is likely to be persuasive – but a number of unanswered questions remain. 

Updates to court guidance are expected in this area and further developments are anticipated: including the outcome of the Civil Justice Council's consultation on the use of AI in preparing court documents.

As the capabilities of AI technologies are rapidly evolving and jurisprudence has yet to keep pace, lawyers and clients should be adopting clear AI-usage policies to mitigate these untested risks.

Employment law reforms: Getting ready for April 2026 and new guidance and consultations published

With employment law reforms now being implemented at pace, as part of our regular Eating Compliance for Breakfast series, our lawyers Amy Moylett, Alexandra Farrell Thomas and Shaziya Kurmani are hosting a webinar on Thursday 9 April 2026 at 9am. They will look at what employers and agencies must do now to prepare for the 2026/2027 reforms. Register here.

A number of legislative reforms will come into force on 6 April, and the government has published new guidance and consultations. 

On 6 April, businesses will see:

• doubling of maximum protective award from 90 to 180 days' pay per affected employee for collective redundancy consultation failures;
• statutory sick pay payable from day one of absence with the removal of the lower earnings limit;
• statutory paternity leave and unpaid parental leave become day one rights and employees will be entitled to take paternity leave before or after shared parental leave;
• a new right to bereaved partners paternity leave;
• protected disclosures expressly extended to include sexual harassment concerns; and
• simplified processes introduced for trade union recognition.

The new Fair Work Agency is also set to launch in April 2026. While regulations have been laid which will give it the power to start taking some enforcement action in its own name, the timeline is still unknown for when it will take over enforcement action in relation to the national minimum wage from HMRC and also become responsible for enforcing holiday pay and statutory sick pay.

April will also see increases to the statutory minimum wage and the statutory minimum pay rates and family leave rates coming into effect and also new umbrella company tax legislation which introduces joint and several tax liability between umbrella company and agency (or in some cases, end hirers) for any failure by the umbrella company to pay full PAYE and NICs to HMRC.

New consultations published

The government's commitment to undertake "extensive engagement and consultation" on the implementation of its Plan to Make Work Pay and the Employment Rights Act 2025 has seen a number of consultations published including on flexible working; strengthening the law on tipping; fire and rehire; and changes to expenses, benefits and shift patterns; the recognition code of practice and balloting unfair practices; and modernising the agency work regulatory framework.

The outcome of these consultations will shape future regulations bringing the reforms in the Employment Rights Act 2025 into force.