Employment, contingent workforce and immigration | UK Regulatory Outlook May 2026

Employment 

Industrial relations reforms: three changes not to overlook 

The Employment Rights Act 2025 (ERA) introduces wide-ranging reforms to the UK industrial relations landscape that risk being overshadowed by other high-profile reforms, including those on unfair dismissal, fire and rehire, and harassment. 

Three key changes under the ERA are aimed at making it easier for unions to gain recognition in workplaces: the simplification of statutory recognition, new rights of access, and a duty to inform workers of their right to join. Union focus is also shifting from traditional industries such as manufacturing and engineering to sectors such as retail, media and technology. 

Businesses operating in these sectors (many of which have historically had limited exposure to union engagement) should take particular note of the industrial relations reforms introduced by the ERA. See this Insight for more on the scope of these reforms and the proactive steps employers can take to prepare for them. 

Structuring the provision of death benefits in the workplace effectively 

Employers who provide death in service benefits can offer meaningful financial support to employees and their families, but only if those schemes are structured correctly, members understand what is and is not covered, and those responsible for administering the scheme are ready to act when the worst happens.  

With changes to the tax treatment of pension scheme death benefits due to take effect from 6 April 2027, the choice between a registered scheme and an excepted group life scheme is becoming increasingly important for a wider group of employees. See more details on the upcoming changes. 

Contingent workforce 

The Working Lives report (commissioned by the former Office of the Director of Labour Market Enforcement for the newly-established Fair Work Agency (FWA)) is designed as the baseline evidence set for the FWA's first strategy under the ERA.  

Its findings will influence how the FWA, which was launched in April, prioritises sectors, business models and enforcement activity through to and beyond its first strategy in 2027. The report clearly signals to agencies, umbrella companies and platforms the importance of evidencing supply chain engagements and payments and of ensuring that self-employed engagements are genuinely defensible. Sellers should prepare for more focus on these areas in sale and investment due diligence. See this Insight for more detail. 

Immigration  

Nothing to report this month.