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

Employment

Latest ERA developments: more reforms in force this October

The next wave of reforms under Employment Rights Act (ERA) come into force in October 2026 and January 2027. However, over the summer, the government pushed back the date for a number of reforms from 1 October to 30 October 2026.

The one reform which will still come in on 1 October 2026 is the extension to the time limits for bringing most tribunal claims from three to six months. The extended time limit will apply where the "relevant date" of the date of the act, conduct or failure complained of (or the date of the last act or failure in a series) falls on or after 1 October. Employers will face a greater period of uncertainty during which a claim may be made and this, coupled with ongoing delays in the tribunal system, means steps must be taken to capture witness evidence and to preserve documentary evidence.

Reforms now set to come into force on 30 October 2026 include:

• strengthening trade unions' right of access;
• new rights and protections for trade union representatives;
• requiring employers to take "all reasonable steps" to prevent sexual harassment of their employees; and
• introducing an obligation on employers not to permit the harassment of their employees by third parties.

The government has published a statement in response to its consultation on the new right under the ERA requiring employers to provide a statement to workers of their right to join a trade union. It has now confirmed that this duty "is intended to come into force between December 2026 and January 2027" (it was previously expected October 2026).

The full list of reforms can be found on Osborne Clarke's microsite. We also have a practical tracker setting out actions to take in the run up to the reforms coming into force and guiding you through the associated actions and considerations; please speak to your Osborne Clarke contact for further details.

Government publishes responses to two more consultations on ERA reforms

The government has published its response to the Make Work Pay consultation on leave for bereavement including pregnancy loss, looking at the detail of the new statutory day one right provided for in the ERA. The new right is set to come into force in April 2027.

It has also published its response to the Make Work Pay consultation on improving access to flexible working, confirming that both a new statutory process before rejecting a flexible working request and the introduction of a statutory requirement of reasonableness when rejecting a request will be implemented via regulations. These changes are intended to take effect in autumn 2027.

Read more in our latest Employment Law Coffee Break.

Upcoming webinar: new harassment prevention duties under the Employment Rights Act

The next instalment in our Employment Rights Act webinar series, "Every step you take: the new harassment prevention duties," takes place on Monday 12 October at 10am. The session will cover what is coming into force and what "prevention" means in practice, from policies and training through to culture and enforcement. Register here.

This follows our first webinar in the series, "You're (not so easily) fired: the new era of unfair dismissal," in which partners Vic Parry and Olivia Sinfield and associate directors Emma Ladey and Natalie Paddock explored how forthcoming changes to unfair dismissal rights will affect the risk and cost of dismissals, including a significant shift in exposure for executive dismissals, alongside practical steps for employers adjusting to the new legal landscape. If you missed it, catch up here.

Contingent workforce

Right-to-work reform extends liability along supply chains from 1 October

From 1 October 2026, the right to work framework extends civil penalty liability beyond direct employers to businesses using contractors, agencies, platforms and subcontractors, under the Border Security, Asylum and Immigration Act 2025.

The definition of "employer" is broadened to capture those engaging individual sub-contractors or operating online matching services, applying a substance-over-form test regardless of "self-employed" or "contractor" labels. Penalties of up to £60,000 per worker apply, but a statutory defence is available to those who can show they have met prescribed requirements: written contractual protections, substitution controls and identity verification processes, in place before work begins.

ERA – not to permit harassment of employees by third parties from 30 October

The ERA introduces an obligation on employers not to permit harassment of their employees by third parties. Third parties include agency workers, contractors and other external resource. See our microsite for more.

Immigration

Global Talent visa opens new pathways for designers, academics and researchers

The UK's unsponsored Global Talent visa has become more accessible to a wider group of high-achieving professionals. Since 1 July 2026, a new standalone design industry endorsement pathway has been available for product, graphic, UX/UI, digital and game designers, addressing a previous gap that forced many applicants through the harder-to-satisfy arts and culture route. Applications are assessed by the Design Business Association under "exceptional talent" or "exceptional promise" tiers.

Separately, changes effective since March 2026 have clarified eligibility for the fast-track appointments pathway for researchers and academics, confirming that eligible roles must require a PhD or equivalent and involve genuine research or innovation leadership, or research as a primary function.

Employers in creative industries and universities and research institutions should review whether their talent now falls within these clarified routes.

'Earned settlement' reforms set to extend qualifying period to 10 years for visa holders

The government's proposed "earned settlement" reforms would extend the default qualifying period for indefinite leave to remain (ILR) from five to 10 years for most visa holders, with a 15-year baseline for lower-skilled Skilled Worker and Health and Care visa routes. A reduction and addition framework would allow this period to be shortened by up to seven years for those meeting income, language and public service criteria, or lengthened for receipt of public funds or illegal entry.

The Home Office consultation has closed and further guidance is awaited. If introduced, changes are likely to apply retrospectively to those already on a path to settlement, a prospect the House of Lords has criticised as unfair and damaging to the UK's competitiveness for international talent. Employers may consider auditing visa-holding staff now to identify anyone nearing ILR eligibility under the current rules.

Visa fees reimbursement introduced for scale-ups in clean energy, life sciences, and technology

The government has launched the Visa Fees Reimbursement Scheme for Scale-Ups, allowing eligible businesses to reclaim up to £5,000 per international hire (including dependants), capped at £25,000 per business each year, for visa costs incurred on or after 9 June 2026. The scheme runs until 1 March 2027 unless extended, operates on a first-come, first-served basis from a limited fund, and is open to UK-based scale-ups in the clean energy, life sciences, or digital and technologies sectors meeting specific growth, sponsorship and due diligence criteria. As the total funds available have not been disclosed, eligible businesses should act promptly to take advantage of this time-limited scheme.