The UK’s employment landscape is set for a notable recalibration in 2026, with a cluster of reforms that raise employers’ compliance obligations and increase the legal and financial risks of getting workplace processes wrong. Businesses that begin updating policies and training now will be better placed to manage the year ahead. According to analysis by RSM UK and recent practice briefs from legal advisers, the cumulative effect of these measures will be to shift the balance of responsibility more squarely onto employers.

Stronger duties to prevent sexual harassment

A central change will be the uplift in the preventive duty to tackle sexual harassment. Employers will no longer be judged on whether they took “reasonable steps” but on whether they took “all reasonable steps” to stop such conduct, a higher threshold that requires more active and demonstrable intervention. Industry commentary warns that boards and HR teams should expect closer scrutiny of training, supervision and the practical steps taken to prevent harassment.

Renewed liability for third-party harassment

Liability for harassment by third parties is also returning as a statutory risk. Employers may be held to account for abusive or harassing behaviour by clients, customers or contractors where that conduct occurs in the course of employment and the employer cannot show they took all reasonable steps to prevent it. Employment specialists advise reviewing risk assessments and contractual arrangements with third parties to evidence proactive prevention measures.

Expanded whistleblowing protections and limits on NDAs

Separately, whistleblowing protections are widening. Disclosures about sexual harassment will be explicitly treated as protected, bringing such complaints within the stronger anti-retaliation regime and exposing employers to increased liability if they respond improperly. At the same time, government proposals point to tighter limits on confidentiality clauses in settlements and NDAs where they seek to silence victims of harassment. Legal commentary suggests such clauses will increasingly be regarded as unenforceable, prompting employers to reassess whistleblowing channels, confidentiality practices and settlement approaches.

Higher stakes in redundancy and restructuring

Employers will also need to revisit redundancy and restructuring playbooks. Legal advisers highlight that enhanced consultation obligations and higher potential awards for failures in collective consultation make early planning essential. Practical steps such as timely headcount reviews, clear identification of affected employee pools and thorough record-keeping can significantly reduce the risk of costly protective awards and prolonged disputes.

Increased pressure on dispute resolution

Pressure on dispute resolution routes is likely to intensify. Commentators note that tribunal backlogs, combined with changes to limitation periods and procedural rules, may extend the timeframe during which employers must manage active claims and preserve evidence. As a result, firms are being advised to strengthen document retention, consider alternative dispute resolution at an earlier stage and ensure internal investigations are rigorously documented.

Changes to statutory entitlements and unfair dismissal risk

Changes to statutory entitlements will also affect workforce planning. From April 2026, some family leave and sickness entitlements will apply from day one of employment, and statutory sick pay will be payable from the first day of incapacity, with the lower earnings threshold removed. In addition, the qualifying period for ordinary unfair dismissal is expected to be shortened to six months, increasing the number of employees able to bring claims. Employers should therefore reinforce probation processes, update contracts and assess the operational and cost implications.

Prevention, process and proof

Taken together, the reforms place a premium on prevention, clear process and evidencing action. Legal advisers and HR specialists recommend immediate policy reviews, refreshed manager training, clearer reporting channels and tighter governance around third-party interactions and settlement terms. Organisations that treat these reforms as a compliance exercise rather than an opportunity to embed safer workplace practices may still face heightened legal and reputational risk.

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