UK employment law in 2026 is expected to be defined by major legislative reform, increased workplace conflict and economic pressures, leading to a significant shift in employment disputes.
Disputes on the rise
Conflict at work is at a historic high.
Research by Acas found that 44% of working-age adults experienced conflict in the workplace in the past year.
With the Employment Rights Act 2025 predicted to increase claims by 15%, this trend is likely to continue. For employers, this risks greater litigation and higher costs, making robust policies and early intervention essential.
Employment Tribunal backlog
Increased disputes are putting the Employment Tribunal system under severe strain.
As of September 2025, there were 52,000 single open Employment Tribunal claims, an increase of 33% compared to the same period the previous year.
Cases routinely take over a year to reach hearing, with short-notice postponements increasingly common. Tribunal delays prolong uncertainty, increase financial and emotional strain, and erode confidence in access to justice. Delays also complicate case management and settlement strategies.
Employers should maintain thorough records and consider alternative dispute resolution to minimise risk and costs during prolonged delays.
The Employment Rights Act 2025
The Employment Rights Act 2025 – the most significant overhaul of UK employment law in decades – recently became law, and its impact will start to be felt in 2026.
Several reforms scheduled...
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