Employment law continues to evolve across pay, flexible working, retirement, AI and family leave.

In a recent webinar titled: HR & Employment Law Update - June 2026, Yvonne Clarke gave insight into the key developments employers should have on their radar in 2026.

Employment law is changing on several fronts at once. While many of the changes build on legislation introduced over the past few years, employers should not assume existing policies remain fit for purpose.

From pay transparency and retirement ages to AI in the workplace and employment permits, 2026 brings a number of practical issues that require attention. Reviewing policies now can help reduce compliance risks and avoid problems later.

1. Minimum wage and statutory sick pay remain key employer obligations

The increase in the National Minimum Wage took effect earlier this year, with revised age-related rates continuing to apply. Employers should also be aware that the planned introduction of the Living Wage has been delayed until 2029.

Statutory Sick Leave remains at five days.

Alongside these statutory changes, employers continue to face rising employment costs through wider legislative reforms. Rather than viewing each change in isolation, it is worth reviewing payroll, contracts and employee policies together to ensure they remain consistent.

2. Absence management deserves renewed attention

One of the most notable trends discussed during the session was the continued increase in employee absence.

Higher levels of stress-related absence are presenting challenges across many organisations. Employers are also reporting growing numbers of long-term absences linked to mental health.

Managing these cases requires more than simply processing medical certificates.

Practical steps include:

• Conduct meaningful return-to-work meetings.
• Keep appropriate contact with employees during longer absences.
• Consider occupational health referrals where appropriate.
• Make Employee Assistance Programmes available where possible.
• Assess whether any reported stress may be work-related.

Return-to-work conversations are particularly valuable. They help employers understand whether workplace factors may be contributing to absence while demonstrating ongoing support for employees.

3. Gender pay gap reporting continues to evolve

Employers within scope of the legislation should already be preparing for this year's reporting cycle.

As highlighted during the webinar, organisations should:

• choose their reporting snapshot date;
• verify payroll and bonus information;
• prepare narrative explanations for any reported gaps; and
• ensure reports remain publicly accessible in accordance with the legislation.

The reporting process is intended to promote transparency rather than simply produce statistics. Explaining any pay gaps and outlining planned actions forms an important part of the exercise.

4. Flexible working requests require careful handling

The right to request remote working has now been in place for some time.

While employers have previously succeeded in many Workplace Relations Commission cases, recent decisions suggest increasing scrutiny of how requests are handled.

This makes following internal procedures and the relevant Code of Practice particularly important.

Employers should ensure decisions are:

• based on objective business reasons;
• properly documented; and
• applied consistently across the organisation.

5. Employment permit compliance remains critical

Employers recruiting overseas workers should pay close attention to employment permit requirements.

The webinar highlighted recent increases to minimum salary thresholds for several permit categories together with the importance of monitoring expiry dates.

Practical steps include:

• maintaining accurate permit records;
• setting reminders well before renewal dates;
• ensuring employees only work within the terms of their permissions; and
• keeping contracts and working time records up to date.

Failure to maintain valid employment permissions can have significant legal consequences for employers.

6. New legislation continues to strengthen employee protections

Several legislative developments are either recently introduced or progressing through the legislative process.

These include:

• proposed changes where employers cease trading without entering formal insolvency procedures;
• an updated Code of Practice on part-time working;
• additional maternity protections where serious illness affects an employee during maternity leave;
• the proposed Pregnancy Loss Bill; and
• continuing implementation of the EU Pay Transparency Directive.

Although not every measure is fully operational yet, employers should begin reviewing policies now rather than waiting for implementation deadlines.

7. Pay transparency is already changing recruitment

Some elements of the EU Pay Transparency Directive are already influencing recruitment practices.

Employers should prepare for greater openness around pay by reviewing recruitment processes and salary structures.

Early preparation should include:

• reviewing salary bands;
• documenting pay structures;
• considering how pay decisions are made; and
• ensuring recruitment practices remain consistent.

Preparing now will make future compliance significantly easier.

8. AI should support decision-making, not replace it

Artificial intelligence is increasingly being used across HR processes.

While AI can assist with drafting documents and organising information, employers should treat any generated content carefully.

Legal references, employment advice and case law should always be verified independently.

Confidential employee information should not be entered into public AI systems, and organisations should develop clear internal guidance on appropriate AI use.

9. Retirement policies should be reviewed

The Employment (Restriction of Certain Mandatory Retirement Ages) Act introduces new considerations for employers operating contractual retirement ages.

Rather than waiting until an employee approaches retirement, organisations should begin succession planning discussions well in advance.

Reviewing retirement clauses, updating policies and training managers can help employers prepare for requests from employees who wish to continue working beyond traditional retirement ages.

Practical actions for employers

The pace of employment law change means annual policy reviews are no longer enough.

Employers should consider:

• reviewing HR policies against recent legislative changes;
• checking employment permit records and renewal processes;
• preparing for future pay transparency requirements;
• ensuring managers understand flexible working obligations;
• reviewing retirement procedures;
• strengthening absence management practices; and
• developing clear internal guidance on AI use.

Small compliance issues can become significant risks if left unaddressed. Taking a proactive approach now can help employers remain compliant while creating clearer, more consistent employment practices.

The contents of this article are meant as a guide only and are not a substitute for professional advice. The authors accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article.