Key Information for Employers (20 January 2026)

On 20 January 2026, the Department for the Economy published its Miscarriage Leave and Pay Consultation Departmental Response Document  following the 8 week Consultation that closed on 19 December 2025. The purpose of the Consultation was to consider how to extend the Statutory Parental Bereavement Leave and Pay provisions to include miscarriage and to make the right to pay a Day 1 Right (subject to meeting the lower earnings threshold, currently £125 per week).

Members may recall that the Parental Bereavement (Leave & Pay) Act (Northern Ireland) 2022 introduced the right for parents who suffer a stillbirth after 24 weeks or the death of a child under 18 to:

• 10 days of parental bereavement leave (a Day 1 right), and
• the statutory rate of pay, subject to a 26‑week qualifying period.

These rights did not extend to miscarriage (pregnancy loss before 24 weeks), and statutory pay required 26 weeks of continuous employment. However, the Department of the Economy committed to reviewing this with a view to extending the rights to miscarriage and make the right to pay a Day 1 right to pay.

The Consultation Document notes that Northern Ireland will be the first region across the UK and Ireland – and one of the first in the western hemisphere – to legislate for statutory miscarriage leave and pay.

New Rights from 6 April 2026

1. Two Weeks of Statutory Bereavement Leave

• Available to the woman who experiences the miscarriage on or after 6 April 2026 and to eligible partners.
• Can be taken as two separate one‑week blocks or one continuous two‑week block.
• Must be taken within 56 weeks of the date of miscarriage or the date the woman became aware of it.

2. Statutory Bereavement Pay

• The statutory rate of pay will be £194.32 from 6 April 2026.
• Employees must meet the existing lower earnings threshold (currently £125 per week).
• Statutory pay will become a Day 1 right.
• The current 26‑week qualifying period for pay following stillbirth and child‑death cases will also be removed.

Therefore, from 6 April 2026, both the right to parental bereavement leave and pay, including miscarriage, will apply from Day 1.

3. Notice Requirements

• Only a self‑declaration will be required.
• No medical evidence will be requested.

The consultation noted that miscarriage can often be spontaneous and may not involve medical intervention, particularly in early pregnancy. Requiring evidence at such a distressing time would be insensitive and place unnecessary burdens on families and the health service.

4. Definition of Miscarriage

• ‘Miscarriage’ will include spontaneous miscarriages and pregnancy loss following specified medical interventions.
• Eligibility will extend only to those directly linked to the pregnancy.

Action for Employers

1. Review internal policies and HR systems to ensure they are updated ahead of the new rights coming into force on 6 April 2026.
2. Raise awareness among managers so they can handle situations sensitively, particularly around notice and evidence requirements. This may be especially important where a miscarriage occurs before colleagues or managers were aware of the pregnancy.

We will review our template Policy and provide an updated one shortly.

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Strengthening the trade union voice and representation has been a key objective of the Department for the Economy.

At an employer focussed event the Minister for the Economy, her Special Adviser, and Department officials heard directly from businesses about their concerns. The Minister outlined proposals in the forthcoming Good Jobs Bill relating to trade unions which include:

Key Trade Union Proposals in the Good Jobs Bill

1. Increased Trade Union Rights to Access Workplaces

• Unions will be able to request access to both unionised and non‑unionised workplaces.
• Purpose: to encourage more workers to become members and make recruitment easier.

2. New LRA Code of Practice covering trade union access rights

• Code will be underpinned by good faith and reasonableness.
• Access rights cannot be used to disrupt or protest.

3. Phased Implementation of Access Trade Union Access Rights

• Starting with larger businesses, moving towards smaller ones.
• Department will monitor implementation.

4. Lower Threshold for Statutory Trade Union Recognition

• Reduced from 21 employees to 10.
• Department modelling suggests this will only double the number of cases referred to the Industrial Court to compel recognition (around six per year).

5. New Code of Practice on Facilitating Workplace Relationships

• Supporting respectful engagement between employers and unions, with accompanying guidance.

6. Information & Consultation (ICE Regulations)

• Redefining “undertaking” to include smaller establishments and satellite offices.
• Reducing threshold for requests from 10% to 2% of employees.
• Lowering minimum number of employees required from 15 to 10.

Much of this approach is based on the New Zealand model, where similar rights were introduced 20 years ago. Interestingly, New Zealand is now repealing some of those laws.

The Minister’s Special Adviser Dr Lisa Wilson referred to her recent paper Trade Union Voice as a Lever For Good Jobs – Evidence, Policy, and Practice in Northern Ireland as evidence that collective voice through unions improves job quality, workplace relations, absenteeism rates, and business outcomes. This evidence was robustly challenged by the business community citing absenteeism rates in the heavily unionised public sector as compared to those in the private sector.

What Happens Next in Northern Ireland?

The Good Jobs Bill is currently with the Office for Legislative Counsel for drafting and will be presented to the Assembly early in the new year. Proposals on union voice and representation will face close scrutiny from businesses and the Committee for the Economy.

While the session was tough, the Department acknowledged the importance of listening to employer concerns and committed to ongoing consultation.

Developments in GB: Consultation on Modernising Union Balloting

On 19 November 2025, the GB Government published its consultation document Make Work Pay: Draft Code of Practice on Electronic and Workplace Balloting for Statutory Union Ballots.

The consultation runs until 11:59pm on 28 January 2026.

Currently, almost all statutory ballots must be conducted by post. The new Code proposes modernised voting methods to make participation easier, ensure transparency, and reflect the voices of working people.

What Employers Need to Know

The draft Code sets out:

• Legal requirements for each party involved in a ballot.
• Factors to consider when choosing a voting method.
• Good practice guidance for electronic and workplace ballots.

Proposed Balloting Methods

1. Pure electronic balloting – fully digital distribution, casting, and return of votes.
2. Hybrid electronic balloting – voting materials sent by post, with votes returned either by post or electronically.
3. Workplace balloting – in‑person voting at the workplace or agreed off‑site locations.

All ballots will continue to be overseen by an independent scrutineer. The Secretary of State must be satisfied that ballots meet required standards:

• All entitled members can vote.
• Votes remain secret.
• Risks of unfairness or malpractice are minimised.

Implementation Timeline

• Phase 1 (2026): Electronic and workplace balloting introduced for specific union ballots, overseen by a new Senior Oversight Board.
• Phase 2 (end of 2026): Expansion of pure electronic balloting to recognition and derecognition ballots.
• Phase 3 (2027 onwards): Ongoing review and enhancement of the regime.

Northern Ireland Context

This Code will only apply in England, Wales, and Scotland only. In Northern Ireland, employment law is devolved. However, the learnings from this Consultation may well shape the direction In Northern Ireland as the Department for the Economy will also adopt separate legislation to permit electronic balloting systems here.

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On 26 November 2025, the Government has published the Minimum wage rates for 2026 of increases to the National Minimum Wage, including the National Living Wage. These will be effective from 6 April 2026. The Government accepted in full the recommendations of the independent Low Pay Commission (LPC).

This marks yet another significant cost increase for employers, already struggling with rising wage bills. Earlier this year, employer NICs rose from 13.8% to 15%, and this has now been coupled with a sharp reduction in the earnings threshold at which NICs become payable — lowered from £9,100 per year to £5,000, a level fixed until April 2028.

On 27 November 2025 the Government confirmed a major change to its reform of employment rights. The plan to introduce a Day 1 right to claim unfair dismissal has been abandoned. Instead, the qualifying period in GB will be reduced from 2 years to 6 months – much to the relief of employers. See An update on the Employment Rights Bill.

This amendment is a significant shift in approach following debate of the Employment Rights Bill in the House of Lords.

Employers will welcome the clarity and change in approach. A new 6 month qualifying period removes the risk of potentially facing immediate unfair dismissal claims from new starters. This change also means employers can continue to manage probationary periods and short‑term contracts. However it is still a significant shift from the current 2 year qualifying period in GB. In Northern Ireland there are no current proposals to reduce the qualifying period from 1 year.

In its Press Release the Government also states ‘To further strengthen these protections, the Government has committed to ensure that the unfair dismissal qualifying period can only be varied by primary legislation and that the compensation cap will be lifted.’ Whether this means that the current cap on unfair dismissal compensation will be lifted remains to be clarified.

Employers will know that employees in both GB and NI will continue to have Day 1 protections against discrimination and discriminatory dismissals and those based on automatically unfair grounds for example for Whistleblowing.

It is possible now in GB that the reduced qualifying period for unfair dismissal rights could be introduced earlier than 2027.

It also keeps the Government’s timetable to introduce other changes to SSP in April 2026 in place.

New Statutory Rates from April 2026

• SMP, Maternity Allowance, SPP, Neonatal Care Pay, Shared Parental Pay, Parental Bereavement Pay, and Adoption Pay will rise to £194.32 per week;
• SSP will increase to £123.25 per week, alongside reforms making SSP a Day a right and removing the lower earnings threshold (changes applying in both GB and NI).

On 26 November 2025, the UK Government issued a Policy paper Working paper on options for reform of non-compete clauses in employment contracts inviting views on options to reform non‑compete clauses in employment contracts. These proposals are part of the wider mission to promote good jobs, boost productivity, and support a dynamic labour market.

Importantly, these proposals apply only in Great Britain (GB). There are no current plans under the Northern Ireland (NI) mandate to introduce similar reforms here. That said, NI often looks across at developments in GB, so future alignment could occur.

Case for Reform

The Paper states that non‑compete clauses restrict employees from joining competitors or starting their own businesses for a period of time after leaving a job. Their purposes is to allow business to protect legitimate business interests. However, evidence shows they can:

• Limit worker mobility
• Reduce knowledge sharing and innovation
• Deter start‑ups and growing businesses from accessing talent
• Create uncertainty for employees, even when clauses are unlikely to be enforceable

Surveys and research indicate that non‑compete clauses are common not only among high earners but also in lower‑paid roles.

Options under Consultation

There are four main policy options being considered:

1. Statutory limit on length:

• • A maximum duration (previously suggested at 3 months).
  • Possible variation by company size (e.g., 3 months for large firms, 6 months for smaller firms).

2. Complete ban

• • Non‑compete clauses would be unenforceable in all employment contracts.

3. Ban below a salary threshold:

• • Clauses unenforceable for workers earning below a set salary level.

4. Combination of statutory limit and salary threshold approach:

• • Ban below a salary threshold, plus a statutory limit (e.g., 3 months) for those above it.

Enforcement

The government is consulting on reforms to non‑compete clauses in GB, with options including a statutory time limit, a complete ban, a ban below a salary threshold, or a combination of these approaches. Currently, restrictive covenants are enforced through the courts, where the losing party pays the winner’s costs, which often deters employees from challenging clauses even when they are unlikely to be enforceable. This means workers may comply with overly broad terms out of fear of litigation. The government is therefore also seeking views on whether high legal costs are a barrier to contesting non‑competes and what changes might help rebalance the system.

Consultation

The consultation is open until 18 February 2026, and we will continue to keep members updated on any developments.

This is the first of what we expect will be 26 consultations affecting employment rights in Great Britain. Meanwhile, in Northern Ireland, we understand that the Department for the Economy is finalising drafts of the Employment Rights Bill, which is expected to be published in January. It is also noteworthy that the Minister for the Economy is scheduled to attend the Economy Committee on 7 January 2026, which is perhaps the date on which she will introduce the Bill to them.