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EMPLOYMENT LAW IN NORTHERN IRELAND: WHAT’S CHANGED AND WHAT’S COMING NEXT IN 2026/2027?

25/09/2026

There is a raft of changes coming into force in Great Britain and, whilst Northern Ireland’s Employment Rights Bill seems to have stalled at Executive level and has not yet progressed to the Assembly, employers remain in the difficult position of not knowing whether the proposed reforms under that Bill will ultimately become law.

It would not be unusual for legislation of this nature to suddenly gather pace and be progressed before the end of the current Assembly mandate in May 2027. At this stage, we are not optimistic that this will occur in the immediate future, but as every employment lawyer knows, political priorities can change very quickly. Employers should therefore avoid assuming that these proposals have disappeared altogether.

However, regardless of what happens with the Employment Rights Bill, there have already been a number of significant developments over the last 12 months, together with several important changes on the horizon that employers should be planning for now.

Employment Rights Bill: A Recap

The ‘Good Jobs’ which in reality is the Employment Rights (NI) Bill Consultation Response, published in April 2025, confirmed that a number of significant employment law reforms remain Government policy. These proposals span four key themes: Terms of Employment, Pay and Benefits, Voice and Representation, and Work-Life Balance.

The Headline proposals include:

  • Restrictions on the use of Zero-Hour Contracts through a banded-hours model.
  • Prohibition on exclusivity clauses.
  • Restrictions on “fire and rehire” practices.
  • Changes to holiday pay calculations.
  • Code of Practice on the Right to Disconnect.
  • Trade union access rights, including digital access rights.
  • Reduction in trade union recognition thresholds.
  • Day One flexible working rights.
  • The introduction of Carers’ Leave and Neonatal Leave.
  • Enhanced redundancy protections linked to pregnancy and family leave.

The Department has indicated that the reforms are likely to be delivered through a combination of:

  1. Primary legislation (a new Employment Rights Bill);
  2. Secondary legislation; and
  3. Guidance and statutory Codes of Practice.

Importantly, the Department’s current approach suggests that the major structural reforms such as Flexible Working, Carers’ Leave, Trade Union Access Rights, Restrictions on Fire and Rehire, and Changes relating to Zero-Hour Contracts would require primary legislation and therefore remain dependent upon the progress of the Employment Rights Bill.

Labour Relations Agency Good Jobs Charter

Although much attention has focused on the Employment Rights Bill, employers should not overlook the development of the Northern Ireland Good Jobs Charter.

The Charter is being developed jointly by the Labour Relations Agency and the Department for the Economy and is intended to encourage employers to go beyond minimum legal compliance and focus on broader measures of job quality. It is built around seven themes including pay and benefits, work-life balance, wellbeing, social support and employee voice.

A Consultation closed on 28 August 2026 and options being considered include a best-practice guide, a non-statutory Code of Practice or a formal accreditation scheme. Whilst the Charter will not create legal rights, it has the potential to become an increasingly influential benchmark for good employment practice particularly if business are asked to demonstrate the requirements when tendering for public procurement contracts.

You can view the Federation’s response to the Consultation here

Domestic Abuse Safe Leave

One development that employers should watch carefully is the proposed implementation of Domestic Abuse Safe Leave.

The Domestic Abuse (Safe Leave) Act received Royal Assent in 2022 but has not yet commenced. Once introduced, it will provide employees with a day one entitlement to up to ten days’ paid safe leave each year to enable them to access support and take practical steps to protect themselves and their families. It is expected that employers will be required to pay the 10 days leave.

Although regulations are still awaited, the Minister has re-affirmed a commitment to introducing the entitlement before the end of the current Assembly mandate in May 2027.

In practical terms, employers should begin preparing now by:

  • Reviewing special leave policies.
  • Developing or updating domestic abuse policies.
  • Identifying trained points of contact.
  • Training managers on handling disclosures.
  • Establishing confidential reporting and support mechanisms.

The recently launched Women’s Aid Workplace Charter is also likely to become an important resource for employers seeking to demonstrate readiness in this area.

Gender Pay Gap Reporting and Pay Transparency

Gender Pay Gap reporting remains firmly on the policy agenda.

A Consultation considered proposals requiring employers with 250 or more employees to report on gender, disability and ethnicity pay gaps and publish action plans to address identified disparities.

There is also a wider debate about whether the EU Pay Transparency Directive will apply in Northern Ireland. Although Northern Ireland is no longer part of the European Union, organisations such as the Equality Commission for Northern Ireland believe that the Directive, or parts of it, may still apply because of the Article 2 commitment to ‘no diminution of rights’.

For larger employers in particular, this is an area that warrants close monitoring over the coming year.

Data Protection Complaints Procedures

One change already in effect and potentially overlooked by employers arises from the Data (Use and Access) Act 2025.

Since 19 June 2026, organisations have been required to have a formal process for handling data protection complaints. Complaints may involve subject access requests, retention practices, accuracy of data, sharing of personal information, monitoring activities and marketing communications.

Employers must ensure they can:

  • Receive complaints.
  • Acknowledge them within 30 days.
  • Investigate appropriately.
  • Keep complainants informed
  • Communicate outcomes without undue delay.

We have produced a Template Policy that is downloadable by members in our members area.

The Fair Work Agency

One of the most significant developments across the UK labour market has been the creation of the Fair Work Agency, which became operational in April 2026.

Whilst most of the Fair Work Agency will not extend to Northern Ireland its responsibility for enforcing National Minimum Wage, National Living Wage and Statutory Sick Pay compliance will apply here.

For employers, the key takeaway is straightforward: compliance audits are becoming increasingly important.

Organisations should be reviewing:

  • National Minimum Wage compliance.
  • Record keeping arrangements.
  • Contracts and policies.
  • Manager training and awareness.

The trend is clearly towards more active enforcement rather than relying solely on individual complaints.

Changes to Right to Work Checks

Finally, employers should prepare for significant changes to the Right to Work regime coming into effect from 1 October 2026 under the Border Security, Asylum and Immigration Act 2025.

The changes extend beyond traditional employer-employee relationships and introduce wider definitions of both “employer” and “worker”, with increased liability extending through labour supply chains.

Employers should review the updated guidance and draft Codes of Practice carefully. Equally important is ensuring that right to work checks are conducted consistently and without discrimination. The Home Office has made it clear that employers must not only conduct checks correctly but also conduct them fairly.

Civil penalties remain substantial, reaching £45,000 for a first breach and £60,000 for repeat breaches. We have separately produced an in-depth article explaining what it means that can be viewed here

Looking Ahead

The common theme running through all of these developments is increased scrutiny of workplace practices and growing expectations on employers.

Whether through legislation, enforcement bodies, voluntary charters or Codes of Practice, the direction of travel is clear and we will continue to keep you abreast of changes as they occur.