Employment law news in brief - March 2026

Here's our round-up of employment law news for March 2026.

The government has published its response to the House of Lords Home‑based Working Committee’s report about remote and hybrid working. 

The government emphasises that changes to the flexible working regime (due to come into force in 2027) have been designed to make it easier for employee's to obtain the flexiblity they need. 

In terms of health and safety, the government recognises that hybrid and remote working has some drawbacks. It has asked the Health and Safety Executive to promote its Home Worker Guidance through a multi‑channel communications campaign to increase awareness. 

Employers not doing enough to support neurodivergent staff

Many employers are failing to properly support neurodivergent staff, according to a new survey by Acas. Research carried out by YouGov found that 35% of employees believe their employer is ineffective at training managers to support neurodiversity at work, while only 32% say their organisation does this well. 

The 34 page report provides guidance to help organisations create neuroinclusive workplaces, explains how to support line-managers so that they can make better decisions, and explains what ‘good’ looks like when considering reasonable adjustments. 

FTSE Women Leaders Review highlights progress and persistent leadership gaps

The FTSE Women Leaders Review 2026 reports significant progress in women’s representation across UK boards and senior leadership, but says that the pace of change remains slow.

The review shows that: 

• Women now hold 43% of board positions across the FTSE 350 - a significant increase from just under 10% when the review began in 2011
• The vast majority of companies are meeting or nearing the voluntary 40% target
• Non‑executive director roles have reached near gender balance, reflecting sustained progress over the past five years; and
• Representation in wider leadership roles has also increased, with most FTSE 350 companies close to the 40% target for women in leadership teams.

However, the review finds that women remain under‑represented in key executive roles, such as chair and chief executive. 

Zero‑hours contracts reach record high

The number of people working on zero‑hours contracts has reached a record high, according to new analysis by the Work Foundation at Lancaster University.

The research shows that 1.23 million people are engaged on zero‑hours contracts as their main form of employment, an increase of 91,000 over the past year. The rise has been driven largely by young workers aged 16 to 24, who are more than five times as likely as older workers to be on this type of contract. Women are also more likely than men to have these types of contracts.  

The Work Foundation estimates that 77% of people on zero‑hours contracts are not in full‑time education, and around a third rely on these arrangements for full‑time work. 

MPs launch inquiry into impact of AI on business and the workforce

The House of Commons Business and Trade Committee has launched a new inquiry into artificial intelligence to assess its opportunities and costs for UK businesses and workers, and to inform future government priorities.

The inquiry will examine how AI is expected to develop over the next decade, how it is being adopted across the UK economy and the infrastructure needed to support safe and responsible use. It will also consider the impact of AI on work and workers, including which roles are most exposed to automation or augmentation, the effects on productivity, employment, pay, job quality, health and safety and wellbeing, and the use of AI in recruitment and HR processes.

Acas survey finds sick pay reforms will have biggest workplace impact

New research from Acas shows that changes to statutory sick pay under the Employment Rights Act 2025 are expected to have the greatest impact on workplaces, according to both employers and workers.

The survey, commissioned by Acas and carried out by YouGov, found that 43% of employers and 36% of workers said day‑one entitlement to sick pay would have the biggest effect on them at work. The reduction in the qualifying period for unfair dismissal protection from two years to six months ranked second, cited by 31% of employers and 30% of employees.

The findings also highlight different priorities beyond these core reforms. Employers identified new day‑one rights to paternity leave as the third most impactful change, with 28% selecting this option. Workers, by contrast, ranked measures to make flexible working easier in third place, also at 28%. 

Women set to benefit most from upcoming changes

Millions of low‑paid women are expected to benefit from stronger statutory sick pay and new employment rights coming into force from April, according to analysis published by the TUC. 

The TUC estimates that around 4.7 million women will gain from the reforms, including more than 830,000 who will qualify for statutory sick pay for the first time following the removal of the lower earnings limit. Around 3.9 million women will also receive sick pay from the first day of illness, rather than having to wait four days.

Government launches £1bn youth employment drive

The government has announced a major youth employment initiative backed by £1 billion, aimed at unlocking more than 200,000 jobs and apprenticeships for young people across the UK.

The programme forms part of a new “New Deal” for young people and seeks to reverse the recent rise in the number of 16‑ to 24‑year‑olds who are not in education, employment or training. Measures include a new Youth Jobs Grant, under which employers will receive £3,000 for each 18‑ to 24‑year‑old they recruit who has been claiming Universal Credit and looking for work for six months. 

The scheme is expected to support around 60,000 young people over three years.

The government will also expand the Jobs Guarantee to cover 18‑ to 24‑year‑olds, creating more than 35,000 additional subsidised roles, and introduce new foundation apprenticeships in sectors such as hospitality and retail. Small and medium‑sized employers will be eligible for a £2,000 incentive for each new apprentice aged 16‑24 they take on. 

Tribunal claims rise 12% as pressure on system intensifies

The number of open employment tribunal claims has increased by 12%, adding to growing pressure on the tribunal system, according to recent figures.

The latest data shows that receipts continue to outpace disposals, driving a rising backlog of cases and extending waiting times, with some hearings now being listed in 2027 and 2028. 

Unfair dismissal remains the most common type of claim, alongside discrimination and wages‑related cases.

Research suggests ‘paternity allowance’ could deliver £3bn boost to UK

Introducing a new six‑week “paternity allowance” for self‑employed and gig‑economy fathers could generate net benefits of almost £3 billion a year for the UK, according to new research. 

The proposal, published by the Institute for Policy Research at the University of Bath, would extend paid paternity leave to fathers who currently miss out because they are not employees. The allowance would mirror statutory paternity pay, set at £187.18 per week, and would apply to self‑employed workers and those with “worker” status.

The analysis estimates that around 22% of new fathers currently receive no financial support when taking time off after the birth or adoption of a child. Researchers suggest that extending paid leave could improve parental wellbeing, support mothers’ participation in the labour market and reduce family breakdown. Under the central take‑up scenario, more than 54,000 fathers a year would claim the allowance, delivering a net societal benefit of around £2.97 billion, despite relatively modest costs to government and employers.

Our newsletters

We publish monthly employment and education newsletters. If you'd like to be added to the mailing list, please let me know.