Consultation on equal pay reform and race and disability pay reform
The UK Government has launched a consultation to reform the existing equal pay regime and its expansion to include race and disability pay discrimination. The consultation acknowledges the problems with the current equal pay regime including cost, complexity, protracted timescales and a failure to protect those who need it, such as disabled employees, those from ethnic minorities and outsourced workers. The UK Government aims to modernise the pay discrimination framework in two phases. Phase one intends to improve the current system by streamlining procedures and strengthening transparency and enforcement. Phase two will be implemented "once the government is satisfied the system is improved" and will extend it to close gaps in the law. The equal pay regime has been in need of reform for some time. The reform needed, along with the improvement in the system the UK Government is looking for, may take some time. As such, extension of pay protection on the grounds of race and disability may still be some time away.
27% increase in Acas Early Conciliation notifications
Following hot on the heels of the annual employment tribunal statistics showing a 39% year-on-year increase in single claims, Acas has published its Annual Report and Accounts 2025 to 2026. Acas has received a 27% year-on-year increase in Early Conciliation ("EC") notifications. It should be noted that Acas will receive considerably more EC notifications than the Employment Tribunal receives claims. Although this is a significant increase in EC notifications, Acas also reported record-high settlement rates of 80% for individuals and 93% for collective conciliation. Implementation of various elements of the Employment Rights Act 2025 is expected to further increase the number of EC notifications and subsequent Employment Tribunal claims being made over the coming years.
Extended Right to Work scheme
The UK Government's Consultation response: extending the right to work scheme to other working arrangements has been published along with a draft updated Code of Practice on preventing illegal working. The UK Government response is that clear, consistent rules are needed across the labour market. The Right to Work scheme will be extended beyond traditional employees with effect from 1 October 2026. The reforms are aimed in particular at gig work, zero-hours work, subcontracting and platform-mediated services. This includes workers, individual sub-contractors and service providers matched with customers via online matching services. Genuinely self-employed individuals operating an independent business are intended to remain out of scope. The liability for employers enabling illegal working is high, with civil penalties of up to £45,000 per illegal worker for a first breach, rising to £60,000 per illegal worker for subsequent breaches. For more information on the changes and how businesses should prepare, see Significant changes to right to work check rules.
Consultation on workplace monitoring technologies
The UK Government has published a Workplace Monitoring Technologies Consultation. The consultation seeks to understand how workplace monitoring technologies ("WMT") are currently used in the workplace, and both their potential benefits and harms. It also seeks views on the UK Government's pre-consultation view of what constitutes good practice when introducing and using WMT, including the extent to which the principles are already being used and their impact on worker trust and productivity. Three potential options are put forward for intervention in this area:
• statutory code of practice plus guidance
• a legislative duty to consult with trade unions or elected representatives
• non-statutory guidance
Views are sought on these options and on the benefits, costs, risks and/or practical challenges they may bring. The results will inform which, if any, of these options are justified. The consultation runs until 30 September 2026.
