Tue 02 Jun 2026

Employment Law – Beyond the headlines – June 2026

Away from the main stories, we highlight our selection of the employment law related news, developments and trends that caught our attention over the past month.

UK government launches pilot schemes intended to overhaul the fit note system

The UK government has announced a "radical overhaul" of the fit note system to be piloted in England. Currently 11 million fit notes are issued each year with more than 90% declaring the person "not fit for work". The pilots, which will cover 100,000 appointments in four different areas, aim to replace the existing system with personalised "stay in work" and "return to work" plans for workers who fall ill. Workers will be supported by a service staffed by clinical and non-clinical practitioners. A range of work and health support, including three-way conversations between patients, employers, and trained professionals, will be provided. The pilot findings will inform legislation to reform the "broken system".

The results of a call for evidence on fit note reform undertaken by the Conservative government in 2024 have also been published. Key findings of Fit Note Reform: Call for Evidence – Results included that the majority of patients felt the fit note system was effective, while employers were more likely to feel it was ineffective. Among healthcare professionals there were mixed views about its effectiveness. The report concluded that the current system is not functioning as effectively as it could and notes that the UK government is exploring ways to improve the system.

Gender pay gap reporting guidance updated following For Women Scotland judgment

The UK government employer guidance on gender pay gap reporting has been updated in light of the Supreme Court judgment in For Women Scotland v Scottish Ministers. Some references to "gender" have been replaced by references to "sex" in the "Making your calculations" and "Preparing your data" chapters. In the latter, information about what to do if an employee has a Gender Recognition Certificate ("GRC") is included. This includes an explanation that for the purposes of gender pay gap reporting, it is the employee's biological sex and not the acquired gender recorded on the GRC, that should be used. It also suggests how employers can ensure confidentiality by limiting access to the information.

Call for evidence on flexible working and disability

The influential Women and Equalities Committee is launching an enquiry considering why the greater acceptance of flexible working following the COVID-19 pandemic has not yet had a substantial impact on the employment rate of disabled people. The latest statistics (Q2 2025) show the employment rate for working age disabled people was 52.8% compared to 82.5% for non-disabled people. A call for evidence has been launched with questions looking at disabled people's experience of flexible working, its impact on career progression, the extent to which new rights under the Employment Rights Act 2025 will benefit disabled workers and how well employers understand their Equality Act duties to provide flexible working as a reasonable adjustment. Further details can be found in the call for evidence which closes on 26 June 2026.

Updated draft Code of Practice for Services laid before Parliament

The Equality and Human Rights Commission ("EHRC") Draft Code of Practice for services, public functions and associations was laid before Parliament on 21 May 2026. The Code has been updated following the For Women Scotland judgment that references to "man", "woman" and "sex" in the Equality Act 2010 refer to biological sex only. Parliament has 40 days to consider the draft Code, and if it is not rejected during that period, the EHRC may issue it. However, a commencement order is required to bring it into force. Employers may find some of the guidance useful but should bear in mind that it is for service providers. There is a separate EHRC Employment Code - while there is not a definitive timeline for it being updated, the EHRC has said it will be done "in due course". For more on this topic see Single-sex spaces in the workplace.

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