Employment law 5 in 5: April 2026

At a glance

• UK Employment Rights Act changes.
• EU employment developments.
• Working hours in China.
• Developments in the Americas.
• Upcoming employment events. 

UK Employment Rights Act changes

Ongoing activity under the Employment Rights Act 2025 signals a continued acceleration of reform for UK employers. Effective 6 April 2026, employers are subject to a duty to keep adequate holiday and holiday pay records for six years, with failure to do so constituting a criminal offence. A statutory right for independent trade unions to access workplaces, physically and digitally, is expected to come into force from October 2026. The government is also consulting on regulations that will significantly restrict the use of non‑disclosure agreements in cases of workplace harassment and discrimination, with NDAs expected to be void in most cases.

EU employment developments

Recent EU developments include publication of updated, non‑binding EU‑wide guidelines on gender‑neutral job evaluation and classification, with a practical toolkit and templates to support compliance with the Gender Pay Transparency Directive. The Omnibus I Amending Directive simplifies both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The CSRD has tighter headcount and turnover thresholds and revised timelines. The CSDDD scope is narrowed to very large companies and application delayed to July 2029, but labour and human‑rights due diligence expectations will continue to influence HR, procurement and compliance practices across EU value chains. In case you missed our webinar 'EU Forced Labour Regulation: What US Companies Need to Know,' you can watch the recording here.

Working hours in China

Employers in China should prepare for a shift in how labour authorities apply existing working‑time rules. While the law has not changed, approvals for flexible and comprehensive working hours arrangements are becoming harder to obtain. Common arrangements to manage overtime exposure may be subject to closer scrutiny, narrower eligibility criteria and less predictable renewal outcomes.

Developments in the Americas

In the US, the Department of Labor announced a Notice of Proposed Rulemaking addressing the determination of joint employer status under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act. The Proposed Rule has significant implications for any business that relies on third-party labor arrangements. At the state level, Virginia joined Washington in tightening non‑compete rules from July 2026.

In Latin America, the Supreme Court in Peru annulled restrictive outsourcing rules, reinstating the previous framework and allowing core business outsourcing to continue. Brazil introduced a requirement for employers to inform employees about access to diagnostic services and their entitlement to paid time off for preventive examinations and is advancing a bill to expand paternity leave.

Upcoming employment events

DLA Piper is running a series of International Employment Law Training workshops in May and June 2026. Find out more here. Also join us for our Nordic Employment Law Update webinar on 5 May 2026 covering key regional developments, including pay transparency, overtime and AI‑driven redundancies. Mark your calendars for our next Global Employment Quarterly webinar on 17 June 2026 and watch for an invite.