What follows is our guide to the key themes and expected developments across 2026 and beyond. 

What is happening with the ‘Good Jobs’ Employment Rights Bill?

Following consultation on a proposed overhaul to NI employment law last year, the Department for the Economy published its response in its “Way Forward,” document, which puts a draft Good Jobs Employment Rights Bill on track for publication in 2026, with enactment targeted before the end of the current Assembly mandate in 2027.

Assuming the draft bill is passed, not everything will arrive at once, with some changes implemented by secondary legislation and/or Codes of Practice earlier than the larger structural reforms. The Department has flagged that changes to payslips, and new Trade Union recognition rights are earmarked within this package for secondary legislation, while the headline reforms to zero-hours arrangements, for example, will likely require further design and lead-in time. 

See our ‘Good Jobs’ Hub and 'Good Jobs' dashboard for a full breakdown of the DfE’s proposals.

Key areas to watch

Zero-hours contract reform remains a key focus area. The Department has confirmed a hybrid approach, with the option to move to banded-hours contracts for those consistently working low/zero hours (likely after a 26 week qualifying period), a right to reasonable notice of shifts and compensation for short notice cancellations, a ban on exclusivity clauses below the lower earnings limit, and the ability to extend banding beyond zero‑hours in future. However, a lot remains undefined so we can expect further engagement on definitions, refusal grounds and compensation mechanisms before commencement. 

A key area which needs clarification in NI is holiday pay and the Department intends to shift to a 52 week holiday pay reference period to align with GB and the Supreme Court’s approach in the landmark Agnew case. Employers should note, however, that there is no plan to introduce a two‑year backstop for historic holiday pay claims in NI, maintaining materially higher exposure for NI employers compared to those in GB at present. 

We can also anticipate enhanced trade union access, including digital access, and a lower headcount threshold for recognition claims from 21 to 10 employees. This combination may drive more activity on statutory recognition, including in smaller workplaces, with knock on implications for information and consultation arrangements. 

A package of expanded ‘family friendly’ rights are also proposed through flexible working becoming a day one right with simpler processes, introduction of a week of unpaid carer’s leave, creating neonatal leave and pay, extending redundancy protection for pregnant employees and family leave returners, and making paternity leave more flexible and accessible. These measures will largely mirror the pre-Employment Rights Act 2025 position in Great Britain which proposes further enhancements under that legislation.

It remains to be seen whether attempts are made to include other changes that are being introduced in GB as the Bill passes through the Assembly. See here for a full breakdown of changes introduced under the Employment Rights Act in GB. 

What else is expected this year?

Domestic abuse ‘safe leave’

Following a 2024 consultation, regulations are awaited to implement Northern Ireland's statutory right to 10 days' paid ‘safe leave’ for employees affected by domestic abuse, see further here. This will be a day one right for employees dealing with related legal, medical, or housing issues, with the cost to be met by employers. Secondary legislation to enact this is finally expected in 2026, and employers should consider developing policies to ensure safe and sensitive implementation. Northern Ireland will be the first jurisdiction in the UK and Ireland to enact such leave, so the rate of employee uptake is uncertain. 

Parental bereavement leave

The current parental bereavement regime will be extended to cover loss of a child through miscarriage and will become a day one paid entitlement. This change was announced by the DfE in 2022 but is yet to take effect, and must apply no later than 6 April 2026.

While many employers already offer this type of leave, it is still sensible to review bereavement and compassionate leave policies to ensure alignment with the expanded scope and eligibility. Employers with employees in both NI and GB should note that although ‘miscarriage leave’ will be enacted in GB under its Employment Rights Act 2025, it will be unpaid, unlike in NI, therefore employees in NI are much more likely to exercise this right.

Gender pay gap reporting 

Following consultation earlier in 2025, Northern Ireland is moving closer to implementing long delayed gender pay gap reporting. The regime is expected to mirror that in GB on methodology and frequency but will also require mandatory action plans alongside the figures - a requirement not currently present in GB (although will be introduced in due course under new legislation). The Equality Commission for Northern Ireland (ECNI) will act as the regulator, with sanctions still under consideration. 

The regime will not initially include mandatory disability or ethnicity pay gap reporting, despite Northern Ireland being the first jurisdiction to plan for it. Great Britain, however, remains committed to implementing such reporting in the near future.

On current projections, regulations are likely to follow royal assent of the Good Jobs Bill, with first reports most plausibly arising on a 2027 snapshot for publication in 2028. One key to successful reporting is ensuring that IT and HR systems are configured to provide required data relating to employee gender, pay and bonuses. Employers may want to test their systems ahead of time to ensure they are ready when this obligation is introduced. 

We wrote about this further here.

Developments in GB, EU and beyond- where will NI stand?

The Dillon case and Article 2 of the Windsor Framework

Article 2 of the Windsor Framework makes a commitment that, following Brexit, there will be no diminution of rights in NI as protected by the Good Friday/Belfast Agreement including in the area of protection against discrimination. The recent UK Supreme Court case of Dillon and Ors v Secretary of State for Northern Ireland has provided the first substantive opportunity to test the scope and application of Article 2. 

The case centres around whether certain provisions of the controversial Legacy Act violate the European Convention on Human Rights, but it raises much broader constitutional questions about how new or evolving EU rights may interact with NI law post Brexit. The Supreme Court hearing took place in November 2025 with judgment expected in early 2026 and will likely have significant impact on how the Pay Transparency Directive and For Women Scotland judgment apply in NI (more on this below).  

EU Pay Transparency Directive: will NI need to comply?

The EU Pay Transparency Directive (PTD) mandates gender pay gap reporting for companies with 100 or more employees and grants new individual rights to pay transparency across Member States. These measures are more extensive than the current regime in Great Britain which, following Brexit, does not have to comply. There are no current plans to introduce this in GB.

The position in Northern Ireland is not so straightforward and there is an outstanding question as to whether these more stringent PTD obligations will apply to NI via Article 2 of the Windsor Framework. Both the Equality Commission for NI and the NI Human Rights Commission argue that the framework's dynamic alignment principle requires the implementation of most PTD obligations in NI. If the PTD is found to be within scope, NI could see lower reporting thresholds, stronger individual transparency rights, and more prescriptive equal pay diagnostics. There is also a timeframe for implementing these regimes which NI is obviously not keeping pace with.

Applying the PTD would bring NI closer to ROI/EU practices and create significant divergence from GB, posing logistical challenges for employers operating in both regions. The current delay in NI's mandatory pay gap reporting regime is likely due to these unresolved questions, and the outcome of the Dillon case is expected to provide greater clarity.

EU AI Act: will this apply to NI?

The EU AI Act (effective since August 2024 with a phased two year roll out) sets a risk-based regime, banning certain ‘unacceptable’ uses of AI from February 2025 and imposing strict controls on high risk systems, including those used in recruitment and workplace management. It does not apply directly in GB or NI (only to EU member states), but on 24 March 2025 the European Commission proposed adding it to the Windsor Framework so it would apply in Northern Ireland. Doing this involves a complex process requiring sign off from the Joint Committee between the EU and UK, and no decision has been made yet, although the UK government is assessing the proposal.

Many NI businesses linked to the EU will already be in scope, but NI application would solidify employer obligations when deploying high risk tools for hiring, promotion, performance and monitoring, and could create regulatory divergence with GB. Employers may want to watch this space for further developments in 2026. See further here.

The meaning of ‘sex’ in NI to be clarified

Following the UK Supreme Court’s decision in For Women Scotland (FWS) that “sex” in the Equality Act 2010 means biological sex, in June 2025 the Equality Commission for Northern Ireland (ECNI) set out a roadmap to clarify how equivalent terms should be interpreted under NI’s distinct equality legislation, and how Article 2 of the Windsor Framework may shape the position here. We wrote about this further here.

Because NI does not have the Equality Act 2010 and retains a patchwork of legislation, the ECNI considers FWS to be highly persuasive but not binding. ECNI has now applied to the High Court for judicial review to secure clarity on these issues.

The ECNI hopes for a hearing in 2026 once the Dillon position is resolved. In the meantime, employers should proceed cautiously and follow ECNI’s interim guidance, which will be amended and finalised once the Court has clarified the position.

National living wage and statutory sick pay changes 

Statutory sick pay reform

SSP is set nationally and changes under the Employment Rights Act 2025 timetable will also apply to NI. The waiting days will be removed so SSP is payable from day one, and those below the lower earnings limit will be entitled to sick pay at 80% of average weekly earnings. The UK Government’s roadmap indicates a commencement date of 6 April 2026. Employers who rely on waiting periods within occupational schemes should review policies and budget for potential increase in short term absence. 

National living wage rises

The usual changes to the National Living Wage will apply from April 2026 with a small increase from £12.21 to £12.71 per hour. 

The current rates for the National Living Wage and the National Minimum Wage are set out here.

Case to watch…

Sara Morrison, a former inclusion coordinator at the Belfast Film Festival, brought a tribunal case claiming she was discriminated against for her gender-critical beliefs after speaking at a women's rights event. BFF argued that Ms. Morrison's attendance at the 2023 rally could damage the organisation's reputation and its partnerships with groups she had criticised. The case was heard in November 2025 with judgment expected in 2026. Despite growing case law in GB, this is the first case of its kind in NI – a discrimination claim based on gender critical views as a philosophical belief - and we will wait to see how the tribunal approaches these issues under NI law.

Summary

2026 will be a significant year for employment law reform in Northern Ireland. Key developments include the 'Good Jobs' Bill, new statutory rights for domestic abuse and parental bereavement leave, and changes to Statutory Sick Pay. Additionally, court decisions are expected to clarify the impact of the Windsor Framework on pay transparency and the legal definition of 'sex'.