Following a period of legislative proposals and consultations,
2026 looks set to be a significant year for employment law reform
in Northern Ireland. Several flagship proposals are expected to
solidify into law, including the Department for the Economy’s
‘Good Jobs’ bill, alongside changes to domestic abuse
leave, parental bereavement leave, and statutory sick pay.
Employers should also monitor key developments regarding post
Brexit Windsor Framework protections and the ongoing clarification
of the legal definition of “sex.”

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’.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.