United Kingdom

UK Employment Law in 2026: A Watershed Year for Compliance

For employers and recruitment agencies operating in the UK, 2026 marks a decisive shift in the regulatory landscape. With the passage of the Employment Rights Act, we are witnessing the most significant overhaul of labour laws in a generation. At Access Financial, we are closely monitoring these developments to ensure your workforce solutions remain compliant and efficient.

Here are the critical changes expected this year that every HR director and contractor must know.

Day-One Rights and Family Leave: Starting in April 2026, the traditional qualifying periods for certain family leaves are vanishing. Paternity and parental leave will become “day-one rights,” removing the previous service requirements. Furthermore, statutory restrictions on when paternity leave can be taken in relation to shared parental leave will be relaxed, offering families greater flexibility.

Sick Pay Reforms: The financial safety net for employees is being tightened. Statutory Sick Pay (SSP) will become payable from the very first day of illness, abolishing the three-day waiting period. Crucially, the lower earnings limit will be removed, meaning all eligible employees-regardless of their earnings-will be entitled to SSP. This will have immediate payroll implications for lower-paid workers and those on variable hours.

The Rise of the Fair Work Agency: Enforcement is getting sharper. A new Fair Work Agency is set to be established by 7 April 2026. This body will consolidate enforcement powers regarding the minimum wage, modern slavery, and employment agency regulations. It will also gain new powers to enforce holiday pay and statutory sick pay compliance, with the authority to levy higher penalties for non-compliance.

Industrial Relations and Dismissal Protections: Expect significant changes to trade union legislation. The controversial minimum service levels during strikes have been repealed, and new protections for trade union representatives are expected by October 2026.

Perhaps most notably for workforce planning, the government is moving to significantly restrict “fire and rehire” practices. By January 2027, the qualifying period for unfair dismissal rights is set to be reduced to six months, meaning employers must ensure their probation and performance management processes are robust well before this deadline.

Action Point: With joint and several liability for PAYE and NICs potentially extending to end clients and agencies working with non-compliant umbrella companies from April 2026, vetting your supply chain has never been more critical.

Belgium

Compliance Focus: Navigating Belgium’s Anti-Exploitation Measures

Belgium remains at the forefront of establishing robust legal frameworks to protect migrant workers, a stance that imposes strict vigilance on international recruitment and supply chains. As highlighted in recent European Migration Network (EMN) findings, Belgium is prioritising the combat against social dumping—the practice where workers are subject to sub-standard pay and working conditions compared to local regulations.

For our partners and clients, this means that “chain liability” principles effectively apply through the rigorous enforcement of anti-exploitation laws. The Belgian authorities focus on ensuring that policies remain flexible enough to meet labour market demands while maintaining a “robust” protection of rights. This includes strict monitoring of shortages and compliance checks to prevent the misuse of migration channels.

When deploying contractors in Belgium, ensuring your supply chain is fully transparent and compliant with local labour standards is not just best practice—it is a regulatory necessity to avoid the risks associated with social dumping and exploitation.

Business Immigration Reform: Digitalisation and Regional Strategy

Belgium is refining its approach to business immigration to tackle persistent labour shortages, employing a mixed strategy that balances employer needs with strict regional requirements. A key development for 2026 and beyond is the divergence in regional policies, particularly between Flanders, Wallonia, and Brussels.

Regional Shortage Lists: The definition of “shortage occupation” now varies significantly by region. For instance, Flanders defines it as a job with structural labour shortages, whereas Brussels views it as a subcategory of critical occupations. These lists are updated regularly to determine which roles are exempt from labour market testing, making regional knowledge essential for successful permit applications.

Digital Streamlining: To facilitate faster recruitment, Belgium has invested in the “Working in Belgium” Single Electronic Platform. This system allows employers to electronically file and monitor applications for Single Permits and EU Blue Cards, significantly reducing administrative friction.

International Partnerships: Belgium is also pioneering “Skills Mobility Partnerships” (SMPs). Notably, a project with Morocco and Tunisia (THAMM) focuses on the healthcare sector, establishing ethical recruitment channels for nurses and healthcare workers to address critical staffing gaps.

Finland

Stricter Requirements for Permanent Residence Permits

As of 8 January 2026, Finland has implemented significant amendments to the Aliens Act, tightening the criteria for obtaining a permanent residence permit. These changes represent a shift towards requiring stronger integration and language proficiency from foreign talent.

Key Changes:

• Extended Residency: The continuous residency requirement has increased from four years to six years.
• Language Proficiency: Applicants must now demonstrate proficiency in Finnish or Swedish via a language test.
• Employment History: Applicants generally require a two-year work history without reliance on unemployment benefits.

Exceptions for High Earners: Crucially for our contractors, there are exceptions that allow for a permanent permit after just four years if specific criteria are met:

• High Income: Annual income exceeding €40,000.
• Education: Holding a higher university degree recognised in Finland.
• Language Skills: Demonstrating particularly good Finnish or Swedish skills.

Employers should proactively support staff with language training to ensure retention under these new, stricter rules.

France

2026 Minimum Wage (SMIC) Increase and Immigration Impacts

Effective 1 January 2026, the French minimum wage (SMIC) has risen to support worker purchasing power. This increase has a direct knock-on effect on the salary thresholds required for various business immigration permits.

New Rates:

• Hourly SMIC: Increased by 1.18% to €12.02.
• Monthly Gross: Approximately €1,823.03 for a standard 35-hour week.

Impact on Permits: Income requirements for residency permits are often calculated as multiples of the SMIC. For example:

• Salarié / Travailleur temporaire: Requires 1.5 x SMIC Gross.
• Talent Passport (Qualified Employee): Typically requires 2 x the Reference Salary.
• EU Blue Card: Requires 2.5 x the Reference Salary (approx. €59,373/year).

Ensuring your contractors meet these updated thresholds is vital for the validity of their work permits in 2026.

Social Surtaxes and the Flat Tax on Capital Gains

For contractors and high-earners in France, understanding the taxation on investment income is critical. Capital gains on securities are subject to the Prélèvement Forfaitaire Unique (PFU), commonly known as the “flat tax”.

The Breakdown: The PFU rate remains at 30%, composed of:

• 12.8% Income Tax.
• 17.2% Social Levies (Surtaxes).

High earners may also face an exceptional income tax on top of this, with marginal rates of 3% or 4% depending on income levels. While tax rebates for length of holding exist for income tax (under specific conditions), the 17.2% social surtaxes generally remain due regardless of holding period, with limited exceptions for long-held real estate.

Ireland

Increased Minimum Remuneration Thresholds for 2026

Effective 1 March 2026, Ireland has increased the Minimum Annual Remuneration (MAR) thresholds for employment permits. This follows a strategic roadmap to align migrant salaries with domestic wage growth.

Why this matters: If you employ staff on General Employment Permits or Intra-Company Transfer permits, you must ensure their salaries meet the new bands upon renewal. For example, a graduate previously on €34,000 may need to be uplifted to €36,630 to remain compliant.

Failure to meet these new thresholds by the deadline could result in refusal of permit renewals, risking your employee’s right to work. We advise auditing your current workforce immediately to identify any salary gaps before the March deadline.

Italy

Implementation of the Recast EU Single Permit Directive

As part of a broader EU initiative to attract talent, Italy is subject to the recast EU Single Permit Directive (Directive 2024/1233), adopted in April 2024. Member states, including Italy, have a two-year transposition period, making 2026 a critical year for implementation.

What changes for employers? The recast Directive aims to simplify the procedure for third-country nationals to reside and work. Crucially, it introduces the right to change employers. This means a Single Permit holder in Italy will have greater flexibility to switch jobs without losing their residence status immediately, reducing the dependency on the initial sponsor and mitigating the risk of exploitation.

Furthermore, the new rules dictate shorter decision-making deadlines for applications, which should help alleviate the processing delays often faced by Italian employers.

Netherlands

2026 Salary Thresholds for Highly Skilled Migrants

The Dutch government has announced the 2026 salary criteria for the Highly Skilled Migrant (HSM) scheme, effective 1 January 2026. These thresholds have increased by 4.46%.

New Gross Monthly Thresholds (excluding holiday allowance):

• Highly Skilled Migrant (30+): €5,942.
• Highly Skilled Migrant (<30): €4,357.
• EU Blue Card: €5,942.

New Compliance Requirement: Recognised sponsors must now strictly retain evidence of monthly salary payments, such as bank statements, to prove the salary was deposited into an account in the employee’s name. This adds a layer of record-keeping that must be adhered to for audit purposes.

Cyprus

Cyprus Sets Course on Pay Transparency

Cyprus is moving towards the full transposition of the EU Pay Transparency Directive ahead of the June 2026 deadline. A tripartite technical committee has been established to oversee the drafting of the harmonization bill.

The legislation is expected to introduce mandatory gender pay gap reporting and a ban on pay secrecy. While the final draft is still being processed through the Labour Advisory Body and Council of Ministers, employers in Cyprus should anticipate a new era of openness regarding remuneration policies.