Business Compliance in 2026: Key Regulatory Updates and What You Need to Know

As we progress through 2026, many of the regulatory changes passed in 2025 are now coming into force — and further reforms remain on the horizon. From significant shifts in employment law to data protection, corporate transparency and housing rights, the compliance landscape in the UK continues to evolve.

Understanding these changes and adapting your policies, processes and training programmes is essential for reducing risk, maintaining legal compliance and supporting organisational resilience.

Employment Law: Landmark Changes from 2025 and Into 2026

One of the most significant developments affecting businesses in 2026 is the continuing reforms under the Employment Rights Act 2025. Many of its provisions are now being implemented in stages throughout 2026. These include:

• Day one rights to parental and paternity leave from the first day of employment.
• Statutory sick pay (SSP) entitlement from day one, and the removal of the lower earnings threshold for eligibility.
• Enhanced whistleblowing protection, with disclosures relating to sexual harassment now qualifying for protection.
• Doubling of collective redundancy protective awards for failure to consult correctly.
• Establishment of a Fair Work Agency to consolidate the enforcement of a range of employment rights.

In addition, changes coming in later parts of 2026 include:

• Extension of unfair dismissal rights to employees after six months of service rather than two years, expected to take effect in late 2026 or early 2027.
• Increased employer responsibilities in preventing harassment from third parties and ensuring reasonable accommodations, with changes planned for October 2026.

These reforms have direct implications for HR policies, contracts of employment, staff handbooks and everyday workplace practice. Ensuring your teams understand these changes through clear training and communication is essential.

Employment law compliance and HR training

Data Protection and Digital Regulation: New Laws Taking Effect

A key piece of legislation passed in 2025 that is now being implemented in phases is the Data (Use and Access) Act 2025. This act makes significant changes to the UK GDPR framework and related data law. Among its effects are updates to lawful bases for processing data, expanded exceptions for organisations such as charities and new requirements around data subject complaint handling that are expected to begin in 2026.

As data volumes grow and digital services become more central to business operations, these reforms emphasise the need for Data protection and GDPR training and robust data governance, complaints handling and compliance processes.

Corporate Transparency and Company Law Updates

From late 2025, new identity verification requirements for company directors and persons of significant control (PSCs) were introduced under the expanded framework of the Economic Crime and Corporate Transparency Act. These measures aim to enhance the accuracy of Companies House data and combat fraud. Directors and PSCs now have mandatory timelines to verify their identities, with non-compliance potentially leading to penalties, rejection of filings and even disqualification.

Further company law updates are expected in 2026, including new rules for authorised corporate service providers (ACSPs) handling filings on behalf of other entities.

Housing and Property: The Renters’ Rights Act 2025

The Renters’ Rights Act 2025 received Royal Assent in October 2025 and is set to reshape parts of the residential rental market when its provisions begin coming into force in 2026. This legislation introduces new standards for rented homes, including improvements to conditions, safety and enforcement powers for local authorities.

For organisations involved in housing management, property services or compliance functions affecting tenants, staying ahead of these requirements will be crucial.

Tenant safety and compliance training

Preparing Your Compliance Programme for 2026

To remain compliant as laws change, businesses should take a proactive approach throughout 2026. This includes:

• Conducting a regulatory impact review that maps each new legal change to internal policies and processes.
• Updating key corporate documents, contracts and procedures where legislative changes have altered legal obligations.
• Ensuring that relevant teams — HR, data protection, compliance, operations and leadership — receive appropriate briefing and training.
• Monitoring government guidance, regulator updates and statutory instruments that finalise the details of phased reforms.

Embedding these practices will help businesses manage regulatory risk and support ongoing compliance.

Compliance as a Strategic Priority in 2026

The regulatory landscape in 2026 reflects the culmination of major legal changes passed in 2025 and the start of significant reforms that will continue through the year. From employment law and data protection to corporate transparency and housing standards, organisations must remain vigilant and responsive.

Prioritising compliance through structured reviews, effective training and robust internal controls not only reduces legal risk but also strengthens organisational reputation and resilience.

Staying ahead of regulatory updates will be one of the defining compliance challenges — and opportunities — of 2026.