UK Business Law Reforms Set for 2026: Key Changes Ahead

The UK is gearing up for significant business law changes in 2026, spanning employment rights, data protection, mergers, and corporate mobility.

Key updates include April 2026 reforms to sick pay, family leave, and collective consultation periods; expansions to the Enterprise Management Incentive (EMI) scheme with higher employee limits (250 to 500), gross assets (£30m to £120m), and share values (£3m to £6m); UK GDPR tweaks introducing a 'recognised legitimate interest' basis, relaxed automated decision-making rules, and higher PECR fines up to 4% of global turnover; more Phase 1 merger clearances with behavioural remedies; corporate redomiciliation consultations; and digitisation ending paper share certificates by 2027.

These pro-growth measures reflect the government's push for efficiency and innovation, with the CMA balancing enforcement and business support. For UK operations, expect streamlined compliance but heightened scrutiny in competition and data handling.