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ARTICLE · 01 MAY 2026

Employment Update May 2026

Travers Smith LLP
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This comprehensive employment law update examines critical developments reshaping workplace regulations, from mandatory pay equality reporting and action plans across Europe and the UK to expanded third-party harassment liability and new trade union access rights. The analysis explores how upcoming legislative changes will fundamentally alter employment contracts, settlement agreements, and employer obligations from 2026 through 2027.

United KingdomEmployment and HR
Tim Gilbert
Tim Gilbert
Siân Keall
Siân Keall
Ed Mills
Ed Mills
Adam Wyman
Adam Wyman
Ailie Murray
Ailie Murray
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In the News

Pay equality

Tesco has been in the news as it seeks to defend long-running equal pay claims from thousands of store assistants. The case is one of many against large retailers – including Asda, Morrisons, Sainsbury's and Co-op – where predominantly female shop staff claim they are paid less than predominantly male warehouse staff for doing work of equal value.

The claims have brought equal pay into the spotlight in recent years – where it looks set to remain, given upcoming developments in Europe and the UK.

The EU Pay Transparency Directive introduces gender pay gap reporting requirements for large employers across Europe and must be implemented by 7 June 2026. Where there is an unjustified pay gap of five percent or more, the employer will also be required to conduct a joint equal pay audit with employee representatives. All employers operating in Europe, regardless of their size, will also have new obligations to

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