In this edition we take a look at AI in employment disputes, give you the latest on equality action plans and cover new right to work duties for sponsor licence holders. We also have an update on the long-awaited working time reforms in Germany and we have our usual round-up of news, our UK and EU horizon scanners, our Employment Rights Act tracker, our EU Pay Transparency Hub and information on forthcoming events including our annual Training Day on 25 June 2026.
Employment: To the Point (May 2026)
AI: Reshaping the workplace
AI generates many mixed views, as well as mixed results.
For some, AI has assisted in delivering invaluable efficiency and leaner process. For others, the dependency on and utilisation of AI has contributed to an increase in grievances, appeals, and employment tribunal claims that are spurious, verbose, and inaccurate. Our employment tribunal system is already dealing with a pre-AI stockpile. The system is so backlogged that some final hearings aren’t now listed to be heard until 2030. That’s not a typo. There are also genuine concerns around both parties’ ability to safeguard the possibility of a fair hearing.
That aside, with the challenges of employee and industrial relations and the pace of employment reforms, to say there’s a lot going on in employment would be an understatement. Those with an already stretched HR capability are finding it increasingly difficult to keep up and comply with what is necessary, let alone meaningfully consider its true impact.
So, what’s the answer? Should businesses be arming themselves with considerable AI capability? Or should they double down on human expertise, experience, and emotional quotient. The reality is employers should probably do both. AI isn’t going anywhere – so the key driver remains ensuring that you keep up with and implement AI in a manner that sensibly and genuinely supports your business, whilst building systems that also robustly filter out the unwelcome excess it also generates.
AI is just one of the topics we’ll be exploring in depth at our Annual Training Day on 25 June. We would be delighted to see you there, details below.
Editorial - by Ingrid McGhee
AI in employment disputes: Managing risk in a changing landscape
We explore how AI is reshaping workplace disputes.
Find out more here.
Equality Action Plans: What employers need to know now
The Employment Rights Act 2025 will require large employers to develop and publish action plans on reducing their gender pay gap and supporting employees experiencing menopause.
Read about the changes here.
UK Business Immigration – Sponsor licence holders face wider right to work duties after Home Office update
The Home Office has updated its Sponsor Guidance, expanding the obligation for sponsor licence holders to conduct right to work checks.
Find out what it means for employers here.
Germany’s working time reform: Long-awaited draft bill expected in June 2026
In Germany a draft bill on working time reform is expected to be published in June 2026. The main focus for employers will be working time recording, but the draft bill is also expected to address greater flexibility on how working time can be structured. We take a look at what it means for international HR and compliance teams here.
Upcoming Events:
Our annual Employment and Immigration Training Day for in-house lawyers and senior HR professionals will be taking place in our London office on Thursday, 25 June 2026.
We will be looking at the employer of tomorrow, exploring the practical implications of the post-ERA 2025 employment law landscape, strategies to help employers manage the changes to unfair dismissal and fire and rehire coming into force in January 2027, making AI work for HR and managing the increasing use of AI in employment disputes. It promises to be a very popular event. To register, visit our registration page here.
Our Warsaw team is running a series of webinars on different aspects of the EU Pay Transparency Directive. The next in the series will take place on Wednesday, 17 June 2026. For more information, please contact Warsaw@aglaw.com.
For our Employment and Immigration Training Calendar 2026 listing all our client training events, please visit our website page here.
What else you should know
- We take a look at recent changes in France which significantly ease the obligation to provide prior information to employees in the sale of a company or a business transfer in our article Business transfer and prior information of employees: a reform that (finally) simplifies the rules of the game
- A recent Labour Court decision in Germany alleging sex discrimination in a job advert highlights issues for employers handling potentially opportunistic claims. Find out more in our article Germany: Labour Court decision shows limits of abuse of rights defence and highlights recruitment risks
- With geopolitical instability affecting the UAE and employers seeking ways to manage costs, we look at the law on salary reductions and deductions in our article Safeguarding payroll in turbulent times: Lawful salary deductions and reductions under UAE Labour Law
- Our latest HR in the Know from Poland looks at the State Labour Inspection’s significant new powers to reclassify civil law contracts as employment relationships. See HR in the Know 7/2026: Reclassification of civil law contracts by decision of the State Labour Inspection: the amendment will come into force on 8 July 2026
- Keep track of the latest developments on the EU Pay Transparency Directive by visiting our Pay Transparency Hub on our website here.
- For all the latest legislative developments, see our latest UK Employment Horizon Scanner and our Employment Horizon Scanner for Ireland, France, Germany, Spain and Poland as well as our Employment Rights Act 2025 Tracker by visiting the resources section of our website page here.
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