From changes to child employment law through to revised mileage allowances, these developments introduce both compliance considerations and practical implications for organisations.
Understanding what has changed – and what action may be required – is key to staying aligned with current requirements.
Key developments shaping the 2026 employment landscape
Several updates are influencing how organisations manage their workforce this year. These include legislative changes affecting younger workers, adjustments to tax-related mileage allowances and ongoing consultation on future employment reforms.
While some changes are already in effect, others are expected to be introduced later in 2026, meaning businesses should remain alert to further updates.
Updates to child employment rules
Recent legislation has introduced changes aimed at creating a more consistent and structured approach to employing children. The Children’s Wellbeing and Schools Act 2026 includes provisions that will affect how employers engage workers aged 14 to 16.
A move towards national consistency
One of the key shifts is the move away from local variation in employment rules. A national framework will replace differing local authority by-laws, providing clearer and more consistent guidance for employers across the UK.
Introduction of mandatory work permits
Under the new approach, all children within the relevant age group will require a permit issued by their local authority before they can be employed. This formalises a process that was previously handled differently depending on location.
Changes to working hours
The updated rules introduce greater flexibility around when children can work:
- Sunday working limits are now aligned with Saturday allowances
- Evening working hours have been extended, with a later permitted finish time
- Existing restrictions on working during school days remain in place
These adjustments provide more consistency but still require employers to ensure that work does not interfere with education or wellbeing.
Mileage allowance update: what has changed?
Alongside legislative changes, there has been a notable update to HMRC mileage rates for business travel. From April 2026, the approved rate for cars and vans has increased for the first time in many years.
New mileage rates explained
The updated structure is:
- 55p per mile for the first 10,000 business miles
- 25p per mile for journeys beyond that threshold
- No changes to motorcycle or bicycle rates
This increase is intended to better reflect the rising cost of vehicle use, including fuel, maintenance and general running expenses.
What this means for employers
Although the mileage rate is advisory, it has important implications for businesses. Employers should review:
- Existing employment contracts and expense policies
- Payroll systems and reimbursement processes
- Whether mileage payments need to be adjusted or backdated
Where employers choose not to adopt the higher rate, employees may still be able to claim tax relief on the difference.
Reviewing policies and procedures
Both the update to child employment rules and the change in mileage rates highlight the need for regular policy reviews.
Organisations should take this opportunity to:
- Check that contracts and policies reflect current requirements
- Ensure internal processes align with updated rates and rules
- Communicate changes clearly to employees
- Keep accurate records for compliance and audit purposes
Staying proactive can help avoid administrative issues and ensure a smooth transition.
Looking ahead: further employment changes on the horizon
In addition to these confirmed updates, the Government continues to consult on wider employment reforms as part of its longer-term policy direction.
This means further changes are likely in the coming months and years, making it important for organisations to stay informed and adaptable.
Key takeaway
The 2026 updates to child employment law and mileage allowances may seem straightforward, but they carry practical implications for employers. From updating policies to reviewing payroll systems, taking early action can help ensure compliance and minimise disruption.
By keeping pace with regulatory changes, organisations can maintain effective workforce management while supporting both operational efficiency and employee confidence.
