A specific set of income tax rules (contained in Chapter 5 of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003)) applies to securities options that are employment-related. These are the rules that typically bring unapproved share options (ie those granted outside of a tax-advantaged share ownership scheme) within the charge to income tax. This Practice Note explains: • what a securities option is, and • when a securities option is employment-related For full details of the income tax treatment of employment-related securities options, see Practice Note: Securities options—income tax treatment. An unapproved option falling outside of the definition of securities option, for example a share option acquired pursuant to arrangements with a main purpose of tax or National Insurance contributions (NICs) avoidance, is not subject to income tax under the securities option rules. Instead, such options that are employment-related are typically subject to income tax under the specific rules relating to convertible securities. For more details on these tax charges, see Practice Note: Convertible securities—tax treatment. Alternative rules apply to

The checklists below highlight key chargeable events that can result in employment-related securities income tax and National Insurance contributions (NICs) charges, namely: • the acquisition of employment-related securities by an employee or director • events during an employee or director's ownership of employment-related securities • the disposal of employment-related securities by an employee or director other than to an associated person, and • the acquisition and disposal of unapproved employment-related securities options This note also contains a table setting out guidance on some common transactions where employment-related securities tax charges can arise. Where income tax charges arise in relation to employment-related securities for which the employing company is required to account to HMRC via PAYE, note that further income tax and NICs charges can also arise if the employee or director fails to reimburse the employer before the end of the period of 90 days following the end of the tax year in which the original charge arose (for more details see Practice Note: Notional payments not made

Employment-related securities and securities options The definition of an employment-related security is broadly any security (which includes shares, certain rights under contracts of insurance, debt, derivatives, warrants and interests in investment partnerships and other collective investment schemes) where the right or opportunity to acquire that security (or any interest in it) is made available by reason of the employment of the person acquiring it, or any other person. Whether or not securities are employment-related will determine the tax treatment at acquisition, disposal and throughout their period of ownership. This Practice Note looks at the interaction of the income tax charging provisions and the capital gains tax (CGT) rules which apply on the disposal of employment-related securities. Share options are not classed as employment-related securities and they are referred to as ‘securities options’ for the purposes of the tax rules, although very often options will be granted over employment-related securities. For further detail on what is an employment-related security, see Practice Note: What is an employment-related security? The capital gains

Employers (or other responsible persons) are required to provide specified information to HMRC in relation to reportable events involving employment-related securities or securities options held by employees or directors who are UK resident for tax purposes or perform duties in the UK (or are likely to become UK tax resident or perform UK duties while holding such securities or securities options). Such information must be provided: • online to HMRC (unless HMRC allows the return to be given another way) • by 6 July following the end of the tax year in which the reportable event took place (unless HMRC announces an extension, as it has done in the past, eg where there have been technical issues with the system) All companies that operate employee share incentives for their employees (whether or not they are tax-advantaged) have to register those arrangements online with HMRC and then also file annual returns in relation to these by 6 July of each year. The returns must be filed online unless HMRC agrees otherwise, and automatic penalties apply if this

The following rates and limits are included in this table: • national minimum wage (NMW) • statutory sick pay (SSP) • income tax rates and allowances (England and Northern Ireland), income tax rates and allowances (Scotland) and income tax rates and allowances (Wales) • National Insurance contributions (NICs) • pensions allowances and limits • maternity, parents and carers-related pay • jury service allowance • data protection fees Links to relevant legislation, and Practice Notes and News Analysis, are included for entries. For details of the compensation limits that apply in employment claims, see Practice Note: Compensation limits in employment claims. National minimum wage (NMW) See Practice Note: National minimum wage Rate From 1 April 2026 From 1 April 2025 From 1 April 2024 From 1 April 2023 Legislation National living wage rate:Workers aged 21 and over (previously, on or before 31 March 2024, workers aged 23 and over) £12.71 (National Minimum Wage (Amendment) Regulations 2026, SI 2026/357, reg 2(2)) £12.21 (National Minimum Wage (Amendment) Regulations 2025, SI 2025/401, reg 2(2)) £11.44 (National Minimum

Where the right or opportunity to acquire securities (or an interest in securities) is available because of a person’s employment or made available by their employer (or a connected person). Various tax charges can arise in relation to the acquisition, ownership or disposal of employment-related securities.

HMRC has published Employment Related Securities Bulletin 63

Statistics relating to the employment tribunals for the quarter January to March 2025 have been published by the Ministry of Justice (MOJ). The statistics provide a snapshot of the number and types of cases that have been dealt with in the employment tribunals during Q4 2024/25, and also provide annual figures for 2024/25.

Ireland—Employment analysis: This article is written by A&L Goodbody’s Employment Team. As many will be aware, employers with 50 or more employees must report on their gender pay gap in November 2025.

This Practice Note scans the horizon for what to expect in employment law, ie what’s new and upcoming changes in employment law. It provides a summary of the key legal developments that are expected to impact employment lawyers during the course of this year and beyond. It is continuously reviewed and updated. The tables below set out, in chronological order, dates of relevance for employment lawyers, covering legislation, cases, consultations and other legal developments, sorted by month. For employment law developments that have recently happened, see: Archived—2026 Employment horizon scanner—dates for your diary. For previous years’ employment law developments, set out by month, see: • Archived—2025 Employment horizon scanner—dates for your diary • Archived—2024 Employment horizon scanner—dates for your diary • Archived—2023 Employment horizon scanner—dates for your diary • Archived—2022 Employment horizon scanner—dates for your diary More information and links to relevant news stories can be found in: • Case tracker—Employment • Legislation tracker—Employment, and • Consultation tracker—Employment Employment Rights Act 2025 and other Labour Government workplace reforms This Practice Note provides a high-level summary of implementation

This Practice Note provides an overview of, and links to, the key materials available in Lexis+® UK to assist those unfamiliar with employment law, such as trainees or generalists, who wish to gain a basic understanding of the fundamental aspects of employment law practice. The Practice Note lists various introductory materials and includes resources relevant to the main areas of work that employment lawyers are likely to be involved with in practice. It also highlights key resources and efficiency tools provided by Lexis+® UK Employment for employment practitioners. This Practice Note is typically reviewed in September and March each year. Employment law—a general overview The Labour and employment—United Kingdom—Q&A guide, one of the Lexology Panoramic guides available in Lexis+® UK Employment, provides an overview of the main areas of employment law in the UK. Each of the topics in Lexis+® UK Employment has an Overview document, which provides a high-level introduction to the subject-matter of the topic and signposts core content. The Overviews are therefore an ideal route into a particular topic. Listed below are links to the

The following Employment law resources, providing useful practical commentary, legislation, rules and guidance for employment lawyers, whether in private practice or in-house, are available in Lexis+® UK. They are referenced and linked to in the Employment content in Lexis+® UK. Please note, however, the titles listed can only be accessed with the relevant Lexis+® UK subscription(s). Employment law Title Summary Who should use this resource? Butterworths Employment Law Handbook A statutory handbook published annually, comprised of fully-updated statutory materials, original EU Directives and non-statutory materials relating to employment law in England and Wales, and in Scotland. Lawyers advising on general employment law. Drafting Employment Documents for Expatriates A guide to drafting employment documents for expatriates, with practical suggestions, checklists and framework documents. Lawyers involved in drafting employment documentation for expatriates working overseas. EU and International Employment Law A multi-jurisdictional