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The UK unemployment rate hits a new high of 5% + 2026 new labor law: 4 employment rights for Chinese in the UK + a complete guide to avoid pitfalls of layoffs

JustiScript

Last week, another wave of layoff lists leaked out of the City of London. At least three Chinese friends in the circle of friends asked "What should I do if I can't find a work visa for 60 days?" The data just released by the ONS are worrying - from January to March 2026, the British unemployment rate reached 5.0%, the highest level in the past five years; the number of vacant jobs fell to 705,000, the lowest since 2021; the unemployment rate for youth aged 16-24 was 16.2%, the worst in ten years.

In addition to the bad news, there is also some overlooked good news: starting in April this year, the Employment Rights Act 2025 (new labor law) was officially implemented in phases, adding several layers of protection to all workers in the UK—including Chinese. Today I will explain these "self-rescue buttons" once and for all.

📊 1. How cold is the job market?

There are three signals in the spring of 2026 that Chinese people in the UK should be wary of:

First, , the three hardest-hit areas of technology, finance, and retail, —IT, Quant, investment bank backend, and chain restaurant management positions where many Chinese people gather together—are the center of this round of shrinkage. The Indeed Hiring Lab UK report shows that recruitment demand continued to decline in May, and employers generally reduced open positions to "just needs".

Second, the salary threshold for the Skilled Worker work permit has been raised to £41,700 (from July 22, 2025), and it must be "the higher of the threshold + the going rate of the position". This means that if the employer's salary cannot keep up with the new regulations when renewing the contract, the work permit may not be renewed directly.

Third, the Immigration Advisory Committee (MAC) continues to review the "Shortage Occupation List". Some IT and design positions originally on the ISL (Immigration Salary List) have been eliminated, and the threshold has returned to the full amount.

Realistic level: If you are holding a Skilled Worker visa and are still 1-2 years away from permanent residence (ILR), must not resign . After unemployment, there is only a 60-day grace period to find a new employer to sponsor, otherwise the visa will be invalid and the 5-year residence clock will be reset to zero.

🛡️ 2. The 4 "one-a-day rights" given to you by the 2026 new law

"Day-one right" refers to being entitled to it on the first day of employment and no longer requiring accumulation of seniority. The core changes announced by Acas and GOV.UK include:

① Statutory Sick Pay (SSP) becomes a daily entitlement : The original waiting period of "no payment for the first 3 days" is cancelled, and the weekly minimum income threshold is also cancelled. Even if you have just been working for a week, are underpaid, and take sick leave, you can still get SSP from the first day.

② Paternity Leave (Paternity Leave) You can apply for from the time you join the company: 26 weeks of service is no longer required. New dads finally don’t have to grit their teeth just to take time off to support their working years.

③Unpaid parental leave also changes to the right of . If the spouse unfortunately dies during the childbirth process, the surviving spouse will be entitled to up to 52 weeks of unpaid widowed parental leave.

④ The upper limit of protection compensation for collective layoffs is doubled : The employer failed to notify and negotiate collective layoffs as required, and the "Protective Award" was increased from 90 days' wages to 180 days' wages . In other words, if a company suddenly lays off employees, the compensation they can receive can be doubled.

At the same time, the government has newly established Fair Work Agency (Fair Work Agency) to integrate minimum wage enforcement, zero-hour contract supervision, and employment agency supervision—a single phone call/online report can trigger an investigation.

⚖️ 3. Being laid off/discriminated, the 3 most important steps for Chinese people to take

The first step: keep the visa clock. After the Skilled Worker holder receives the redundancy notice, Curtailment usually gives 60 days to find a new sponsor. Synchronize immediately: ① Open LinkedIn to disclose job search status ② List all sponsor license employer lists (GOV.UK can be downloaded) ③ Evaluate whether you can switch to other visa paths such as Spouse / Graduate / Global Talent.

Step 2: Identify "fake layoffs and real discrimination". "Equality Act 2010" clearly lists "race" as a protected characteristic, including nationality, color, and ethnicity. If you find that only Chinese/Asians have been laid off, performance ratings have suddenly and inexplicably deteriorated, and British colleagues in the same position have been retained - this may constitute indirect racial discrimination. Acas data shows that racial discrimination complaints will increase by 12% year-on-year in 2025.

Step 3: Keep to the time limit. The employment tribunal (ET) appeal time limit is very strict - 3 months minus 1 day from the date of discrimination/unfair dismissal . Even if you are still negotiating with HR, you must first do Acas Early Conciliation, otherwise it will be useless no matter how reasonable you are after the time limit has passed.

💡 Practical reminder: Try to email all HR conversations, keep performance records, and keep screenshots of WhatsApp conversations. What matters in a lawsuit is evidence, not grievances.

🎯 4. What impact will it have on the countdown to permanent residence?

The most critical point: the visa window period will interrupt the "continuous residence" . The 5-year permanent residence path of Skilled Worker requires uninterrupted residence, changing employers and uninterrupted visas within the 60-day grace period, and the residence clock can be continued; however, if the visa lapses in the middle and you apply again, you often have to start from scratch.

If you really can’t find a sponsor, you can consider switching to the 10-year Long Residence path (requires 10 consecutive years of legal residence, visa categories can be superimposed), but the 180-day/12-month exit rule also applies. How to calculate each day specifically? You can use 永居计算器 APP to enter all existing visa sections and exit records, and the system will display the precise "how many days left".

📝Write at the end

The cold winter of employment is not scary. What is scary is not knowing what weapons you have. The 2026 new labor law is the largest expansion of labor rights in the UK in the past 30 years. Chinese friends especially need to understand - many people have suffered the disadvantage of "not knowing how to file a lawsuit".

leaves you a question to think about: If you receive a redundancy notice tomorrow morning, can you list these three things within 24 hours: "visa grace period, list of resumes that can be submitted, and Acas complaint time limit"? You are welcome to leave your judgment in the comment area, or forward this article to friends who are being laid off, having their salaries reduced, or being marginalized.

📚 Data source: ONS Labor Market Overview May 2026 (ons.gov.uk); Acas Employment Rights Act 2025 (acas.org.uk); GOV.UK Skilled Worker visa pages. This article is for reference only. Please consult a licensed immigration attorney and employment lawyer for specific circumstances.

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The UK unemployment rate hits a new high of 5% + 2026 new labor law: 4 employment rights for Chinese in the UK + a complete guide to avoid pitfalls of layoffs | JustiScript Immigration Blog