Significant changes to UK employment law are due to take effect in April 2026, introducing new rights for employees and additional responsibilities for employers. These reforms will impact everything from statutory sick pay to redundancy processes and workplace equality.
In this blog, we break down the key changes and explain what your business should be doing now to prepare.
Statutory Sick Pay: A Major Shift
One of the most notable changes is to Statutory Sick Pay (SSP).
Currently, SSP is only payable from the fourth day of sickness, and employees must meet minimum earnings thresholds to qualify. However, from April 2026:
- SSP will be payable from day one of sickness
- The Lower Earnings Limit will be removed, widening eligibility
- Payments will be 80% of average weekly earnings or £123.25 (whichever is lower)
What this means for employers
This change will likely increase costs and administrative burden. Employers should:
- Update sickness absence policies
- Review payroll systems
- Consider proactive absence management strategies
Day-One Rights for Parental and Paternity Leave
Currently, employees need a qualifying period of service (26 weeks for paternity leave and one year for parental leave). From April 2026:
- Both rights will become available from day one of employment
Why this matters
This reflects a broader shift towards improving family-friendly rights at work. Employers should:
- Update family leave policies
- Train HR teams on eligibility changes
- Ensure consistency in handling requests
New Bereaved Partner’s Paternity Leave
A completely new right will be introduced.
Eligible employees will be entitled to up to 52 weeks’ unpaid leave if the child’s primary carer dies within the first year following birth or adoption .
Practical steps
- Introduce a specific bereavement leave policy
- Handle requests sensitively and consistently
- Ensure managers are trained to support affected employees
Increased Risk in Collective Redundancy
The financial consequences of getting redundancy consultations wrong are increasing.
- The maximum protective award will double from 90 to 180 days’ pay per employee
Employer takeaway
This significantly raises the stakes. Employers must:
- Follow fair and lawful consultation processes
- Seek legal advice early in redundancy situations
- Keep clear records of consultation steps
Stronger Whistleblowing Protections
From April 2026, disclosures about sexual harassment will be formally recognised under whistleblowing law.
This means employees reporting such issues will gain protection from:
- Detriment
- Unfair dismissal
What employers should do
- Update whistleblowing policies
- Ensure confidentiality clauses do not restrict disclosures
- Promote a safe and open reporting culture
Gender Pay Gap and Menopause Action Plans
Employers will soon be expected to take more proactive steps on workplace equality.
- From April 2026: action plans will be voluntary
- From 2027: they are expected to become mandatory for larger employers
Preparing ahead
- Begin reviewing gender pay gap data
- Consider menopause support policies
- Develop draft action plans early
Trade Union Recognition: Easier for Unions
Changes under the Employment Rights Act 2025 will make union recognition more accessible.
Key changes include:
- Lower threshold for union membership support (as low as 2%)
- Removal of certain majority support requirements
- Faster employer obligations to provide workforce data
Employer considerations
- Strengthen employee engagement
- Maintain clear communication channels
- Review internal policies on industrial relations
Introduction of the Fair Work Agency
A new Fair Work Agency (FWA) will be established from April 2026.
This body will:
- Enforce employment rights
- Oversee areas such as holiday pay and SSP compliance
Why it matters
Enforcement is expected to become more proactive. Employers should:
- Conduct compliance audits
- Review contracts and payroll practices
- Address any risks before enforcement action
It has been spotted that an additional requirement is coming into force on 6 April 2026 (under Employment Rights Act (ERA) 2025) requiring employers to keep adequate records to show holiday and holiday pay compliance for all workers, regardless of contract type, hours, or sector and must retain this information for 6 years.
The understanding is that there has been no explicit announcement from the government, and this hasn’t been included in published timelines for the 2026 changes but in legislation published last Friday (typically after we had finalised our output) Reg 3(8) of the commencement regulations brings into force Section 35 of the Employment Rights Act 2025, the requirement to keep records relating to annual leave. This introduces a duty to keep holiday records under the Working Time Regulations 1998 (WTR) from 6 April 2026.
This is likely to be quite key in relation to the introduction of the Fair Work Agency (FWA) (which we detailed in our document/blog) that will have new powers to enforce non-compliance for issues such as holiday pay. The FWA Agency comes into effect on 7 April 2026.
The ERA 2025 says that records may be “created, maintained and kept in such a manner and format as the employer reasonably thinks fit” but there is currently no clear guidance as to what would be deemed suitable. But we can understand so far that the information that must be recorded includes:
- Annual leave taken by each worker, including dates and the number of days or hours
- Leave carried forward from one leave year to the next, with clear justification
- How holiday pay was calculated, particularly for workers with variable pay or irregular hours
- Payments of accrued but untaken holiday in lieu of leave, such as those made on termination of employment
- Night working records, where applicable
Increases to Pay and Statutory Rates
From April 2026, several statutory rates will increase:
- National Living Wage (21+): £12.71 per hour
- Ages 18–20: £10.85 per hour
- Ages 16–17/apprentices: £8.00 per hour
- Statutory family pay: £194.32 per week
- Redundancy pay cap: £751 per week
Action points
- Update payroll systems
- Ensure accurate statutory calculations
- Budget for increased wage costs
Final Thoughts: Act Now to Stay Compliant
The April 2026 employment law changes represent one of the most significant updates in recent years. Many of these reforms expand employee rights while increasing employer obligations and financial risk.
Early preparation will be key. Reviewing your policies, contracts, and procedures now can help you avoid costly mistakes later.
How Attwells Solicitors Can Help
At Attwells Solicitors, our Employment Law team supports businesses across the UK with clear, practical advice tailored to their needs.
We can help you:
- Update employment contracts and workplace policies
- Conduct compliance audits
- Manage redundancy processes
- Provide day-to-day HR and employment law support
If you would like support preparing for the 2026 changes, please call 01206 766333 or download our free guide by clicking the button below.
