UK Employment Law Changes – April 2026
Introduction
From April 2026, a number of significant employment law changes come into force, introducing new rights for employees, increased costs for employers, and a much stronger enforcement environment.
These changes represent a material shift in employer obligations, particularly in relation to statutory sick pay, holiday records, compliance enforcement, and the broader expansion of employee rights.
1. Key Dates
- 1 April 2026 – National Minimum Wage increases
- 5 April 2026 – Statutory payment rates increase
- 6 April 2026 – Main Employment Rights Act changes take effect
- 7 April 2026 – Fair Work Agency becomes operational
2. National Minimum Wage / Living Wage
Effective: 1 April 2026
National Living Wage (age 21+): £12.71 per hour. Other age bands also increase.
Implications: Increased payroll costs and potential knock-on impact on salary structures
3. Day One Employment Rights
Effective: 6 April 2026
The following rights will now apply from day one of employment:
- Paternity leave
- Unpaid parental leave
Statutory paternity pay is unchanged and still requires 26 weeks’ service and an earnings threshold.
Implications: Employees may take leave immediately, but it may be unpaid, and there is potential for an increased risk of misunderstanding if not clearly communicated
4. Statutory Sick Pay (SSP) Reform
Effective: 6 April 2026
- SSP payable from day one of absence
- Lower Earnings Limit removed, meaning all employees are eligible
- Rate £123.25 per week or 80% of average weekly earnings if lower
Implications: Significantly expanded eligibility, increased cost exposure, more short-term absence, increased payroll complexity.
5. Fair Work Agency
Effective: 7 April 2026
A new enforcement body with powers to investigate employers without employee complaints, require production of records, enforce SSP, holiday pay and wage compliance and issue penalties.
What this means in practice:
- Increased likelihood of audits and inspections
- Greater scrutiny of holiday pay, record keeping and worker status
- Employers must be able to demonstrate compliance proactively, not just respond to claims
6. Trade Union & Collective Rights
Effective: from 6 April 2026
What’s changing:
- Easier processes for unions to gain recognition
- Removal of requirement to show likely majority support before recognition
- Removal of the 40% workforce support threshold in ballots
What this means in reality:
- Increased likelihood of union approaches and organising activity
- Faster and more straightforward recognition processes
- Greater employee awareness of collective rights
What employers should do:
- Strengthen employee engagement
- Ensure effective communication channels
- Address issues early
- Train managers to handle concerns
The key risk is unaddressed employee dissatisfaction combined with easier union access
7. Statutory Payment Rates
Effective: 5 April 2026
- Statutory Sick Pay (SSP): £123.25 per week (or 80% of earnings if lower)
- Statutory family-related pay (Statutory maternity/paternity/adoption/shared parental leave): £194.32 per week (or 90% of earnings if lower)*
*For statutory maternity and adoption pay, the first 6 weeks are paid at 90% of average weekly earnings, after which the standard statutory rate applies. Paternity and shared parental pay are paid at the standard rate throughout.
8. Holiday Records (Statutory Duty and Practical Guidance)
Effective: 6 April 2026
Employers will now be legally required to keep adequate records of annual leave and holiday pay.
What must be recorded:
- Holiday entitlement (including accrual and carry-over)
- Leave taken
- Holiday pay calculations
- A clear audit trail linking leave taken to payment made
- Retention requirement - records must be kept for 6 years
- Practical requirement -employers must be able to demonstrate both entitlement and correct holiday pay calculation
What’s not sufficient:
- Basic calendars
- Simple spreadsheets
- Payroll-only records
Acceptable approaches:
- HR system (recommended)
- Tracks entitlement and leave
- Provides audit trail
- Ideally integrated with payroll
- Combined HR and payroll records
- Holiday tracking plus payroll reports
- Clear linkage between leave and pay
- Structured spreadsheets (with caution) - must include entitlement, leave and calculation logic
Key risk areas:
- Variable pay workers (overtime, commission)
- Irregular hours workers
- Manual systems
- Compliance risk
Will be enforced by the Fair Work Agency. Failure to comply may result in financial penalties
9. Sexual Harassment – Ongoing Duty
In force from 26 October 2024
Employers must take reasonable steps to prevent sexual harassment
Key points:
- Proactive duty (not just reactive)
- Up to 25% compensation uplift for non-compliance
April 2026 update:
- Disclosures relating to sexual harassment are explicitly protected under whistleblowing law
Implications: Increased risk if complaints are not handled appropriately and greater scrutiny of workplace culture and practices
10. Changes Coming Later
August 2026
- Electronic trade union balloting
October 2026
- Duty to inform employees of right to join a trade union
- Stronger union access rights
- Sexual harassment duty strengthened to “all reasonable steps”
- New duty to prevent third-party harassment
January 2027 (planned, not yet confirmed)
- Reduction of the unfair dismissal qualifying period to 6 months. This is expected to represent the point at which employees gain full employment rights
- Fire and rehire restrictions also expected to take effect
11. Key Employer Actions
- Update policies and contracts
- Implement SSP changes
- Review holiday pay calculations
- Ensure record-keeping compliance
- Train managers on new rights
- Strengthen employee engagement
- Review anti-harassment measures
Call to Action
If you are unsure whether your organisation is compliant with the April 2026 changes, we are offering compliance reviews.
We can support with policy updates, holiday pay and SSP audits, record-keeping reviews and manager training.